Documente Academic
Documente Profesional
Documente Cultură
Marketing Strategy
James E. Coleman
CPA, CFP, PhD
3 common expectations of
employers of recent MBAs
Learn
FOUR Ps
F
O
U
R
C
s
(Context)
External Market Environment
3rd edition
Overview
The Process
Analysis of market situation/opportunities
Planning and budgeting
Make marketing plan DECISIONS!!!
Next
Decision
period
Industry Environment
Market growth
Technological environment
No major innovations expected
Yearly revision cycle
Competitive environment
Type of competition depends on firms decisions
High-tech Modern
Managers Students Professional
Creators
Harried
Assistants
Segments have different needs, preferences,
situations, sizes, growth rates.
Home
Users
Distribution Channels
Firm 1
Firm 2
Firm 3
Channel 1
Traditional
Dealers
High-tech
Managers
Firm 4
Channel 2
Discount
Dealers
Modern
Students
Harried
Assistants
Concerned
Parents
Professional
Creators
Home
Users
Different segments
have different shopping
preferences.
Key
Product
Features
Cost to Decrease
Cost to Increase
$0
$8,000*(change)2
$0
$5,000*(change)2
$3,000*change
$3,000*(change)2
Product 2 R&D costs follow the same pattern as Product 1 (shown above)
Example
Last
periods
product
This
periods
product
Change
Cost to Change
Special Commands
+2
$8,000*2*2=$32,000
Error Protection
-1
$0
Ease of Learning
+2
$3,000*2*2=$12,000
Feature
$44,000
Level 3
Key
Product
Features
Types of Advertising
Pioneering
Best for expanding market demand early in PLC
Direct competitive
Best for stimulating current sales (reduced carryover)
Indirect competitive
Best for building brand awareness & improves carryover
Reminder
Improves ad effectiveness if brand awareness is high
Corporate (Institutional)
Creates halo effect for the other product (not useful for
single product situations)
PRICE
PLACE
PROMOTION
-Advertising
Saturation
Level
Threshold
Level
Marketing Spending
Advertising expense
Customer service expense
Sales Promotion Expense
Market research reports expense
Discretionary Budget
$1,500,000
If you overspend your regular budget it is
automatically deducted from this amount.
When its gone, its gone.
If you overspend after its gone, it comes out
of your advertising budget.
Unspent money carries to future periods and
earns interest.
Computing Prices
Computing Retail Prices from Wholesale Prices:
Expected Retail Price = Wholesale price/(1-% Markup)
Example:
Wholesale price = $105
Channel 1 Retail Price = ($105/(1-.50)) = $210
Channel 2 Retail Price = ($105)/(1-.35) = $161.54
Competitor Analysis
Segments
1
1
3
4
5
6
X
X
Firm 1
25,151
.250
$4,292,964
Firm 2
25,151
.250
$4,292,964
Firm 3
25,151
.250
$4,292,964
Firm 4
25,151
.250
$4,292,964
Total
100,604
Channel
Unit Sales
$17,171,854
Dollars Sales
56,296 $10,696.240
44,308
$6,475,614
Retail
Retail
Error Ease
price
price
of
channel channel
Special protect1
2
commands ion learning
8
8
8
8
3
3
3
3
3
3
3
3
$190.00
$190.00
$190.00
$190.00
$146.15
$146.15
$146.15
$146.15
Firm 2
Firm 3
Firm 4
$250,000
$250,000
$250,000
$250,000
Sales Promotion
Channel 1
Channel 2
$0
$0
$0
$0
$0
$0
$0
$0
10
10
5%
$92,500
10
10
5%
$92,500
10
10
5%
$92,500
10
10
5%
$92,500
Adv. Dollars
Adv. Type
(NOT Free)
Firm 1
Firm 2
Firm 3
Firm 4
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
Total
Sales
(units)
20,028
15,084
25,104
10,240
22,056
8,092
Channel 1 Channel 2
Firm 1
Firm 2
Firm 3
Firm 4
0.250
0.250
0.250
0.250
0.250
0.250
0.250
0.250
Total Sales
(units)
56,296
44,308
Segment
Students
Home
Assistants
Creators
Managers
Parents
Special
Error
Ease of
Commands Protection Learning
10-13
7-10
10-13
12-15
13-16
5-8
2-4
2-4
6-8
2-4
6-8
2-4
1-3
6-8
6-8
4-6
2-4
7-9
Price
Range
low
low
high
high
high
low
0.550
100%
100%
Channel 1:
Sales Rep Workload
Dealer Satisfaction
Channel Strength
(Push)
100%
1.00
.500
0
0
3
3
Channel 2:
Sales Rep Workload
Dealer Satisfaction
Channel Strength
(Push)
100%
1.00
.500
0
0
3
3
Channel 1
896
1,109
5,602
1,808
4,363
1,086
Channel 2
5,269
3,337
1,396
1,196
1,865
1,074
Firm
Segment
Students
Home
Assistants
Creators
Managers
Parents
Percent of Shopping
Percent of Shopping
in Channel 1
in Channel 2
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Brand
Firm 1
Firm 2
Firm 3
Firm 4
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