the marketing game information deck
DESCRIPTION
Information about the Marketing Game programTRANSCRIPT
1
Charlotte H. Mason • William D. Perreault, Jr.
3rd edition
6
The Marketing Game is Integrative … and Covers All Aspects of the The Marketing Game is Integrative … and Covers All Aspects of the Marketing Strategy Planning ProcessMarketing Strategy Planning ProcessThe Marketing Game is Integrative … and Covers All Aspects of the The Marketing Game is Integrative … and Covers All Aspects of the Marketing Strategy Planning ProcessMarketing Strategy Planning Process
Technology Political & Legal Social & Cultural EconomicTechnology Political & Legal Social & Cultural Economic
CustomersCustomersNeeds and otherNeeds and other
SegmentingSegmentingDimensionsDimensions
CompanyCompanyMission, Objectives, Mission, Objectives,
& Resources& Resources
CompetitorsCompetitorsCurrent &Current &ProspectiveProspective
S.S.W.W.O.O.T.T.
TargetMarketTargetMarket
ProductProduct ProductProduct PricePricePricePrice
PromotionPromotionPromotionPromotion
External Market EnvironmentExternal Market Environment External Market EnvironmentExternal Market Environment
Targeting &Targeting &SegmentationSegmentation
Positioning &Positioning &DifferentiationDifferentiationPositioning &Positioning &DifferentiationDifferentiation
Narrowing Narrowing downdown to focused strategy to focused strategy with quantitative and qualitativewith quantitative and qualitative screening criteriascreening criteria
PlacePlacePlacePlace
7
OverviewOverview
You take over marketing management responsibilities for your firm. Must satisfy customers and earn profits
Focus is on marketing strategy planning. Requires integration of all strategy decisions. Requires attention to competitive environment. Considers short term and long term perspectives.
9
Industry EnvironmentIndustry Environment
Market growth
Technological environmentNo major innovations expectedYearly revision cycle
Competitive environmentType of competition depends on firms’ decisions
10
Six Key Product-Market SegmentsSix Key Product-Market Segments
HarriedAssistants
HomeUsers
High-techManagers
ModernStudents Professional
Creators
ConcernedParents
Segments have different needs, preferences, situations, sizes, growth rates.Segments have different needs, preferences, situations, sizes, growth rates.
11
Past Sales By Market SegmentPast Sales By Market Segment
0
5000
10000
15000
20000
25000
0 1 2 3
Year
Assistants
Managers
Students
Home
Creators
Parents
For Voice Recognition Device
Page 18
12
Distribution ChannelsDistribution Channels
HarriedAssistants
HomeUsers
High-techManagers
ModernStudents Professional
Creators
ConcernedParents
Firm 1 Firm 2 Firm 3
Channel 1Traditional
Dealers
Channel 2DiscountDealers
Firm 4
Firms reach customersthrough full-servicedealers and Internet/mail-order discount dealers.
Firms reach customersthrough full-servicedealers and Internet/mail-order discount dealers.
Different segments have different shopping preferences.
Different segments have different shopping preferences.
