Potential product
Download
1 / 104

Market Based business models for powerpoint presentations - PowerPoint PPT Presentation


  • 870 Views
  • Uploaded on

100 market based business models, diagrams and charts for powerful business presentations. Content: Custoner Value, Shareholder Value, Market-based-Strategies, Market Potential, Value Creation, Economic Benefits, Market Segmentation, Targeting, Competitive Advantage, Industry Analysis, Prisoners Dilemma, Switch Cost, Pricing, Skimming, Penetration, Channel Management, Push-Pull, Portfolio Analysis, Life Cycle Analysis, Market Performance, Sales Forecast, Four P's, Competitor Analysis, Transaction Marketing, Consumer Behavior, Mass Customization, Cluster Theory, Value Chain, Marketing Information, Brand Management, AIDA, Marketing Plan, SWOT, New Age Pricing, Pruducer/Custormer Gap, Mass Production/nMore business diagrams to download on http://www.drawpack.com your visual business knowledge

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Market Based business models for powerpoint presentations' - drawpack


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

Potential product

Augmented product

Expected product

Generic product

Core benefit

Market Based Management...

100 Slides

Powered by www.drawpack.com. All rights reserved.


Slide2 l.jpg

Key Words...

Customer Value – Shareholder Value – Market-based-Strategies – Market Potential – Value Creation – Economic Benefits – Market Segmentation – Targeting – Competitive Advantage – Industry Analysis – Prisoners Dilemma – Switch Cost – Pricing – Skimming – Penetration – Channel Management – Push-Pull – Portfolio Analysis – Life Cycle Analysis – Market Performance – Sales Forecast – Four P’s – Competitor Analysis – Transaction Marketing – Consumer Behavior – Mass Customization – Cluster Theory – Value Chain – Marketing Information – Brand Management – AIDA – Marketing Plan – SWOT – New Age Pricing – Producer/Customer Gap – Mass Production


How to underwhelm customers and shareholders l.jpg

Poor Understanding of Customers and Competition

Pressure for Short-Run Results

Unfocused Competitive Position

Stagnant Shareholder Value

Me-Too

Customer Value

Accounting Maneuvers Drive Financial Results

Excessive Customer Turnover

Sporadic Business Unit Profit

Market Share Instability

High Cost of Customer Retention and Acquisition

How to Underwhelm Customers and Shareholders


Marketing knowledge and market orientation l.jpg

100

Business Profitability

90

Customer Retention

80

Market Orientation Score (0-100)

Market Orientation

70

60

Marketing Knowledge

50

Bottom

Middle

High

Marketing Knowledge

Marketing Knowledge and Market Orientation


Fundamental market based strategies and profitable growth l.jpg

Strategies to Grow Market Demand

Strategies to Increase Market Share

Strategies to Grow Customer Purchases

Net Marketing Contribution

Market Demand

Market Share

Revenue per Customer

Variable Cost per Customer

Marketing Expenses

=

-

-

X

X

Strategies to Lower Variable Cost per Customer

Strategies to Enter or Exit Markets

Strategies to Increase Marketing Efficiency

Fundamental Market-Based Strategiesand Profitable Growth


Sales based vs market based organizational structure l.jpg

Sales-Based Structure

Market-Based Structure

Earthmoving Equipment Division

Earthmoving Equipment Division

Sales Organization

Mining Marketing Unit

Construction Marketing Unit

Dealer Sales

Mining Dealers

Mining Dealers

Direct Sales

Construction Dealers

End-User Market

Mining and Construction

End-User Market Mining

End-User Market Construction

Sales-Based vs. Market-BasedOrganizational Structure


Maximum market potential and current market demand l.jpg

Maximum Number of Potential Customers

Not Affordable

Lack Benefits

Untapped Market Opportunity

Unable to Use

Not Available

Not Aware

Current Market Demand

Developed Market

Maximum Market Potential andCurrent Market Demand


Customer adoption and market development l.jpg

100%

Full Market Development

80%

60%

Market Development Gap

40%

20%

Mainstream Market

Early Market

0%

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

Customer Adoption and Market Development


Economic benefits and value creation l.jpg

Price Paid

Amazon.com lowers purchase price with the on-line purchase of books.

Acquisition Costs

American Hospital Supply reduces a hospital’s cost with a computerized customer order program.

Usage Costs

Sealed Air reduces labor cost in packaging with AirCap.

Total Cost of Purchase

Maintenance Costs

Saturn lowers the cost of repair and insurance through module product design.

Ownership Costs

GE Capital works with customers to create affordable ownership.

Disposal Costs

Rohm-Haas’s Kathon MWX cuts cost of disposal of machine fluid waste in half.

Economic Benefits and Value Creation


Fundamental forces that shape differences in customer needs l.jpg

Consumer Market Customer Needs

Demographic Forces

Lifestyle Forces

Usage Behaviors

- Age

- Income

- Marital Status

- Education

- Occupation

- Attitudes

- Values

- Activities

- Interests

- Political View

- Quantity

- Time of Use

- Personal

- Social

- Frequency of Use

Fundamental Forces That Shape Differencesin Customer Needs


Fundamental forces that drive differences in business to business customer needs l.jpg

