Marketing course at Copenhagen business School

1. Marketing strategy and planning in an
international perspective
Intro to the course
the role of marketing in devoleping succesful business
strategies
Week 37
Jacob Holm
Jacob.k.holm@gmail.com
hoja@udd.cbs.dk
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2. Jacob Holm
Email:
jacob.k.holm@gmail.com
Studies: Positions: Position now:
Masters in economics, Århus
Universitet (Cand Oecon)
University of California at
Berkeley
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3. The marketing management process
Part 1:Marketing Strategy
• Market –led strategic management – chapter 1
• Strategig marketing plannng
Part 2: Competitive market analysis
• The changing market environment – chapter 3
• Customer analysis – chapter 4
• Competitor analysis - chapter5
• Understanding the organizational resource base – chapter 6
• Forecasting future demand and market requirements – chapter 7
Part 3: Identifying current and future competitive positions
• Segmentation and positioning principles – chapter 8
• Segmentation and positioning research – chapter 9
• Selecting target markets– chapter 10
Part 4: Competitive position strategies
• Segmentation and positioning principles – chapter 11
• Competing through the new marketing mix – chapter 12
•Competing trough innovation– chapter 13
• Competing through superior service and customer relationship – chapter 14
Part 5: Implementing the strategy
• Strategic customer management – chapter 15
• Strategic alliances and network – chapter 16
• CSR – chapter 18 www.Office2go.dk

4. A bit inspiration before we start
What’s it all about?
Fenway and Why sport
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5. Teachers
• Lecturer: Jacob Holm (Jes Trygved, Peter Becker)
• Classes:
– Class A: Peter Becker
– Class B: Jes Trygved
– Class C: Jacob Holm
• Markops Online Simulation
– Jacob Holm,
• Exams: Synopsis and oral
examination
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6. Eksamen
• Hvordan får du et top resultat
– Kend din teori (dette er CBS)
– Relater teorien til en case (det virkelige liv)
– Ha’ overblik over stoffet
– Kunne kritisere teori – kritik kan både være positivt og negativt.
• Se pensum som en helhed
• Formuler klart of præcist
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7. Hvad lægges der vægt på til eksamen
• at den studerende demonstrerer forståelse for og indblik i diverse
strategiske modellers, teoriers og metoders anvendelsesmuligheder/-
begrænsninger i forbindelse med identifikation, formulering og analyse af
marketingmæssige problemstillinger på det internationale marked;
• at den studerende demonstrerer evne til at koble og konvertere interne og
eksterne informationer/data samt analyseresultater til
beslutningsstøttende information med henblik på at kunne vurdere valg af
strategiske alternativer:
• at der vises forståelse for og indblik i det kulturelle aspekt af international
marketing, og hvilke udfordringer det medfører for virksomhedens
strategier og planlægning;
• at den studerende formår at relatere fagets teoretiske apparat til konkrete
cases;
Det forventes således, at der bl.a. kan drages paralleller til cases
gennemgået i undervisningen.
• at såvel synopsis som oplæg er velstruktureret, velargumenteret og
velformuleret
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8. Before we start………
”It is not the future that I
fear.....
it is not being able to let
go of the past”
John Meynard Keynes, 1883-1946
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9. Case:
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10. Case: Renault F1
• Scene: Race track ”Monza, Italy”, 2009, July –
race day; Saturday, time=10.00 hrs.
• Weather: Sunny, temperatures are expected to
be above 30 C during mid day.
• Race starts at 1300 hrs and finish at 1600 hrs.
• You are technical director Bob Bell of the
Renault sponsored F1 team.
• You have a team of a 100 specialist and
mechanics to help you take decisions.
But you are the manager and have
to take the decisions!
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11. Case: The situation
• Test races has shows problems with the
breaks.
• You have had 2 cancellations previous this year
due to engine failures and similar break
problems as this race day.
• Renault is entitled to withdraw its sponsorship
with its finance share of more than 75% of the
team budget if the team cancel a third time.
• You are in the middle of the season and finding
a new sponsor is not an option.
• If you decide not to run, Renault will withdraw
and cause a bankruptcy and you and your
colleagues will be without a job.
