Slides from Seminar 3 in my Managing Marketing Processes course at SSE in Oct 2014

1. Managing Marketing Processes
----
Marketing Research Processes: Analyzing
the Market and the Competition
Seminar 3
Robin Teigland
Master of General Management
Stockholm School of Economics
October 14, 2014

2. Assignment 4 – STP (corrected)
1. Introduction: Electrolux Brand. Describe the Electrolux
brand mantra + main target audience + key benefits
2. Market segments: socio-demographic. Describe a
socio-demographic segmentation – What is it and how
can you use it? What are the key learnings from
segmenting using socio-demographic data? Describe
the limitations of using a socio-demographic approach
only.
3. Market segments: needs-based. Describe a needs-based
segmentation – what is it and how can you use
it? What benefits does a needs-based segmentation
provide?
2

3. Seminar 3 Overview
 Analyzing the Market
 Guest Speaker, Wei Wei, Springfellow
 Marketing Plan assignment
3

4. Marketing planning process
1. Summary of Current Situation - Provides a description of the business;
product/service analysis. The situational analysis encompasses internal and
external factors, e.g., the company’s mission, strategy, offerings, and financial
status; the economic and political climate; demand trends, and competitors.
Discuss PESTEL, five forces, SWOT. Wood, 2008
4

5. 5
Industry analysis

6. 6
Porter’s five forces of competition
ENTRANTS
Threat of new entrants
INDUSTRY
COMPETITORS
SUPPLIERS BUYERS
Rivalry among
existing firms
Threat of substitutes
SUBSTITUTES
Bargaining
power of
suppliers
Bargaining
power of
buyers
http://www.youtube.com/watch?
v=mYF2_FBCvXw&feature=channel
Porter, 2008

7. How to draw the industry boundaries?
• What industry is BMW in?
–World auto industry
– European auto industry
–World luxury car industry?
• Key criterion is SUBSTITUTABILITY
–On the demand side: Are buyers willing to substitute between
types of cars and across countries?
–On the supply side: Are manufacturers able to switch
production between types of cars and across countries?
• The industry may need to be analyzed at different levels of
aggregation for different types of decisions
Grant 2008 7

8. Industry Level Analysis: Porter’s Five Forces
Threat
of
Potential
Entrants
Rivalry Between Competitors
• Identify Competitors and intensity
of Rivalry amongst competitors.
• Briefly explain. •Identify Buyers and
Bargaining
Power of Buyers
Bargaining Power
of Suppliers
Threat of
Substitutes
Bargaining Power of each.
•Briefly explain.
What business segment or industry is being considered:
___________________________________________
•Identify Suppliers and
Bargaining Power of each.
•Briefly explain.
•Identify Substitutes and
the threat level of each.
•Briefly explain
•Identify Potential Entrants and
the threat level of each.
•Briefly explain.
Is this an attractive industry?
Briefly explain, why or why not?
Process steps:
1. Identify industry or segment boundaries.
2. Identify players in each Force using case facts.
3. Assess level of threat, power, intensity of each Force
using case facts and course concepts.
4. Make final assessment of whether it is an attractive
industry in which to compete using results of 5
Forces analysis to support your view.
9

9. 18
How does the environment (PESTEL)
affect the five forces (now and in future)?
Johnson & Scholes 1997
Politics and
government
Environment Technology
Legal
structure
Social and
Demographic
structure
International/
national
economy
Industry
environment
http://www.youtube.com/watch?v=jp_oyHY5bug

