Session One Flashcards
Marketing Plan
- Executive Summary
- The Challenge
- Situation Analysis
- Objectives
- Alternative Marketing Strategies
- Selected Marketing Strategy
- Financial Documents (Budget)
- Implementation, monitors, and controls
- Contingency Plans
Marketing Plan is an…
argument. If (analysis) then (objectives/strategy)
What is Product Management?
Management of the whole life of a product, service, or experience
From conception to launch and then maintaining or changing it or divesting
White Space Identification > Ideation > Incubation > Product Development > Roll-Out
Who is a Product Manager (PM)?
A PM is a person with overall, cross-functional, responsibility (i.e. a mini-CEO) with everything associated with a single product or a product line (e.g. a shampoo line)
Product (sometimes: Brand) managers are central coordinators of all marketing (and non-marketing) activities for their brand and are responsible for developing and implementing the marketing plan.
What does a PM do>
- Planning Activities: market analysis, trend monitoring, customer surveys, forecasts, etc.
- Operational Activities and Coordination: with other departments, agencies, customer channels, pricing and promos
- Marketing Plan ! development and implementation
aka add value to the product
Brand Manager vs Product Manager
Brand Manager can be the same as a product manager or could be focused on brand equity or considered a senior product manager
Marketing Manager vs Product Manager
PM
* Narrow focus on 1 product or product line
* Tactical, operational, day-to-day “fighting”
* Strategic vision limited to the specific product
* Short-term focus: annual or shorter
MM
* Broad focus on a large portfolio of the company’s products
* Strategic, vision, “win the war” for the full portfolio of products
* Long-term focus
How Marketing adds value
- Value Proposition (VP): set of benefits that satisfy types of needs
- Customer Value (CV): net sum of benefits minus costs
»> Costs: Money, Time, Energy, etc.
Total Product Concept
(see image)
Generic Product > Expected Product > Augmented Product > Potential Product
Levels of Product Offerings
> Augmented/Potential: additional consumer services and benefits (add-ons, guarantees, servicing)
Actual: the attributes that combine to deliver core product benefits aka what it is (physical product, design, brand)
Core: the need or want that the product satisfies
Latent
hidden, dormant needs that customers are not aware of wanting/needing
Fundamental forms of customer utility
> Economic / Financial Value: value for money, product potential to hold or appreciate value
Utilitarian Value (Primary): basic functionalities (e.g. car gets you from A to B) also includes quality, material, safety, running costs
Hedonic value (Secondary): pleasure of use, sensorial, atmospherics are important in retailing and services
Symbolic / Expressive: what a product / brand says about you (brand name)
Psychological: individual benefits, comfort, protection, etc.
Other / Emerging: CSR, ethics, humanitarianism
Who can help the PM add value to the product?
> Conceptual planners & Market Research, R&D, Production, Operations and Logistics, Finance, Sales,
Customers (trade) and customers (final = retail);
A PM could be seen as:
> an orchestrator or conductor in a symphony orchestra
a diplomat;
speaks to (and translates between) several languages
a CEO for her/his brand
What is Marketing Planning?
the methods and processes of allocating marketing resources to achieve marketing (business) objectives
» Is about building an argument
What is the Marketing Plan?
a written document containing the guidelines for the business centre’s marketing programs and allocations over the planning period
» Is an argument
Purpose of a Marketing Plan
- Defines the current business situation and problems/opportunities
- Establishes objectives
- Defines the strategies and programs necessary to achieve the objectives
- Pinpoints responsibility for achieving product objectives
- Encourages careful and disciplined thinking
- Established a customer/competitor orientation
PM is the communication hub
Different Tribes and the role of the PM
> Every organization has many different “tribes” fighting for their own agendas and competing for scarce company resources. (R&D, sales, legal, finance, etc.)
A PM is a mini-CEO and has to manage everyone)
In addition, there are “external” constituents: agencies, customers, partners, etc.
PM and MP
> Building the annual MP is probably the most important activity of a PM.
> Usually in November (although not a rule)
Frequent revisions: on average 45 working days/year
Who contributes data? (External & internal marketing research)
Marketing Plan Sequence
- Update Historical Data
- Collect Current Situtation Data
- Data Analysis
- Develop Objectives, Strategies, Programs
- Develop financial documents and communicate to all divisions
- Negotiate final plan
- Measure progress towards objectives
- Audit
Types of Objectives: Growth vs Efficiency
Growth: % in sales or market share (Ansoff Matrix)
» via market development, market penetration, product development, or diversification
Efficiency (short-term profits) $$:
» via cutting costs (denominator management) or increasing outputs (numerator management)
Objectives vs Strategies vs Tactics
> Objectives: “Where do we want to go”
— growth vs efficiency, branding, marketing, etc.
Strategies: “How are we going to get there”
— specific ways to achieve objectives (using 4 Ps)
Tactics: specific actions translated from the strategy
Generic Strategies (4 Ps)
- Product: change mix, change design, add/modify products
- Pricing: penetration or skimming, discounts, changes
- Promotion: types of promotions, increased selected media
- Distribution (Place): change channels., improve retail service
Do Customer Strategies Vary over the PLC stages?
- Customer acquisition (market development & market penetration)
- Customer expansion (increase usage, cross-sell)
- Customer retention (CRM, loyalty, 80/20 rule) - efficiency
- Customer deletion (80/20) - efficiency
