Module 4 presentation1
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Mountain Man Brewing Company is facing challenges as light beer sales increase and premium beer sales decrease. Their Mountain Man Light brand has higher costs but lower prices than their flagship Mountain Man Lager brand. The company must decide whether to invest in growing Mountain Man Light through advertising or risk cannibalizing sales of their core Mountain Man Lager brand.
Module 4 presentation1
- 2. Module – 1
- 3. How to make presentations • Start with the end in mind • Know your audience as well as possible • Content is very important • Keep it simple • Outline your content • Have a clear and sound structure
- 4. How To Speak so that People want to listen “Human voice is the most powerful sound in the world” -Julian Treasure
- 5. 7 deadly sins of speaking • Gossip • Judging • Negativity • Complaining • Excuses • Exaggeration • Dogmatisim
- 6. HAIL •Honesty - to be clear and straight •Authenticity - to be yourself •Integrity - to be your word •Love - to wish them well
- 7. This tool box change the way you Speak Register Pace Timbre Pitch Volume Prosody
- 8. Module – 2
- 10. What is Marketing? • Marketing is Meeting needs Profitably • Definition: Marketing is the activity, Set of Institutions and process for creating, communicating , delivering and exchanging offerings that have value for customers, clients, partners and society at large
- 11. What is Marketed? • Goods • Services • Events • Experiences • Persons • Places • Properties • Organisations • Information • Ideas
- 12. Core Marketing concepts • Need, Want , Demand • Target markets – It is set of customers we decided to do marketing • Positioning • Segmentation – It is dividing a broad target market into subsections • Offerings • Brand – It is an offering from known source • Value – It is combination of Quality, Service and Price • Satisfaction – It defines product performance in relation to expectations
- 13. Updating P Marketing Mix 4 Ps Marketing mix place product price promotion Modern Marketing Management 4 Ps Marketing mix people process programs performance
- 14. DEVELOPING MARKETING STRATEGIES AND PLANS • Defining the corporate mission – Short, memorable and meaningful • Establishing strategic business units • Assigning resources to each strategic Business unit • Assessing growth opportunities – Intensive growth, integrated growth, diversified growth
- 15. Business Strategic unit Planning Process Swot analysis Goal formulation Strategy Formulation Program formulation Implementation Feedback and control
- 17. Components Of Marketing Information System • Internal records – order payment cycle,sales information, data mining and ware housing • Marketing Intelligence System supplies the happening data • Collecting Marketing Intelligence on Internet and communicating and acting on marketing Intelligence • We have to communicate and act on Marketing Intelligence closely co-ordinating the decision making process
- 18. Analysing the Macro Environment • Demographic Environment • Economic Environment • Sociocultural Environment • Natural Environment • Technological Environment • Political-legal Environment
- 19. Fore casting and Demand Measurement • Market Potential is the limit approached by market demand as industry marketing expenditures approach infinity for an environment • Total market potential = Potential number of buyers *Average quantity purchased by a buyer * Price • To measure the market potential we can use Multiple-Factor Index method and Market-Build up Method • We should forecast the future demand by using intentions of buyers, composite of Salesforce opinion and expert opinion
- 20. The market Research Process Defining the problem and research objective Develop the Research Plan Collect the Information Analyse Information Make Decisions
- 21. Creating Customer Value and Relationships Traditional Organisational Chart Top Management Middle Man Frontline people Customer Modern Customer Oriented Organisational Chart Customers Frontline people Middle Man Top Management
- 22. Maximizing Customers Lifetime Value • Customer Profitability Analysis is conducted with tools of accounting technique called Activity Based Costing • Don Lehmann and Sunil Gupta recommended the following formula CLV= 𝑡=0 𝑇 𝑃𝑡−𝐶𝑡 𝑅𝑡 (1+𝑖) 𝑡 - AC Pt = Price paid by customer at time t Ct = Direct cost of serving customer Rt = Probability of customer repeat buying at time t AC = acquisition cost i= discount rate
- 23. Customer Relationship Management (CRM) • CRM is the process of carefully managing detailed information about individual customers ‘touch points’ to maximize loyalty • CRM includes personalizing marketing, customer empowerment, customers review and recommendations • Building loyalty include interacting with customers ,Developing Loyalty Programs • We should utilise customer data base and manage Data Ware Houses and Data Mining
- 24. Analysing customer markets What influences Customers Behaviour ? Cultural Factors Social Factors Personal Factors
- 25. Six great traits that characterize all great ideas “SUCCESS” Simple – find a core idea Unexpected – Grab peoples attention by surprising them Concentrate – make sure any idea can be grasped and remembered later Credibility – give an idea believability Emotion – help people see importance of idea Stories – empower people to use idea through narratives