10. 19
1. What factors are affecting the industry?
2. Which of these are the most important at the present time?
3. Which of these are the most important in the next few years?
 Political
 Global, regional, and national political
development (administration, political
parties)
 Taxation policy
 Foreign trade regulations
 Labour market politics
 Government stability
 Socio-cultural
 Population demographics
 Income distribution
 Social mobility
 Lifestyle changes
 Attitudes to work and leisure
 Attitudes to consumerism
 Levels of education
 Changes in values/attitudes
 Education conditions
 Work environment conditions
 Health conditions
 Environmental
 Ecology
 Pollution conditions
 ”Green” energy
 Energy conservation
 Waste handling
 Economic
 Business cycles
 GNP trends
 Interest rates & Exchange rates
 Money supply
 Inflation
 Unemployment
 Wage level
 Private consumption and disposable
income
 Public finances
 Energy availability and cost
 Technological
 Government spending on research
 Government and industry focus of
technological effort
 New discoveries/development
 Speed of technology transfer
 Rates of obsolescence
 New patents and products
 Legal
 Development in price and competitive
legislation
 Labour market legislation
 Product safety and approvals

11. Marketing planning process
2. Focused Assessment of the Market Opportunity - Explains the
segmentation, targeting, and positioning decisions. Discusses which segments
are to be targeted, with an overview of customer and prospect needs, wants,
behaviors, attitudes, loyalty, and purchasing patterns as well as the competitive
challenges faced by the company and its offerings. Wood, 2008
20

12. Group Assignment – Part A
 How powerful are suppliers to this industry? What are the
implications for the company’s business relationships?
 How powerful are buyers in this industry? What are the
implications for the company’s pricing strategy?
 Can customers substitute other goods or services for the
company’s offering? What are the implications in terms of
customer loyalty for this company?
 How fierce is the competition among competitors in the
industry?
 Can the company or competitors easily exit the industry?
Can more rivals easily enter the industry? What are the
implications for the company if environmental conditions
threaten profitability?
 Overall how attractive is this industry? 21

13. Group Assignment – Part B
 How can this market be described broadly in terms of
product, geography, and demographics?
 If you are researching a consumer market,
 approximately how many people, families, or households are in the market?
 What, specifically, are the main influences on buying behavior in this
consumer market?
 If you are researching a business market,
 approximately how many and what type of organizations are in the market for
the product?
 What characteristics such as turnover, number of employees, and other
descriptions relevant to the product apply to customers in this business
market?
 What changes are currently affecting (or will soon affect) this
consumer or business market?
 What relationships and organizational considerations have
the most influence on buying in this market? 22

14. Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
4-23
Research Approaches
 Observational and ethnographic
 Focus group
 Survey
 Behavioral
 Experimental

15. Rising interest in ethnography
“Ethnography or observational research has
drawn significant attention recently, not only in
the market research and marketing fields but in
the mass media as well …all starts by doing
something simple – keenly watching
consumers, fact to face, knee to knee and
listening, with ears, eyes, heart, brain and your
intuitive sixth sense.”
Procter & Gamble
ex-CEO A.G.
Lafley
Tesco: http://www.youtube.com/watch?v=fGaVFRzTTP4

16. Seminar 3 Overview
 Analyzing the Market
 Guest Speaker, Wei Wei, Springfellow
 Marketing Plan assignment
25

17. 7755––8800%% of new products being launched fail.
 TThhee iiddeeaa iiss ggoooodd,, bbuutt tthhee mmaarrkkeett sshhaarree iiss oovveerrrraatteedd..
 The product itself is not developed enough.
 The new product is badly positioned on the market, not
well-known enough, is priced too high or has the
”wrong” packaging.
 The management wants to see their favorite ideas
become products against all market research.
 Developing costs are higher than anticipated.
 Competitors put up more of a fight than anticipated.
GfK 2012

18. What is a Marketing Plan?
A marketing plan is the
central instrument for
directing and coordinating
the marketing effort.
It operates at a strategic and tactical level.
McDonald, M. (2006) Strategic Marketing Planning: Theory
and Practice, The Marketing Review, 6, 375-418.
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
2-27

19. A marketing plan ≠ A business plan
28
Business Plan
Wide overview of
business, eg mission,
goals, strategy, staff,
operations, location,
marketing, financial
Often used as
financial tool to see if
business viable
But they are
interdependent!
Marketing Plan
Details actions to fulfill
mission and goals.
Identifies business price
points, target markets,
and competition and
explains how business
generates customers
http://smallbusiness.chron.com/difference-between-marketing-business-plan-1682.html