Business-to-Business Customer Needs

Firmographic Forces

Business Culture

Usage Behaviors

- Number of Employees

- Sales Volume

- Number of Locations

- Years in Business

- Financial Situation

- Business Sophistication

- Growth Orientation

- Innovativeness

- Technology

- Decision Making

- Application

- Quantity

- Time of Purchase

- Frequency of Purchase

- Users

Fundamental Forces That Drive Differencesin Business-to-Business Customer Needs


Market segmentation of the small business market l.jpg

Growth-Oriented Entrepreneurs

Core Business Need

Ways to invest and grow

Firmographics

Medium size

More sophisticated

Higher in education

Ongoing financial plan

Purchase Behavior

Products that enhance productivity

High revenue per customer

Willing to buy value-added solutions

Value Proposition

Solutions that help you grow your business

Cost-Focused Sustainers

Core Business Need

Ways to continue and save

Firmographics

Small in sales / employees

Less sophisticated

Lower in education

Limited or no financial plan

Purchase Behavior

Products that lower cost

Low revenue per customer

Confused by value-added solutions

Value Proposition

Solutions that saves your business money

Growth-Oriented

Cost-Focused

Market Segmentationof the Small Business Market


Forces that shape segment attractiveness l.jpg

Segment Attractiveness

Market Growth

Competitive Intensity

Market Access

- Market Size

- Growth Rate

- Market Potential

- Number Of Companies

- Ease of Entry

- Substitutes

- Customer Familiarity

- Channel Access

- Company Fit

Forces That Shape Segment Attractiveness


Segmentation hierarchy mass market to mass customization strategies l.jpg

Mass Market Approach

Large Segment Strategy

Adjacent Segment Strategy

Multi-segment Strategy

Small Segment Strategy

Niche Segment Strategy

Mass Customization Strategy

Segment A

Segment A1

Segment A

Segment A

Segment A2

Segment A3

Segment A4

Segment A5

Segment B

Segment B

Segment B1

Segment B2

Segment B3

Segment C

Segment C

Segment C1

Segment C2

Segment C2

Segmentation Hierarchy: Mass Market toMass Customization Strategies


Competitive forces that shape competitive position and profitability l.jpg

Competitive Position and Profitability

Industry Forces

Competitor Benchmarking

Competitive Advantage

- Competitor Intelligence

- Competitor Analysis

- Competitive Benchmarking

- Market Entry/Exit

- Buyer/Supplier Power

- Substitutes/Rivalry

- Cost Advantage

- Quality Advantage

- Marketing Advantage

Competitive Forces That Shape Competitive Position and Profitability


Industry analysis industry forces and profit potential l.jpg

Competitive Environment

Industry Forces

Barriers to Entry

Barriers to Exit

Buyer Power

Supplier Power

Substitutes

Competitive Rivalry

Unfavorable

Low

High

High

High

Many

Intense

Favorable

High

Low

Low

Low

None

None

The more favorable the forces that shape a market’s competitive environment, the greater a business’s profit potential