13
Product 1: Voice Recognition Device (VRD)Product 1: Voice Recognition Device (VRD)
Key ProductFeatures
Error Protection (1-10)
Number of Special Commands (5-20)
Ability to Customize (1-10)
14
R&D for Product Modifications: Computing CostsR&D for Product Modifications: Computing Costs
$3,000*(change)2$3,000*changeEase of Learning (1-10)
$5,000*(change)2$0Error Protection (1-10)
$8,000*(change)2$0Special Commands (5-20)
Cost to IncreaseCost to DecreaseFeature
+2
-1
+2
Change
5
3
8
This period’s product
$44,000Total modification costs:
Example
$3,000*2*2=$12,0003Ease of Learning
$04Error Protection
$8,000*2*2=$32,0006Special Commands
Cost to Change
Last period’s productFeature
Note: R&D for product changes is more expensive if you have to make big changes in a short period of time…
15
Product 2: Digital Vocal Communicator (DVC)Product 2: Digital Vocal Communicator (DVC)
Key ProductFeatures
Similarity of Commands (1-10)
Number of Tasks (1-10)
Ease of Learning (1-10)
Level 3
16
Types of AdvertisingTypes of Advertising
Pioneering Direct competitive Indirect competitive Reminder Corporate (Institutional)
18
Expanded Marketing Responsibilities (Level 2)Expanded Marketing Responsibilities (Level 2)
PRODUCT Features (and R&D for product modifications) PRICE Wholesale price in each channel
PLACE Distribution intensity in each channel
PROMOTION
-Advertising $ Spending
Type
-Personal selling Number of sales reps in each channel
Percent non-selling time
Commission rate
-Sales promotion $ Spending per Channel
CUSTOMER SERVICE $ Spending
MARKET RESEARCH 7 Reports May be PurchasedDemand Forecast/Production order Number of Units
21
Response Functions and Marketing SpendingResponse Functions and Marketing Spending
Sales
Marketing Spending
ThresholdLevel
SaturationLevel
Spending too little may have little effect, but spending too much just increases costs and reduces profit.
23
Marketing Budget Items (Level 2 and 3)Marketing Budget Items (Level 2 and 3)
R&D product modification costs Sales force salaries and severance pay Advertising expense Customer service expense Sales Promotion Expense Market research reports expense
BUDGET FOR FIRST PERIOD: $984k Sales commission is not a budget item
25
Computing PricesComputing Prices
Computing Retail Prices from Wholesale Prices:Expected Retail Price = Wholesale price/(1-% Markup)
Example: Wholesale price = $105Channel 1 Retail Price = ($105/(1-.50)) = $210
Channel 2 Retail Price = ($105)/(1-.35) = $161.54
Computing Wholesale Prices from Desired Retail
Prices:Wholesale Price = Retail Price (1 - % Markup)
Example: Desired Retail Price = $190 Channel 1 Wholesale Price = $190*(1-.50) = $95.00
Channel 2 Wholesale Price = $190*(1-.35) = $123.50
26
Retail Prices Charged Final ConsumersRetail Prices Charged Final Consumers
The retail price set by a dealer depends on:
The wholesale price in the dealer’s channel.
The customary markup used in the channel.
The portion of any sales promotion “deals” that the dealer passes along to consumers as a price reduction.
Remember R=PxQ
28
Competitor AnalysisCompetitor Analysis
Estimate competitor’s net contribution Analyze past strategies & likely changes. Evaluate positioning and target segments.
? XX
X
?
?X
1 2 3 4
Firms
1
2
3
4
5
6
Seg
men
ts
29
Industry Sales ReportIndustry Sales Report
$6,475,61444,3082
$10,696.24056,2961
Dollars SalesUnit SalesChannel
$17,171,854100,604Total
$4,292,964.250 25,151Firm 4
$4,292,964.250 25,151Firm 3
$4,292,964.250 25,151Firm 2
$4,292,964.250 25,151Firm 1
$ Sales (retail)Share (units)Unit SalesBrand
30
Product Features and Prices ReportProduct Features and Prices Report
Brandof
VRD
Firm 1Firm 2Firm 3Firm 4
Specialcommands
8888
Errorprotect-
ion
3333
Ease of
learning
3333
Retailprice
channel 1
$190.00$190.00$190.00$190.00
Retailprice
channel2
$146.15$146.15$146.15$146.15
31
Market Activity Report (Level 2)Market Activity Report (Level 2)
Adv. DollarsAdv. Type
Sales Promotion Channel 1 Channel 2
No. Sales Reps Channel 1 Channel 2CommissionCustomer Service
Firm 1
$250,000
$0$0
10105%$92,500
Firm 2
$250,000
$0$0
10105%$92,500
Firm 3
$250,000
$0$0
10105%$92,500
Firm 4
$250,000
$0$0
10105%$92,500
33
Market Research Reports (Level 2)Market Research Reports (Level 2)
1. Market share by segment (all brands) 2. Market share by channel (all brands) 3. Consumer preference study 4. Marketing effectiveness report 5. Sales by segment by channel (own brand) 6. Consumer shopping habits study 7. Product positioning report
38
Market Share by Segment ReportMarket Share by Segment Report
Brand
Firm 1Firm 2Firm 3Firm 4
Total Sales(units)
1
0.2500.2500.2500.250
20,028
2
0.2500.2500.2500.250
15,084
3
0.2500.2500.2500.250
25,104
4
0.2500.2500.2500.250
10,240
5
0.2500.2500.2500.250
22,056
6
0.2500.2500.2500.250
8,092
Segment
Who’s selling to whom?Who’s buying what? What is each firm’s achieving?Which segments are buying?