20. Levels of a Marketing Plan
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
2-29
 Strategic
 Target marketing
decisions
 Value proposition
 Analysis of
marketing
opportunities
 Tactical
 Product features
 Promotion
 Merchandising
 Pricing
 Sales channels
 Service

21. Marketing Plan Contents
 Executive Summary
 Table of Contents
 Situation Analysis
 Marketing Opportunity Assessment
 Marketing Strategy
 Financial and Marketing Goals and Budgets
 Implementation and Controls
 References
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
2-30

22. Marketing planning process
Wood 2008 31

23. Evaluating a Marketing Plan
 Is the plan simple?
 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?
Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
2-32

24. Marketing Plan Group Assignment
 Assume role of a “marketing manager” and
select a company within a specified industry
 Develop a marketing plan for a product or
service not currently offered by your company to
be launched on the Swedish market
 Completely new-to-the-world or can be new just to
your company
 Write a comprehensive marketing plan profiling
the competitive strategy to bring that product or
service to the Swedish market.
33

25. Marketing Plan Teams
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GROUPS PREFERENCES
1. CG Awesome
B2C SME Service - Crown Innovative Parking
2. Brazilian BBQ
B2C SME Service -
4. Fika 4 Six
B2C SME Product – Frank’s Red Hot Sauce
5. 6 Llamas B2C MNC Product - Uniqlo
6. WIC
B2C MNC Service - Uber

26. Milestones
 October 20 – See “Group Assignment for Seminar 5” for information.
 October 20 – Submit Feedback on another team’s Initial Presentation. The
Feedback should add value to the other Team’s presentation content and the
communication of the Team’s message. Your Feedback is also to include a summary of
the main points made by the other students during the presentation on October 20.
Your Feedback is to be in MS Word Doc (max 2 pages) format and have points on
both strengths and weaknesses regarding content and communication style. Feedback
teams will be assigned in class.
 November 3 – Present a 10 min max Final PPT Presentation on your
marketing plan.
 November 4 – Submit Feedback on another team’s Final Presentation. The
Feedback should add value to the other Team’s presentation content and the
communication of the Team’s message to help them finalize their Final Report. Your
Feedback is also to include a summary of the main points made by the other students
during the presentation on November 3. Your Feedback is to be in MS Word Doc (max
3 pages) format and have points on both strengths and weaknesses regarding content
and communication style. Feedback teams will be assigned later in the course.
 November 9 - Submit the Marketing Plan of maximum 15 pages (MS Word Doc not
including title page, executive summary, table of contents, references or appendices).
35

27. Final Report
 15 pages
 Not including title page, executive summary, table of contents, references
or other appendices
 Single-spaced, 12 Times Roman, numbered pages, 2.54 margins
 All sources documented in proper manner
 See www.plagiarism.org for more information on how to cite and document
sources.
 The marketing plan is evaluated according to three criteria
 Professional Written and Oral Communications
 Critical Thinking Involving Analysis and Understanding of Theoretical
Concepts and Frameworks that Build Your Argument
 Creative and Original Content yet Feasible Plan
 Each group member contributes to the assignment in fair
proportion
36

28. Independent Research – Get Started Now
 Start researching
 Use library’s databases and library staff
 Determine what data you need to collect and how
 Qualtrics, databases, interviews, etc.
 Contact any relevant people
 Follow related topics on twitter: marketing, industry
product, etc.
 Blog, tweet, post, etc. about what you find
 #SSEMGM2014
 Share with one another!
37

29. Take a look at what is out there
 Online marketing plan templates / software
 slideshare, youtube, blogs
 Passport GMID database (Amazing!)
 E.g., SWOT
38

30. Seminar 4 Overview
 Identifying Market Segments and Targets:
Exploring Segmentation, Targeting, and
Positioning
 Guest Speaker, Paola Peretti, Electrolux
39