Profit Potential

More favorable competitive environment

Less favorable competitive environment

Unfavorable

Favorable

Competitive Environment

Industry Analysis: Industry Forces andProfit Potential


Performance impact of price rivalry and prisoner s dilemma l.jpg

Competitor’s Marketing Strategy

Business’s Marketing Strategy

Hold Price

Cut Price 5%

Market Share = 10%

Volume = 1 million units

Price = $100 per unit

Margin = $40 per unit

Total Cont. = $40 million

Market Share = 8%

Volume = 800’000 units

Price = $100 per unit

Margin = $40 per unit

Total Cont. = $32 million

Hold Price

Market Share = 10%

Volume = 1 million units

Price = $95 per unit

Margin = $35 per unit

Total Cont. = $35 million

Market Share = 12%

Volume = 1.2 million units

Price = $95 per unit

Margin = $35 per unit

Total Cont. = $42 million

Cut Price 5%

Performance Impact of Price Rivalry and Prisoner‘s Dilemma


Major sources of competitive advantage l.jpg

Competitive Advantage

Cost Advantage

Differentiation Advantage

Marketing Advantage

- Variable Costs

- Marketing Expenses

- Operating Expenses

- Product Differentiation

- Service Quality

- Brand Reputation

- Distribution

- Sales Effort

- Brand Awareness

Major Sources of Competitive Advantage


Ignition switch cost advantage due to scale and scope effects l.jpg

Scale Effect

Scope Effect

Cost per Unit

Cost per Unit

C1

Auto-mobiles

Motor-cycles

Lawn-mowers

Snow Blowers

Pumps

C2

Production Capacity

Product Breadth

Ignition Switch Cost Advantage Due to Scale and Scope Effects


Product price position marketing effort and market share l.jpg

Product Differentiation

Price

Product Breadth

Sales Force

Physical Distribution

Retailing & Merchandising

Market Share

Product Position

Marketing Effort

=

X

Customer Support

Service Quality

Media Advertising

Sales Promotion

New Products

Brand Image

Product-Price Position, Marketing Effort,and Market Share


Core elements of product management strategy l.jpg

Product Management Strategies

Product Positioning and Differentiation

Product Line Positioning and Extension Strategies

New Product Development

- Low Price/Cost of Purchase

- Product Differentiation

- Service/Brand

- Product Line Positioning

- Product Line Extensions

- Product Bundling

- New Product Sales

- New Product Innovation

- Development Process

Core Elements ofProduct Management Strategy


Differentiation and customer value i l.jpg

Service Differentiation

Brand Differentiation

Product Differentiation

Product Benefits

Product Benefits

Product Benefits

Customer Value

Customer Value

Customer Value

Price

Price

Price

Service Benefits

Service Benefits

Service Benefits

Nonprice Costs

Nonprice Costs

Nonprice Costs

Brand Benefits

Brand Benefits

Brand Benefits

Total Benefits

Total Cost

Total Benefits

Total Cost

Total Benefits

Total Cost

Differentiation and Customer Value I


Differentiation and customer value ii l.jpg

Product Benefits

Customer Value

Product Differentiation

Price

Service Benefits

Service Differentiation

Transaction Costs

Brand Differentiation

Brand Benefits

Low-Price Position

Total Benefits Derived from Product Position

Total Cost of Obtaining These Benefits

Lower Transaction Costs

Differentiation and Customer Value II


Pricing differentiation and customer value l.jpg

  • Customers

  • Need / Benefits

  • Price Sensitivity

  • Demand / Growth

  • Market-Based Pricing

  • Economic Value Pricing

  • Perceived Value Pricing

  • Segment Pricing

  • Impacts

  • Customer Value

  • Market Share

  • Profitability

  • Competitors

  • Number / Entry

  • Positioning

  • Objectives

Market Situation

  • Positioning

  • Market Share

  • Differentiation

  • Cost / Supply

  • Cost-Based Pricing

  • Commodity Pricing

  • Cost Leader Pricing

  • Competitive Bid Pricing

Pricing Differentiation and Customer Value


Market based value pricing l.jpg

Perceived Value vs. Costs

Total Cost of Ownership

Product Benefits

Price

Perceived Value

Economic Value

Price

Price

Maintenance

Service Benefits

Cost

Perception

Use

Maintenance

Use

Nonprice Costs

Brand Benefits

Acquisition

Acquisition

Competitor’s Product

Business’s Product

Relative Benefits

Relative Cost

Market-Based Value Pricing


Price elasticity and performance l.jpg

Raise Price

Unit Volume

Decrease

Sales Revenue

Increase

Unit Margin

Increase

Unit Contribution

Increase

Inelastic (<-1)

Lower Price

Decrease

Decrease

Decrease

Increase

Hold Price

Unity (=-1)

Price Elasticity

No change

Maximum

No change

No change

Raise Price

Decrease

Decrease

Increase

Inc/Dec*

Elastic (>-1)

Decrease

Lower Price

Increase

Increase

Inc/Dec*

* The total contribution could increase or decrease, depending on the level of elasticity and unit margin.

Price Elasticity and Performance


Skim pricing l.jpg

Skim Pricing

Price

Favorable Conditions

Considerable Differentiation

Quality-Sensitive Customers

Sustainable Advantage

Few Competitors

Few Substitutes

Difficult Competitor Entry

Dollars per Unit

Cost

Time

Skim Pricing


Penetration pricing l.jpg

Penetration Pricing

Favorable Conditions

No/Limited Differentiation

Price-Sensitive Customers

No Sustainable Advantage

Many Competitors

Many Substitutes

Easy Competitor Entry

Price

Dollars per Unit

Cost

Time

Penetration Pricing


Break even volume for a given price strategy l.jpg

Total Revenue

35

30

Total Costs

25

$ Millions

20

15

Fixed Expenses*

10

5

0

50

100

150

200

Break-Even Volume

(90,000)

Units Sold (‘000)

Profit

Loss

* Fixed Expenses = Marketing Expenses and Other Direct Expenses

Break-Even Volume for a Given Price Strategy


Alternative channel systems l.jpg

Alternative Channel Systems

Direct

Channel Systems

Mixed

Channel System

Indirect

Channel Systems

Channel Intermediaries

Target Market Customers

  • Direct Channel Systems: Provide alternative direct channel and sales systems that require the business to retain ownership (title) of products sold and responsibility for delivery to customers and value-added functions desired by customers.

  • Indirect Channel Systems: Provide varying degrees of sales and value-added functions while taking ownership and responsibility for delivery to target customers or other intermediaries.

  • Mixed Channel Systems: Provide direct sales contact and technical support while the actual purchase is made at a channel intermediary who has taken title (ownership) of the products being sold.

Alternative Channel Systems


Alternative customer channel systems l.jpg

Manufacturers

Direct

Channel Systems

Indirect

Channel Systems

Direct Sales

On-Line Marketing

Direct Marketing

Tele- marketing

Reps/

Agents

Reps/Agents

Wholesalers

Retailers

Customer Markets

Alternative Customer Channel Systems


Message reinforcement strategies l.jpg

Pulsing

Heavy-Up

250

250

200

200

150

150

Gross Rating Points

Gross Rating Points

100

100

50

50

0

0

1

5

9

13

17

21

25

29

1

5

9

13

17

21

25

29

Weeks

Weeks

100%

100%

80%

80%

60%

60%

Ad Awareness

Ad Awareness

40%

40%

20%

20%

0%

0%

1

5

9

13

17

21

25

29

1

5

9

13

17

21

25

29

Weeks

Weeks

Message Reinforcement Strategies


Push pull communications and customer response l.jpg

Customer Response

Customer

Pull

Customer

Push

  • Market Coverage

  • Availability

  • Stockouts

  • Distributor Push

  • Merchandising

  • Marketing Effort

  • Customer Preference

  • Awareness

  • Attraction

  • Customer Loyalty

  • Commitment

  • Search Effectiveness

Customer Pull Communications

Customer Push Communications

Communications Mix

Advertising

Sales Promotions

Catalogs

Direct Marketing

Telemarketing

Electronic Marketing

Public Relations

Push-Pull Communicationsand Customer Response


Strategic market planning process l.jpg

Tactical Marketing Strategy and Performance Plan

Portfolio Analysis and Strategic Market Plan

Business Performance

Market Attractiveness

Competitive Advantage

  • - Share Position

  • Sales Growth

  • Profitability

- Market Forces

- Competitive Intensity

- Market Access

- Differentiation

- Cost

- Marketing

Strategic Market Planning Process


Factors that shape market attractiveness l.jpg

Market Attractiveness

Market Forces

Competitive Intensity

Market Access

  • Market Size

  • Growth Rate

  • Buyer Power

  • Customer Loyalty

  • Number of Competitors

  • Price Rivalry

  • - Ease of Entry

  • - Substitutes

  • Customer Familiarity

  • Channel Access

  • - Sales Requirements

  • - Company Fit

Factors That Shape Market Attractiveness


Portfolio analysis and strategic market plans l.jpg

Very Attractive

Offensive

(Grow)

Defensive

(Protect)

Offensive(Grow)

Defensive(Protect)

Offensive(Entry)

Offensive

(Grow)

Defensive

(Protect / Harvest)

Offensive

(Grow)

Defensive

(Protect / Focus)

Offensive

(Grow)

Defensive

(Protect / Focus)

Defensive(Divest or Harvest)

Defensive(Divest or Harvest)

Defensive(Protect or Harvest)

Very Unattractive

Market Attractiveness

Very Weak

Very Strong

Competitive Advantage

Protect Invest to protect or hold a competitive advantage. Businesses often fail to invest in hold strategies, and the result is an erosion of competitive advantage.