- 26. The buying Decision Process Problem Recognition Information Research Evaluation of Alternatives Purchase Decisions Post purchase Behaviour
- 27. Analysing business markets What is organisational Buying ? It is the decision making process by which formal organisations establish the need for purchased product and services and identify, evaluate and choose among alternative brands and suppliers
- 28. Stages of Buying Process • Problem recognition • General Need Description and Product Specification • Supplier Search • Proposal Solicitation • Supplier Selection • Order routine Specification • Performance Review
- 29. Managing Business to Business Customer Relationships • Close relationships are driven in part of supply chain management ,early supplier involvement and purchasing alliainces • Four factors such as availability of alternatives, importance of supply, complexity of supply and supply market dynamics influence development of relation between business partners • Business relationships have risks and opportunities involved in it which are to be managed • Many companies are using new technologies to improve the way they do business with business to business customers
- 30. CHOOSING VALUE
- 31. Bases for segmenting customers • Geographic Segmentation – segmenting by region, city, rural and semi urban • Demographic segmentation – segmenting by age, family size, gender, income, occupation, education • Psychographic segmentation – segmenting by life style, personality • Behavioural Segmentation – segmenting by occasions, benefits, user status, user rate, loyalty status, readiness stage, attitude towards product
- 32. Major segmentation variables for business markets • Demographic – industry, company size, location • Operating Variables – technology, user status, customer capabilities • Purchasing Approaches – purchasing function organisations, power structure, nature of existing relationship, purchasing criteria • Situational Factors – urgency, specific application, size of order • Personal Characteristics – buyer seller similarity, attitude towards risk, loyalty
- 33. Competitive dynamics • Expanding total Market Demand by attracting new customers and increasing the usage of product • Protecting Market Share by using strategies suitable for business such as proactive marketing or defensive marketing • We should choose a general attack strategy against our competitors • Market nichers have to use innovative strategies to tap its customers and sustain in the market against competition
- 34. Product Life Cycle • Introduction – A period of slow sales growth as the product is introduced in the market • Growth – A period of rapid market acceptance and substantial profit improvement • Maturity – A slowdown in sales growth because the product has achieved acceptance by most potential buyers • Decline – Sales show a downward drift and profit erodes
- 35. Marketing in an Economic Downturn • Explore the upside of increasing investment during downturn • Get close to customers in tough times as they change what they want • Review budget allocations at the time of economic downturn • Put forth the most compelling value proposition during downturn • Fine tune brand and product offering during downturn
- 36. Crafting the brand positioning • Identifying Optimal Point of Difference(POD) and Point of Parity (POP) between your product and your competitors is important in crafting brand positioning • Choosing PODs and POPs by using hypothetical Perpetual maps • Brand Mantra is an articulation of the heart and soul of the brand • Brand Mantras are short three to five word phases that capture the irrefutable essence or sprit of brand positioning
- 37. Differentiation Strategies • Means of differentiation : Employee differentiation Channel differentiation Image differentiation Service differentiation Emotional Branding : Mystery adds complexity of relationships and people are naturally drawn to know Sensuality keeps five senses alert for sensory stimulus Intimacy means empathy, commitment , passion
- 38. Positioning and Branding Small Business • Creatively conduct low cost marketing research • Focus on building one strong brands based on key associations • Employ a well integrated set of brand element • Create buzz and a loyal brand community • Leverage as many secondary associations as possible
- 39. Creating brand equity “Brand is a name, term, sign, symbol or design or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from competitors” Brand equity is the added value endowed on product and services which may be reflected in the way customers feel, think, and act
- 40. Brand Equity Models Strong relationships Nothing else beats it Does it offer some thing Can it deliver? Does it offer me some thing Do I know about it Weak Relationshippresence relevance performance advantage bonding
- 42. Choosing Brand Element • Memorable – How easily do customers recall and recognise brand element • Meaningful – Is the brand element credible? • Likable – How aesthetically appealing is the brand element ? • Transferable – Can the brand element can introduce new products in same or different categories ? • Adaptable – How adaptable and updatable is the brand element? • Protectable – How legally protectable is brand element ?