• Break failures can be fatale.
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12. Case: Renault F1 - Data
Data are inconclusive:
• Tests show signs of break failure when the
temperature is at 28 C or above, but only under
wet conditions (rain)
• However tests also shows that in 30% of the
cases, break failures appears at temperatures
higher than 28 C under dry conditions.
• However it is not certain if this temperature
limit is 28, 30 or 33 C due to lack of significant
tests.
• Their is no proven correlation between
temperature and the likely hood of break failure
at this stage.
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13. Case: Renault F1 - Monza
Monza has an Whether forecast: above
extremely dangerous 30 C during mid day.
corner – “point A” –
where the drivers
come into the corner
with app 300 km (186
miles) A
Robert Kubica & Vitay Petrov
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14. Case: Renault F1 - Task:
Do you race: Yes or No ?
You alone have to take the
decision!
Renault F1 technical director Bob
Bell
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15. Case or real life ?
This is of course a story, but a story with a point.
As marketing people we need to take decisions – not life or death
decisions, but budget decisions every day!
To be able to take the right decisions we need to have a
appropriate strategy!
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16. How do we work?
1. Problem identification
2. Problem formulation
3. Solution or suggestion
Method
Case discussion Markops game
Teach method – we will go behind the
problem to come up with a solution
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17. Markops Online Simulation
Why include a simulation game in the course?
Introduction to the Markops world
Your task in brief!
222 Third Street Cambridge, MA 02142
Tel: (617) 494-8282 Fax: (617) 494-1421 www.Office2go.dk

18. 4 companies are in competition in a fictitious
FMCG market: the “Yumite” market
 “Yumites” are a class of edible consumer products
comparable to savory snacks, confectionary products or
dessert items
 “Yumite products have existed for several years
 Now a well-established market, with several strong
brands at different price points covering a wide range of
needs
 Consistent solid growth since the introduction of the first
Yumite brand
 Probable continued growth over the next five years
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19. Five consumer segments of Yumite products
vary in age, occupation and family status
HIGH EARNERS
 High income
 25+
SINGLES  Single or married no kids
AFFLUENT FAMILIES
 Low income
 Buy expensive products
 High income
 18 – 35
 Motivated by social status
 25 – 45
 Single, student or employee  Married with kids
 Heavy users, rather price  Frequent buyers of Yumites
sensitive  Buy high quality products
LOW INCOME FAMILIES MEDIUM INCOME
FAMILIES
 Low family income  Lower income than Affl. Fam.
 25 – 45  25 – 45
 Married with kids  Married with kids
 Buy lower quality products  Buy average quality products
 Very price sensitive  Slightly price sensitive
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20. Over 95% of Yumite products are purchased
in traditional distribution channels
SUPERMARKETS
 20 chains – 2,000 stores
 Large % sales from Yumites
 Broad product line
MASS  Both cheap and expensive SPECIALTY CHAIN
MERCHANDISERS brands STORES
 10 chains – 12,500 stores  15 chains – 6,000 stores
 Food, house wares, personal  Specialize in Yumites
care products  Extensive customer service
 Limited product line  Focus on expensive, high quality
 Cheaper, lower-quality brands brands
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21. Data is available on Consumers, Firms, Brands...
It is up to you to prioritize, digest and interpret them
Strategic
Data Information
Options
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22. Newsletter
Attributes of marketed brands
Brand names start
with firm’s initial
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23. Markops and Marketing strategy
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24. Markops and Marketing strategy
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25. Markops and Marketing strategy
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26. You are responsible for designing and
implementing the marketing strategy of
your firm
Product portfolio strategy
 Which brands the company is going to develop and market
Segmentation and positioning strategy
 Which market segments will be targeted
 How products will be positioned
Marketing mix strategy
 Day-to-day operational marketing decisions
 Pricing, production, communication, distribution, …
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27. Your mission
IMPROVE CONSUMER WELL-BEING
THROUGH INNOVATIVE
PRODUCTS AND SERVICES
AND
MAXIMIZE
SHAREHOLDER VALUE
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28. Coffee break
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29. www.Office2go.dk
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30. What is marketing’s role
“There are only one valid definition of business purpose:
To create a customer!