Grow Invest to improve or grow competitive advantage. In an underdeveloped or emerging market, this can also mean to invest in order to grow the market, and hence, its attractiveness.

Focus Selectively narrow market focus to profitable segments or niches within a segment in order to capture profits while limiting the resources committed to this market.

Harvest Adjust prices and marketing expenses to gradually exit the market while attempting to maximize profits during this gradual exit.

Entry Invest to enter an attractive market to establish a desired competitive advantage. This strategy could also require investment to accelerate the growth of a new or underdeveloped market.

Divest Quick divestment from a market. When there are no short-term profits to be gained with a harvest strategy, an immediate exit strategy is appropriate.

Portfolio Analysis and Strategic Market Plans


Offensive and defensive strategic market plans l.jpg

Business Performance

Share Position

Sales Revenue Growth

Profit Performance

Offensive Strategic Market Plans

Defensive Strategic Market Plans

  • Penetrate or Grow Existing Markets

  • Enter or Develop New Markets

  • Protect or Reduce Focus within Existing Markets

  • Harvest or Divest Existing Markets

Offensive and Defensive Strategic Market Plans


Product life cycle and offensive and defensive marketing strategies l.jpg

Defensive

Offensive/ Defensive

Defensive

Offensive/ Defensive

Sales Revenue

Offensive

Offensive

Offensive

Emerging Market

Early Growth

Rapid Growth

Late Growth

Maturing Market

Mature Market

Declining Market

Product Life Cycle andOffensive and Defensive Marketing Strategies


Offensive strategic market plans l.jpg

Offensive

Strategic Market Plans

Market Penetration Strategies

New Market Entry Strategies

  • Grow Market Share

  • Grow Customer Purchases

  • Enter New Market Segment

  • Grow Market Demand

  • Related New Market Entry

  • Diversified New Market Entry

  • Enter New Emerging Market

  • Develop New Market Potential

Offensive Strategic Market Plans


Defensive strategic market plans l.jpg

Defensive

Strategic Market Plans

Protect Market Position

Exit Market Position

  • Protect Market Share

  • Build Customer Retention

  • Reduced Focus

  • Harvest Price Strategy

  • Harvest Resource Strategy

  • Divest Market Position

Defensive Strategic Market Plans


Portfolio positions and defensive strategic market plans l.jpg

Very Attractive

Protect

Protect

Protect or Harvest

Protect or Focus

Protect or Focus

Market Attractiveness

Harvest or Divest

Harvest or Divest

Protect or Harvest

Very Unattractive

Very Weak

Very Strong

Competitive Advantage

Portfolio Positions andDefensive Strategic Market Plans


Major components of a situation analysis l.jpg

Situation Analysis

Market Demand

Market Demand

Market Demand

Market Demand

Market Demand

  • Sales

  • Customer satisfaction

  • Margins/Profit

  • Size and Growth

  • Potential

  • Environment

  • End Users

  • Intermediaries

  • Nonconsumers

  • Structure

  • Gap Analysis

  • Substitutes

  • Market Share

  • Price / Quality

  • Cost / Value

Major Components of a Situation Analysis


A customer based model of net profits l.jpg

Market Demand (Customers)

Customer Volume

Market Share (Percent)

Total Contribution

Revenue per Customer

Net Marketing Contribution

Margin per Customer

Variable Cost per Customer

Net Profits (before taxes)

Marketing Expenses

Operating Expenses

A Customer-Based Model of Net Profits


A customer based model of return on assets l.jpg

Market Demand (Customers)

Customer Volume

Current Assets

Market Share (Percent)

Total Contribution

Revenue per Customer

Net Marketing Contribution

Variable Cost per Customer

Net Profits

(before taxes)

Marketing Expenses

Margin per Customer

Fixed Expenses

Operating Expenses

Accounts Receivable

Return on Assets

Inventory

Total Assets

Cash

Plant and Equipment

A Customer-Based Model of Return on Assets


Market operational and profit performance l.jpg

Market Performance

Operational Performance

Profit Performance

  • Market Metrics

  • Market Share

  • Customer Satisfaction

  • Customer Retention

  • Product Awareness

  • Service Quality

  • Operational Merits

  • Margin (% of sales)

  • Overhead (% of sales)

  • Inventory Turnover

  • Accts. Rec. (days outstanding)