- 43. DESIGNING VALUE
- 44. Setting product strategy • Product classification: Products falls into three groups according to durability and tangibility • Nondurable goods are tangible goods consumed in few uses: shampoos, soft drinks • Durable goods are tangible goods normally survive many uses : fridges, machine tool, clothing • Services are intangible, inseparable, variable and perishable products that normally require more quality control, supplier credibility
- 45. Product and services differentiation Product differentiation • Form • Features • Customisation • Performance quality • Conformance quality • Durability • Reliability • Repairability Services differentiation • Ordering Ease • Delivery • Installation • Customer Training • Customer Consulting • Maintenance and Repair • Returns
- 46. Product and Brand Relationship • The Product Hierarchy stretches from basic needs to particular items that satisfy those needs • Product system is a group of diverse but related items that function in a compatible manner • Product line analysis and product line lengths are important factors that effects the brand • Co Branding and Integrated branding are important features to be considered
- 47. Developing price strategies & programs • Price is not just a number on a tag. It comes in many forms and performs many functions • A changing price environment let you get instant price comparisions from thousands of vendors • Many customers use price as a quality indicator • Image sensitive pricing is effective with ego-sensitive products such as perfumes, expensive cars and designer clothing
- 48. Steps in setting a price policy • Selecting the price objective • Determining Demand • Estimating Costs • Analysing Competitors Costs, Prices and Offers • Selecting a Pricing Method • Selecting Final Price
- 49. Initiating and Responding to Price Changes • Initiating price cuts • low quality trap : The customer assumes quality is low • Fragile market share trap : Low Price buys market share but not loyalty • Shallow pocket trap : Higher priced competitors match lower prices but have longer staying power because deeper cash revenue • Price war trap : Competitors respond by lowering their prices even more triggering a price war
- 50. DELIVER VALUE
- 51. Designing & managing integrated marketing channels •Channel Design decision : •Analysing Customer Needs and Wants •Establishing objectives and Constraints •Identifying Major Channel Alternatives •Evaluating Major Channel Alternatives
- 52. Channel-Management Decisions • Selecting Channel Members • Training and Motivating Channel Members • Evaluating Channel Members • Modifying Channel Design and Arrangement • Channel Modification Decision • Global Channel Considerations
- 53. Channel Integration and Systems • Vertical Marketing Systems : Corporate VMS Administered VMS Contractual VMS • Horizontal Marketing Systems • Integrating Multiple Channel Marketing Systems • Similarly conflicts are also divided into Horizontal, Vertical and Multi Channel Conflict
- 54. Managing retailing, Wholesale & logistics • Retailing includes all the activities in selling goods directly to final customer • Types of Retailers : • Store retailer – self service ,self selection ,limited services, Full services • Nonstore Retailer -- Direct selling ,Direct marketing, Automatic vending, Buying Services • Corporate Retailing and Franchising
- 55. Wholesaling • Wholesaling include activities in selling goods or services to those who buy for resale or business • Merchant Wholesalers • Full-service Wholesalers • Limited-service Wholesalers • Brokers and agents • Manufacturers and retailers branches and offices • Specalized wholesalers
- 56. Market Logistics • Market logistics include planning the infrastructure to meet demand then implementing and controlling the physical flow of materials and final goods M=T+FW+VW+S • M= total market logistic cost of proposed system • T= total freight cost of proposed system • FW= total fixed warehouse cost of proposed system • VW= total variable warehouse costs • S= total cost of lost sales due to average delivery delay
- 58. Marketing Communication Mix • Advertising • Sales Promotion • Events and Experiences • Public Relations and Publicity • Direct Marketing • Interactive Marketing • Word of Mouth Marketing • Personal Selling
- 59. Developing Effective Communications Identify target audience Determine objectives Design communications Select channels Establish Budget Decide on Media Mix Measure results Manage integrated marketing communication
- 60. Deciding the Marketing Communication Mix • Advertising : pervasiveness, amplified expressiveness, control • Sales Promotion :ability to attention getting, Incentives , invitation • Public Relationship and Publicity : High credibility, Dramatization • Events and Experiences : Relevant, Engaging, Implicit • Direct and Interactive Marketing :Customized, Up to date, Interactive • Word of Mouth Marketing : Influential, Personal, Timey • Personal Selling : Personal interaction, Cultivation, Response