39
Market Share by Channel ReportMarket Share by Channel Report
Brand
Firm 1Firm 2Firm 3Firm 4
Total Sales(units)
Channel 1
0.2500.2500.2500.250
56,296
What’s selling where?Who’s buying what?
Channel 2
0.2500.2500.2500.250
44,308
40
Consumer Preference StudyConsumer Preference Study
Segment
Students
Home
Assistants
Creators
Managers
Parents
SpecialCommands
10-13
7-10
10-13
12-15
13-16
5-8
ErrorProtection
2-4
2-4
6-8
2-4
6-8
2-4
Ease ofLearning
1-3
6-8
6-8
4-6
2-4
7-9
PriceRange
low
low
high
high
high
low
What kind of product would a segment prefer?What reference price seems typical for the segment?How are segments similar and different?
What kind of product would a segment prefer?What reference price seems typical for the segment?How are segments similar and different?
41
Marketing Effectiveness ReportMarketing Effectiveness Report
Brand AwarenessCustomer Service Consumer Group Rating Industry Average Rating
Channel 1: Sales Rep Workload Dealer Satisfaction Channel Strength (“Push”)
Channel 2: Sales Rep Workload Dealer Satisfaction Channel Strength (“Push”)
Index0.550
100%100%
100%1.00.500
100%1.00.500
Competitorswith lower
Index0
00
00
Competitorswith equal orhigher Index
3
33
33
42
Detailed Sales AnalysisDetailed Sales Analysis
Firm
Channel 1
Channel 2
1
896
5,269
2
1,109
3,337
3
5,602
1,396
4
1,808
1,196
5
4,363
1,865
6
1,086
1,074
Segment
Unit sales by segment and channelAre you reaching your target?
43
Customer Shopping HabitsCustomer Shopping Habits
Segment
Students
Home
Assistants
Creators
Managers
Parents
Percent of Shopping
in Channel 1
?
?
?
?
?
?
Who shops where?How do shopping patterns match distribution focus?
Percent of Shopping
in Channel 2
?
?
?
?
?
?
44
Product Positioning ReportProduct Positioning Report
Brand
Firm 1Firm 2Firm 3Firm 4
1
????
2
????
3
???
?
4
????
5
????
6
????
Segment
Which brands are closest to which segments?Which segments have no close brands?
36
Submitting Marketing PlansSubmitting Marketing Plans
Submitting marketing plans decisions Due when stated, send your plan early send to
[email protected] Past decision will be used if you miss the deadline, check to see if
receipt is confirmed Results will be returned to person submitting plan Even if you do not want to make changes still submit a plan The game starts at level 2 and moves to level 3 when you are
notified Each firm has a distinct industry and firm identification
Need to keep it straight! Remember to use you assigned Industry and Firm number
Example Industry A Firm 1 your file will be PlanA1.tmg Do not send the proforma.txt file. Check the file before you send it to make sure changes have been
saved.