  • Capacity Utilization

  • Profitability Merits

  • Return on Assets

  • Return on Equity

  • Earnings per Share

  • Economic Value Added

  • Price-Earnings Ratio

X

=

Market, Operational and Profit Performance


Ge mckinsey multifactor portfolio matrix l.jpg

INDUSTRY ATTRACTIVENESS

Manage Selectively for Earnings

Invest

Invest

Manage Selectively for Earnings

Harvest or Divest

Invest

BUSINESS STRENGTH

Manage Selectively for Earnings

Harvest or Divest

Harvest or Divest

GE / McKinsey Multifactor Portfolio Matrix


Market potential sales potential and sales forecast l.jpg

Sales Forecast

Sales Potential

Market Potential

Total Population

Market Potential, Sales Potential,and Sales Forecast


The r d effort portfolio l.jpg

SELECTIVE EMPHASIS

HEAVY EMPHASIS

HEAVY EMPHASIS

LIMITED SUPPORT

SELECTIVE EMPHASIS

HEAVY EMPHASIS

MARKET OPPORTUNITY

LIMITED SUPPORT

LIMITED SUPPORT

SELECTIVE EMPHASIS

LOW

LOW

MODERATE

MODERATE

HIGH

HIGH

MARKET OPPORTUNITY

The R&D Effort Portfolio


When to use a penetration or skimming strategy for pricing new products l.jpg

Dimension

High

Low

Level of Desire in Market

Distinctive

Similar

Distinctiveness from Competitive Products

Penetration Strategy

Skimming Strategy

Important

Not Important

Importance of Price to Market

Easy

Not Easy

Ease of Duplicating Product

Gradual

Fast

Return on Investment Objective

When to Use a Penetration or Skimming Strategy for Pricing New Products


Strategy decision areas organized by the four ps l.jpg

Promotion

  • Objectives

  • Promotion blend

  • Sales people, Kind, Number Selection, Training, Motivation

  • Advertising Targets, Kinds of ads, Copy thrust, Prepared by whom

  • Sales promotion

  • Publicity

Product

Place

Price

  • Physical good

  • Service

  • Features

  • Quality level

  • Accessories

  • Installation

  • Instructions

  • Warranty

  • Product lines

  • Packaging

  • Branding

  • Objectives

  • Channel type

  • Market exposure

  • Kinds of middlemen

  • Kinds and locations of stores

  • How to handle transporting and storing

  • Service levels

  • Recruiting middleman

  • Managing channels

  • Objectives

  • Flexibility

  • Level over product life cycle

  • Geographic terms

  • Discounts

  • Allowances

Strategy Decision AreasOrganized by the Four Ps


Strategy planning for product l.jpg

Target market

Product

Place

Promotion

Price

Package

Brand

Product idea

Physical good / service

Features

Quality level

Accessories

Installation

Instructions

Warranty

Product line

Protection

Promotion

(or both)

Type of brand

Individual or family

Manufacturer or dealer

Strategy Planning for Product


Product classes l.jpg

Products

Industrial products

Consumer products

Installations

Staples

Impulse products

Emergency products

Convenience products

Accessories

Farm products

Natural products

New unsought

Regularly unsought

Homogeneous

Heterogeneous

Shopping products

Raw materials

Component parts

Component materials

Components

Specialty products

Professional services

Unsought products

Staples

Impulse products

Emergency products

Supplies

Product Classes


New product development process l.jpg

Idea evaluation

Screening

Idea generation

Rough ROI estimate

Concept testing

Rough ROI verification

Development

Idea evaluation

R&D

Build model

Test in market

ROI estimate

Revise product

Finalize product

Finalize marketing plan

Final ROI estimate

Start production and marketing plan

New-Product Development Process


International marketing opportunities l.jpg

Product

Same

Adaptation

New

Same needs and use conditions (McDonald’s usual strategy)

Basically same needs and use conditions (McDonald’s strategy with beer in Germany)

Basically same needs, but different incomes and / or applications (street vendor with low-cost hamburgers)

Same

Promotion

Different needs but same use conditions (bicycles)

Different needs and use conditions (clothing)

Different needs and different incomes and / or applications (hand-powered washing machines)

Adaptation

International Marketing Opportunities


Customer and competitor orientations l.jpg

Competitor emphasis

Minor

Major

Competitor-centered

Self-centered

Minor

Competitor emphasis

Customer-oriented

Market-driven

Major

Customer and Competitor Orientations


Efficiency vs effectiveness l.jpg

Strategic management

Effective

Ineffective

1

2

Thrive

Die slowly

Efficient

Operational management

3

4

Die quickly

Survive

Inefficient

Efficiency vs. Effectiveness


Approaches to competitor analysis l.jpg

Industry Analysis

Building Competitive Advantage

Industry Mapping

Databases

Desk Research

Benchmarking

Critical Success Factors

Internal Information

Market Research

Value Chain Analysis

Competitor Profiling

Special Competitor Studies

Approaches to Competitor Analysis


Developing the organization s core competences l.jpg

Extending the base

What core competences do we need to be developed so that the organization’s current position is best protected and/or extended?

Uncharted waters

What core competences need to be developed in order to compete in the new and developing markets which offer the greatest future potential?

New

Core Competences

Good housekeeping

How can better use be made of the organization’s current core competences?

Moving into new areas

What new products or services can be developed by rethinking or reallocating the existing core competences?