- 61. Managing mass communication Mission Sales goals Advertising objective Money Factors to consider Stages in PLC Market Share and consumer base Message Message generation Message evaluation Message execution Media Reach,frequency,impact Geographic media allocation Measurement Communicatio n impact Sales impact
- 62. Sales Promotion • Major consumer Promotion tools : Samples, Coupons, Cash refund offers ,Price packs, Premiums, Frequency Programs, Prizes, Patronage awards, Free Trails, Product warranties, Tie in Promotions, Cross Promotions • Major Trade Promotional Tools : Price off, Allowance, Free goods • Major Business and Sales Force Promotion Tools : Trade shows and Conventions, Sales Contests, Specialty Advertising
- 63. Module – 4
- 64. MOUNTAIN MAN BREWING COMPANY(MMBC) BRINGING THE LIGHT BRAND
- 65. • Chris Prangel a recent MBA has come to manage marketing operation of MMBC • Light beer sales has increased by 4% from past 6 years • Premium beer sales has decreased by 4% from 6 years
- 66. Mountain Man :The Company and Brand • In 2005 MMBC was generating 50 million dollars revenue and is selling 520000 barrels of beer • $2.25 for 12 ounce serving of draft beer and $4.99 for a pack of six in local convention store • Its core drinkers are blue collar men , middle to lower income men over age 45 • Best beer of Virginia in 2005 straight 8 years • Best Beer or Indiana • Mountain Man has its sales in East central Region
- 67. Mountain Man situation in 2005 • Mountain Man is generating sale of $75 billion in 2005 • The share of East central region in total U.S. beer sales is 18.3% • Light Beer has accounted to 50.4 % in 2005 compared to 29.8% in 2001 • Mountain Man is know as West Virginia Beer and is recognised for its toughness and bitter taste • Mountain Man has relied on Grass Root Marketing to Spread the beer
- 68. Challenges ahead for Mountain Man Light • The variable costs per barrel of Mountain Man Light is $4.69 more than its premium beer • Oscar Prangel has fears that Mountain man Light can cannibalize the sales of Mountain Man Langer • The advertising agency estimated creating a brand awareness levels of 60% in East central region would cost $750000 in a intensive six month campaign. • This is top of annual incremental SG&A which is $900000
- 69. Chris decision • From the financial projections he had done a few week before Mountain Man Light is expected to grow at least .25% of total market share every year and light beer is to grow by 4% in regional market Share • Chris looked at projections for Mountain Man lager which he obtained to be 2% loss till 2010 • Chris is not able to decide whether to launch Mountain Man Light or get with some strategy to improve sales of Mountain Man Lager
- 70. The Spring Field Nor’Easters Maximising the revenues in the Minor League
- 71. • Larry Buckingham is Marketing Director of Nor’Easters • Jimmy Mercante is owner and President of club and Bob Cortez the General Manager • Before finalising the ticket rate Buckingham wanted undergo a survey and keep the announcement made by Falcon in mind • Bucking ham has experience in marketing events but he is doing it for sports for the first time
- 72. The city of Springfield • It is the third largest city in Massachusetts and a median income of $37,800 for a family of three • 25% of families live below poverty line • 60% of families has children younger than 18 years of age
- 73. Minor League Baseball • In 2008 there were 176 minor league baseball teams in U.S competing through 19 regional leagues • The teams are located in small towns, sub-urbs of large cities where player development program • The major league teams provided funding for salaries of players and bat ball expenses • Spring field stadium has 3600 seats under open air arena, 2000 seat bleachers and 1600 grand stand seats
- 74. Developing the Sample to Survey • Sample of 5000 names taken from Springfield census tracts of households with income above poverty line at $90 per thousand names • 5000 names were obtained from mailing list of four sports related organisations at $125 to $130 per thousand names • The sample was heavily weighted towards the house holds with children under 18 years of age and is 64%
- 76. • Even companies with formidable assets are slow to fend off free product competitors .The reason is the ubiquity of the profit center structure and mind set • Assessing the threat • Choosing whether and when to respond • Offer a free better • Rethink Profit Centers
- 77. How Big a Threat is Free Competition Immediate Threat • Launch free product immediately Business Model Threat • Change Business Model Minor Threat • Monitor Situation Delayed Threat • Delay Launch of free product
- 78. Four Tried and True Strategies • Up-Sell – Introduce a free basic offering to gain wide spread use and then change for a premium version • Cross -Sell – Sell other products that are not directly tied to free products • Charge third Parties – provide a free service to user and charge third party for access to them • Bundle – offer a free product or service with a paid offering
- 80. “Created by Sai Srujan,RGIPT RaeBareli, during an internship by Prof. Sameer Mathur,IIM LUCKNOW”