Because it’s purpose is to create a customer, a business has two
– and only two – basic functions. Marketing and innovation. They
produce results – all the rest are costs”
Peter Drucker – Markedsføring 12 – 2005
Therefore we need to focus on:
1. how we increase the effectiveness of the
marketing effort
2. The level of innovation
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31. Controlling marketing activity
There is an old saying that goes somewhat like this:
“Half of the marketing budget will probably be wasted – the
problem is that we do not know which half it is before after the
budget period………..”
This is just not god enough in today’s business world !!!
Marketing needs to compete for resources
In the company like all other departments
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32. Findings
Universe: 400 BTB DK based companies
 Written Mkt-plan: 79% no
 Does Mkt-dept know KPI: 70% no
 Act or react mode: 75% react mode (ie vs competitor)
 Does Mkt-dept know sales targets: 70% no
 Does Mkt-dept know markets and competition: 70% no
 Is marketing involved in costumer relations: 80% no
 Is the Mkt-dept ”competent”: 72% no
 Is the Mkt-dept marketing educated: 75% no
 Is the Mkt-dept respected in ”sales”: 80% no
 Is Mkt-dept part of top management: 92% no
Research in ”Markedsføring” No 12 (24 of Augst 2004), page 15, source ChangeMarketig
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33. But this is not the case………..
In a recent research 204 CEO’s in Danish companies with over 50
employees where asked which department who contributed with
most value to the company?
Sales
Cust om er service
Business developm ent
Product ion
Dist ribut ion
Market ing
IT
Finance
Research & Developm ent
Hum an research
0% 10% 20% 30% 40% 50% 60%
Source: Institut for
konjunktur-analyse: 5-11
juli 2005
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34. Strategy
“ A strategy is a fundamental pattern of present and planned
objectives, resource deployments and interactions of an
organization with markets, competitors, and other environmental
factors”
-------- And what does that mean ?……………………
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35. What is strategy
Strategy is war tactics
Clausewitz was one of the first and
largest strategic thinkers:
Carl Philipp Gottlieb von Clausewitz
1. juli 1780 - 16. november 1831
“War is merely a continuation of
politics”
Wom Kriege 1832
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36. Stakeholders
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37. Marketing fundamentals
• Principle 1: Focus on the customer
– What business are we in?
– What business could we be in?
– What business do we want do be in?
– What must we do to get into or consolidate in that business
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38. Marketing fundamentals
• Principle 1: Focus on the customer
• Principle 2: Only compete in markets where you can establish a
competitive advantage
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39. Marketing fundamentals
• Principle 1: Focus on the customer
• Principle 2: Only compete in markets where you can establish a
competitive advantage
• Principle 3: Customers do not buy products……..
• Women do not by shoes for walking – they by fashion.
• You by headache relief not Aspirin
– A products value is a function of a lot of different aspects which are different
from buyer to buyer.
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40. Marketing fundamentals
• Principle 1: Focus on the customer
• Principle 2: Only compete in markets where you can establish a
competitive advantage
• Principle 3: Customers do not buy products……..
• Principle 4: Marketing is to important to leave to the marketing
department
Products, prices, place, promotion
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41. Marketing fundamentals
• Principle 1: Focus on the customer
• Principle 2: Only compete in markets where you can establish a
competitive advantage
• Principle 3: Customers do not buy products……..
• Principle 4: Marketing is to important to leave to the marketing
department
• Principle 5: Markets are heterogeneous
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42. Marketing fundamentals
• Principle 1: Focus on the customer
• Principle 2: Only compete in markets where you can establish a
competitive advantage
• Principle 3: Customers do not buy products……..
• Principle 4: Marketing is to important to leave to the marketing
department
• Principle 5: Markets are heterogeneous
• Principle 6: Markets and customers are constantly changing
– Situationsbestemt forbrug (Institut for fremtidsforskning 2003)
• Her tager mennesket ikke udgangspunkt i sig selv og den type man tilhører, men mere
i den situation som man står i og den rolle man har i situationen.