Existing

Existing

New

Markets

Developing the Organization‘s Core Competences


The nine price quality strategies l.jpg

Price

Low

Medium

High

1

2

3

Cheap-value strategy

Out-of-step strategy

Exploitative strategy

Low

6

4

5

Above average value strategy

Product quality

Middle-of-the- road strategy

Overcharging strategy

Medium

7

8

9

Superb value strategy

High-value strategy

Premium strategy

High

The Nine Price / Quality Strategies


Relationship between service levels and costs l.jpg

$

Total costs

Transportation, order processing and inventory carrying costs

Cost

Cost of lost sales

0

100%

Level of customer service

Relationship Between Service Levels and Costs


Setting customer service levels l.jpg

$

Revenue from service

Maximum profit contribution

Increase in costs, sales revenue or profit

Distribution costs

Profit curve

0

93

99

%

Service level

Setting Customer Service Levels


Marketing excellence framework l.jpg

Marketing Strategy

Branding

Product Innovation

Business Performance

Supply Chain

Manufacturing

Customer Development

Quality Strategy

Marketing Excellence Framework


Consequences of strategic and tactical implementation l.jpg

Strategy / tactic

Appropriate

Inappropriate

Success

Possible short-term success – but ultimately failure

Excellent

Marketing implementation

Failure

Trouble or

failure

Proof

Consequences of Strategic and Tactical Implementation


The transition to rm l.jpg

Emphasis on all six market domains

Relationship marketing

Emphasis on customer market domain

Transaction marketing

Functionally based marketing

Cross-functionally based marketing

The Transition to RM


The rm multiple markets model l.jpg

Internal Markets

Supplier & Alliance Markets

Referral Markets

Customer Markets

Influencer Markets

Recruitment Markets

The RM Multiple Markets Model


Types of consumer buyer behavior l.jpg

Involvement

Variety-seeking buyer behaviour

Complex buyer behaviour

Many

Differences between brands

Dissonance-reducing buyer behaviour

Habitual buyer behaviour

Few

Types of Consumer Buyer Behavior


Appropriate pricing strategies l.jpg

Skimming strategy

Price leadership

High

Opportunity for value enhancement

‘Follow my leader’

Penetration strategy

Low

High

Low

Opportunity for cost reduction

Appropriate Pricing Strategies


The expanded marketing mix l.jpg

Product

Price

Promotion

Customer Service

Place

People

Processes

The Expanded Marketing Mix


The paradigm of mass production as a dynamic system of reinforcing factors l.jpg

New Products

Long Product Development Cycles

Mass Production Processes

R

Long Product Life Cycles

Low-Cost, Consistent Quality, Standardized Products

Stable Demand

Homogeneous Market

The Paradigm of Mass Production as a Dynamic System of Reinforcing Factors


The new paradigm of mass customization as a dynamic system feedback loop l.jpg

Product Technology

Process Technology

New Products

R

R

Short Product Development Cycles

Mass Customization Processes

R

Short Product Life Cycles

Low-Cost, High Quality, Customized Products

Demand Fragmentation

Heterogeneous Markets

The New Paradigm of Mass Customization as a Dynamic System Feedback Loop


Six types of modularity for the mass customization of products and services l.jpg

Component – Sharing Modularity

Component-Swapping Modularity

Cut-to-Fit Modularity

Mix Modularity

Sectional Modularity

Bus Modularity

Six Types of Modularity for the Mass Customization of Products and Services


Product process change matrix l.jpg

MASS CUSTOMIZATION

INVENTION

DYNAMIC

PRODUCT CHANGE

MASS PRODUCTION

CONTINUOUS IMPROVEMENT

STABLE

DYNAMIC

STABLE

PROCESS CHANGE

Product-Process Change Matrix


Product process change matrix the mass production axis l.jpg

MASS CUSTOMIZATION

INVENTION

DYNAMIC

PRODUCT CHANGE

MASS PRODUCTION

CONTINUOUS IMPROVEMENT

STABLE

DYNAMIC

STABLE

PROCESS CHANGE

Product-Process Change Matrix:The Mass Production Axis


Mass customized products stable processes producing dynamic flow of products l.jpg

PROCESS CAPABILITIES

PROCESS CAPABILITIES

PRODUCT 3 VOLUMES

PRODUCT 2 VOLUMES

PRODUCT 1 VOLUMES

PRODUCT VOLUMES

TIME

Mass-Customized Products: Stable Processes Producing Dynamic Flow of Products


Mass customized products shortening process life cycles l.jpg

ENTERPRISE

ENTERPRISE CAPABILITIES AND RESOURCES

PROCESS 3 CAPABILITIES

PROCESS 2 CAPABILITIES

PROCESS 1 CAPABILITIES

PROCESS CAPABILITIES

PRODUCT N VOLUMES

PRODUCT VOLUMES

TIME

Mass-Customized Products:Shortening Process Life Cycles


Product process change matrix virtual enterprise flow l.jpg

INVENTION

MASS CUSTOMIZATION

DYNAMIC

PRODUCT CHANGE

MASS PRODUCTION

CONTINUOUS IMPROVEMENT

STABLE

DYNAMIC

STABLE

PROCESS CHANGE

Product-Process Change Matrix:Virtual Enterprise Flow


Four stages of national competitive development l.jpg

FACTOR DRIVEN

INVESTMENT DRIVEN

INNOVATION DRIVEN

WEALTH DRIVEN

  • Existing basic factors

  • Abundant, cheap and unqualified labour

  • Low investments

  • Building general factors

  • Cheap and qualified labour

  • Heavy basic investments

  • Building advanced factors

  • Costly and highly qualified labour

  • Productivity and innovation investments

  • Acquired advantages

  • Stagnant rate of innovation

DECLINE?

Relaunched

by the stimulation of innovation

Four Stages of National Competitive Development


Cluster theory l.jpg

Context for Firm Strategy and Rivalry

  • A local context that encourages appropriate forms of investment and sustained upgrading

  • Vigorous competition among locally-based rivals

Factor (Input) Conditions

Demand Conditions

  • Factor (input) quantity and cost

  • Sophisticated and demanding local customer(s)

  • Customer needs that anticipate those elsewhere

  • Unusual local demand in specialized segments that can be served globally

Related and Supporting Industries

  • natural resources

  • human resources

  • capital resources

  • physical infrastructure

  • information infrastructure

  • scientific and technological infrastructure

  • Presence of capable, locally-based suppliers

  • Presence of competitive related industries

  • Factor quality

  • Factor specialization

Cluster Theory


Management of industrial customer s portfolios i l.jpg

For a continuous supply case

Existing customer

Prospect

Structural Attractiveness

Structural Attractiveness

Prospects to be cultivated with tenacity while expecting an opening

“hot” prospects justifying a strong investment

Customers justifying an overinvestment

Customers to be kept without over investing

Customers to be kept with minimum investment

Customers to be examined in a selective way

“hot” prospects justifying only a limited investment

Prospects not to be worked on intensively

Development possibilities

Penetration possibilities

Management of Industrial Customer‘s Portfolios I


Management of industrial customer s portfolios ii l.jpg

Case of discontinued supply

Structural Attractiveness

To follow up on a major customer if the deal is not too unfavourable

Major opportunity justifying a major investment

To grasp an excellent deal if the customer is acceptable

To decline and not to be followed

Transaction attractiveness

Management of Industrial Customer‘s Portfolios II


The marketing exchange process i l.jpg

Perform universal marketing functions of buying, selling, transporting, storing, marketing, information, standardization and grading, financing, and risk taking

To overcome discrepancies of quantity and assortment, and to overcome separation of space, time, information, values and ownership

To create form, time, place, and possession utility and direct the flow of need – satisfying goods and services

  • Middlemen

  • Wholesalers

  • Retailers

Too many individual

Customers (heterogeneous demand)

Many individual

Suppliers (heterogeneous supply)

Facilitators

-Ad agencies

-Marketing research firms

-Product testing labs

-Public warehouses

-Transportation specialists

-Financial institutions

The Marketing Exchange Process I


The marketing exchange process ii l.jpg

Raw materials

Components

Finished product

Downstream exchange

Supplier

Upstream exchange

Customer

Wholesaler

Retailer

End user

The Marketing Exchange Process II


The producer customer gap l.jpg

PRODUCTION SECTOR

Specialization and division of labour result in heterogeneous supply capabilities

PRODUCERS

CUSTOMERS

SPACE

Clustered

Few locations

Scattered

Many locations

Time required to bring goods to market

Consumption usually not at time of production (exception: services)

TIME

Don’t know who needs what, where, when, what price

Don’t know what is available from whom, where, when, what price

INFORMATION

Marketing needed to overcome gaps

Value goods and services in terms of costs and competitive prices

Value goods and services in terms of economic utility and ability to pay

VALUES

Hold title to goods which they don’t consume

Want to consume goods which they don’t own

OWNERSHIP

Prefer to produce and sell in large quantities

Prefer to buy and consume in small quantities

QUANTITY

Produce a narrow assortment

Purchase a broad assortment

ASSORTMENT

Heterogeneous demand for form, time, place, possession utility to satisfy needs /wants

CONSUMPTION SECTOR

The Producer – Customer Gap


The value chain l.jpg

Value chain of a computer manufacturer

End users: Individuals, Companies

Component suppliers

Computer manufacturer

Retail outlets

Component Purchasing

R & D

Manufac-turing

Product Design

Marketing

Make or buy?

The Value Chain


Make or buy l.jpg

High

Advantages of Making

Strong control needed

Make

  • Low costs

  • Better quality

  • Unique characteristics

  • Better time management

  • Control of proprietary information

  • Etc…

Moderate control needed

Partnership

Weak control needed

Buy

Low

Low

High

Risks tied to Outsourcing

  • Size, power of producer

  • Technical capacity of buyer

  • Number of transactions involved

  • Etc...

Make or Buy


Market structure actual potential market l.jpg

Potential market (100%)

Total population (100%)

Accessible market (80%)

Qualified market (50%)

Potential market (100%)

Serviced market (20%)

Actual market (2%)

Market Structure: Actual / Potential Market


Market segmentation strategies l.jpg

Need Analysis

FIRM

Program A

MARKET

Program B

Program C

a) Product variety: no segmentation

Need Analysis

FIRM

Segment A

Program for Segment B

Segment B

Segment C

b) Concentrated marketing

Need Analysis

Program for Segment A

Segment A

FIRM

Program for Segment B

Segment B

Program for Segment C

Segment C

c) Multi-segment marketing

Market Segmentation Strategies


Factors affecting the choice of target markets l.jpg

Needs / wants of end-users

Market size / structure

Firm / brand market share, sales projections

Decision-maker preferences and corporate culture

Choice of target markets

Political pressures and lobbying

Resources / capabilities of the firm

Competitive activity

Production / marketing, scale economies

Factors Affecting the Choice of Target Markets


The use of marketing information i l.jpg

Marketing Information System

Data

Information

M. I. S. / M. D. S. S.

Environment

Marketing Manager

Accounting system

Market studies and research system

Target markets

Distribution channels

Competitors

People

Macro-environment

Analysis

Planning

Execution

Control

Accounting system

Marketing models system

The Use of Marketing Information I


The use of marketing information ii l.jpg

Evolution of information needs

1960

Mass marketing

Mass media advertising

Product orientation

1970

1980

Customer orientation

Personalized target communication

Customized marketing

1990

General information

Specific information

Customer equity

The Use of Marketing Information II


The use of marketing information iii l.jpg

The Marketing Information Value Chain

Data collection and transmission

Data management

Customer files

Diary panels

POS scanner

Data interpretation = Information

DB2

Oracle

DB3

Paradox

Marketing-related models

Expert systems:

Salespartner

Coverstory

Decision Support Systems E.I.S.