• Lad os kigge på et godt eksempel ØL!
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43. Eksempel: øl og det situationsbestemte
forbrug
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44. The marketing Strategy process
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45. Business purpose
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46. Mission, Vision og Værdier
Mission (hvem er vi?)
• Fortæller kort hvilke behov og ønsker hos kunderne virksomheden vil dække – og hvordan
de vil gøre det
• Bæredygtig over tid
• Beskriver kerneforretningen
• Virksomhedens eksistensberettigelse – hvorfor er vi her?
Vision (hvem vil vi være?)
• Fremtiden – det virksomheden stræber mod (fyrtårn, stjerne mm)
• Skal være ambitiøs og skabe inspiration/motivation/stolthed
Værdier (hvordan gør vi det?)
• De grundlæggende principper for ledelsens og medarbejdernes adfærd
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47. SWOT (TOWS)
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48. SWOT…
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49. SWOT…
S: STYRKER T: TRUSLER
INTERNE ANALYSE- EKSTERNE ANALYSE-
MODELLER MODELLER
W: SVAGHEDER M: MULIGHEDER
INTERNE ANALYSE- EKSTERNE ANALYSE-
MODELLER MODELLER
• HVAD KAN VI KONKLUDERE PÅ BAGGRUND AF VORES SWOT?
• HVILKE STYRKER/SVAGHEDER SPILLER SAMMEN MED HVILKE TRUSLER/MULIGHEDER?
• DET ER HER VI FINDER VORE KONKURRENCEFORDELE!
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50. SWOT som ledelsesværktøj
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51. SWOT Eksempel
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52. Inden du laver en SWOT
• Definer hvad du laver en SWOT for!
– Virksomhed
– Produktgruppe
– Brand
– Marked
• Hvor en SWOT kun analyserer, tager TOWS løsninger med !
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53. TOWS -
analyse
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54. Core strategy
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55. Core strategy
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56. Creation of the competitive position
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57. Forretningsstrategier
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58. Generic strategies
“ How should a business position its product offering so customers
in the target market perceive the offering as providing the benefits
they seek, thereby giving the product an advantage over current
and potential future competitors”.
“ A company can outperform its rivals only if it can establish a
difference that in can preserve. It must deliver greater value to
customers or create comparable value at a lower cost”.
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59. Generic strategies
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60. Implementation
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61. Thomas Bonoma; Problem diagnosis
Source : ”The marketing edge – making strategies work”
Strategy
Appropriate Inappropriate
Roulette:
Success:
•Good execution can
•All that can be done to mitigate poor
Good assure success has been strategy, ”forcing”
done – 25% management to success –
10 %
Or
Implementation •The good execution can
hasten failure.
Trouble: Failure:
•Poor execution hampers •Very hard to
good strategy. diagnose, because bad
Poor strategy is masked by
Management may never
become aware of strategic poor execution.
soundness because of •Even harder to
execution inadequacies. – fix, because two things are
50 % wrong. – 25 %
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62. Marketing mix
Kap 12
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63. The marketing management process
Part 1:Marketing Strategy
• Market –led strategic management – chapter 1
• Strategig marketing plannng
Part 2: Competitive market analysis
• The changing market environment – chapter 3
• Customer analysis – chapter 4
• Competitor analysis - chapter5
• Understanding the organizational resource base – chapter 6
• Forecasting future demand and market requirements – chapter 7
Part 3: Identifying current and future competitive positions
• Segmentation and positioning principles – chapter 8
• Segmentation and positioning research – chapter 9
• Selecting target markets– chapter 10
Part 4: Competitive position strategies
• Segmentation and positioning principles – chapter 11
• Competing through the new marketing mix – chapter 12
•Competing trough innovation– chapter 13
• Competing through superior service and customer relationship – chapter 14
Part 5: Implementing the strategy
• Strategic customer management – chapter 15
• Strategic alliances and network – chapter 16
• CSR – chapter 18 www.Office2go.dk

64. www.Office2go.dk

65. Nothing more for today
Jacob Holm
Email:
jacob.k.holm@gmail.com
www.office2go.dk