Conjoint (choice)

MDS (position)

Promoter, ADCAD

Organise

Describe

Recommend

Collect

Represent Explain

The Use of Marketing Information III


Approaches to the study of customer behavior l.jpg

HOMO ECONOMICUS

Rationality: revenue determines consumption level

price determines consumption allocation

Subjective

Product symbolism

Unlimited needs: utility and satisfaction maximization

Degree of involvement

Perfect knowledge of needs and of products to satisfy them

Imperfect knowledge, stochastic choice

Deterministic choice

Limited needs: satisfiers

Product functionality

Irrational action: needs / wants / hopes, dreams,…

Objective

Feelings, emotions / unconscious motivations

HOMO PSYCHOLOGICUS

Approaches to the Study of Customer Behavior


Group influence on buyer appraisal of product and brand l.jpg

Group influence on product category

Weak

Strong

clothes

furniture

watches

automobiles

cigarettes

beer,wine

Strong

Group influence on product brand

cellular phones

instant coffee

color TV

detergent

canned food

garbage bags

Weak

Group Influence on Buyer Appraisalof Product and Brand


Attitude based decision process aida attention interest desire action l.jpg

Cognitive

Awareness, perception

Attention

Interest

Affective

Desire

Action

Preference, choice

Conative

Purchase

Yes / No

Post-purchase reaction (cognitive dissonance)

Attitude Based Decision Process:AIDA (Attention, Interest, Desire, Action)


The 6 step marketing plan l.jpg

Situation (SWOT)

Action plan

1

firm

market

industry

competition

environment

budget allocation:

product

promotion

price

distribution

Objectives

Forecasts

Marketing Plan

sales

market share

market expansion

leadership

satisfaction

quantify:

costs

sales

profits

market share

Strategy

Control

organization structure

measurement tools

check frequency

=> Corrective actions

segment – target

price / quality

product positioning

differentiation

diversification

3

2

5

4

6

The 6 – Step Marketing Plan


Swot analysis i l.jpg

STRENGTHS / WEAKNESSES

Firm, Organization

OPPORTUNITIES / THREATS

Environment, Market, Industry

  • Market share

  • Key account share

  • Growth rate

  • Supply diversity

  • Influence

  • On market

  • Purchasing / selling deadline

  • New products cycles

  • Negotiation power

  • - firm suppliers

  • - customers

  • Market size

  • Key account size

  • Annual growth rate

  • Market diversity

  • Price sensitivity

  • Seasonality

  • Cycles

  • Negotiation power

  • - suppliers

  • - consumers

MARKET

COMPETITION

  • Firm competitivity

  • - Product, service

  • - Profitability, H.R., …

  • Segments invested in

  • Firm’s integration level

  • High-tech vulnerability

  • Competitor types

  • Concentration level

  • Intrants / extrants

  • Market share evolution

  • Vertical / horizontal integration

  • Technology substitution

SWOT Analysis I


Swot analysis ii l.jpg

STRENGTHS / WEAKNESSES

Firm, Organization

OPPORTUNITIES / THREATS

Environment, Market, Industry

  • Firm margins

  • Economies of scale

  • Barriers

  • Production capacity level

  • Global benefits

  • Economies of scale

  • Barriers

  • Production capacity level

FINANCE / BUSINESS

  • Adaptability to change

  • Expertise / Know-How

  • Patent ownership

  • Production technology

  • Maturity / volatility

  • Complexity

  • Differentiation

  • Patents and copyrights

  • Production technology

TECHNOLOGY

SOCIO - POLITICAL

  • Reactivity / Flexibility level

  • Adaptability

  • Agressiveness

  • Working relationships

  • Attitudes / Social trends

  • Laws and regulations

  • Pressure groups

  • Trade union activities

SWOT Analysis II


Sources of market uncertainty l.jpg

What needs might be met by the new technology?

How large is the potential market?

How will needs change in the future?

Market Uncertainty

How fast will the innovation spread?

Will the market adopt industry standards?

Sources of Market Uncertainty


Sources of technological uncertainty l.jpg

Will the new product function as promised?

Will new technology make ours obsolete?

Will the delivery timetable be met?

Technological Uncertainty

Will there be side effects of the product or service?

Will the vendor give high-quality service?

Sources of Technological Uncertainty


A taxonomy of marketing situations based on technological and market uncertainty l.jpg

Better Mousetrap Marketing

High-Tech Marketing

High

Technological Uncertainty

Low-Tech Marketing

High-Fashion Marketing

Low

Low

High

Market Uncertainty

A Taxonomy of Marketing Situations Based on Technological and Market Uncertainty


New age pricing l.jpg

Average Unit Customer Value

Amount of Pricing Discretion

$

Average Unit Cost

Unit Volume

New Age Pricing


Performance based pricing l.jpg

Customer Value

Customer Value

  • P-BP provides more customer value through:

  • Goal alignment

  • Overpay Insurance

  • Clearer information on customer needs & objectives.

Cost

Cost

  • P-BP provides lower vendor cost through:

  • Goal alignment

  • Under payment insurance

  • Less wasted effort for things the customer doesn’t value.

Without Performance – Based Pricing

With Performance – Based Pricing

Performance – Based Pricing


Drawpack diagrams l.jpg
Drawpack Diagrams

Drawpack.comoffers premium Business Diagramsforstudentsand professionals aroundtheglobefortheir personal use.

Pleaseenjoythese Business Diagrams. Youcan send theseslidestoyour personal contactswhomightbeinterested in Business Diagrams.

Forfurtherinformationaboutourservicepleasecontactus: [email protected]

Please find ourmembershipoffer on www.drawpack.com


Usage rights l.jpg
Usage rights

1. Drawpack.com allows the customer an unlimited but not exclusive right to use the provided services, products and diagrams.2. The services, products and diagrams that the customer has received can be copied, edited, saved and used by the customer for their personal and commercial use.3. The customer is prohibited from providing the service, products and diagrams on professional download levels in the area of audio, video and software transmission. This includes providing the services, products and diagrams via download against payment or free of charge. The customer is prohibited providing the services, products and diagrams on internet servers or on websites with public access.

4. The customer is prohibited providing identical or similar services to those provided on www.drawpack.com with the services, products and diagrams.5. Any infringements against the above usage rights will lead to legal action. All rights are reserved to www.drawpack.com


ad