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+




    MBA/570

    Sustainable Customer Relationships

    March / April 2009
+
    Agenda

        Housekeeping
    

        Marketing in the news
    

        Workshop 2 review: major concepts
    

        Discussion: Z-Wing marketing plan
    

        Weekly inspiration: remarkable marketing
    

        Next time…
    




                                              MAR / APR 2009
In the News
+
    Marketing in the news

        Sneaky car marketing
    




                               MAR / APR 2009
+
    Marketing in the news

        Sneakier car marketing
    




                                 MAR / APR 2009
Twitter 101
Source: http://www.commoncraft.com/twitter
Source: http://www.ted.com/talks/view/id/473
+
A Branding Story
+
    Top 10 Brand Recognition

Think about brands or names            Coca-cola
                                 1.
                                       Sony
of products and services you     2.
                                       Toyota
                                 3.
know. Considering
                                       Dell
                                 4.
everything, which three brands
                                       Ford
                                 5.
do you consider the best?
                                       Kraft
                                 6.
                                       Pepsi
                                 7.
                                       Microsoft
                                 8.
                                       Apple
                                 9.
                                       Honda
                                 10.



                                          MAR / APR 2009
MAR / APR 2009
+
    The Pepsi Challenge

        If people like the taste of Pepsi better, why do they
    
        drink Coke?

        If people like Dunkin’ Donuts coffee better why do
    
        they drink Starbucks?




                                                 MAR / APR 2009
+
+
    The Pepsi Challenge

        fMRI Give us a clue
    

        When people know the
    
        brand they are drinking,
        they prefer Coca Cola

        Impact shown in the pre-
    
        frontal cortex




                                   MAR / APR 2009
+
                     Workshop II Review




MAR / APR 2009
The
Perfect
Pepsi
+
    The Marketing Mix

        The 4 P’s
    




                        MAR / APR 2009
Spaceman
                    3000
 From Pluto




                 Eight Arms to
Would I lie to     Hold You
   You?
NEW PRODUCTS AND WHY THEY
      SUCCEED OR FAIL

• What is a New Product?
   Newness Compared with Existing Products
   Newness in Legal Terms (Regular Distribution?)
    • Regular Distribution


   Newness from the Company’s Perspective




                             MAR / APR 2009
                                              Slide 10-16
Sony’s PlayStation 2 and Microsoft’s Xbox
                How does the term “new” apply?




PS2                                                      Xbox



                                        MAR / APR 2009
                                                            Slide 10-17
FIGURE 10-BWhat it takes to launch one
commercially successful new product




                           MAR / APR 2009
                                            Slide 10-22
+
                     Multi-Channel Marketing




MAR / APR 2009       MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS
+
    Multichannel Marketing

        What is it?
    

        NFL & NFLshop.com
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
NFL Fantasy Football




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
NFL Weekly Update E-Mail
NFL Commercial
NFL Shop Catalog
NFLSHOP.COM
Facebook Advertisement
The Next E-Mail
+
    Putting it all together

        Web – Fantasy Football
    
            He likes the Steelers
        


        E-Mail – weekly game preview
    

        Television – Steelers gear commercial
    

        Direct mail – customized catalog
    

        NFLShop.com – more customization
    

        Facebook – discount for abandoned shopping cart
    

        E-Mail – game preview with gear advertisement
    



MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS    MAR / APR 2009
+
    Multichannel Marketing Multiplier




        Web – Fantasy Football
    
MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
FIGURE 21-5 Why consumers shop and buy
     online




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-30
+
    The Long Tail




        The internet opens new markets by aggregation
    



MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
+
    The Long Tail




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
FIGURE 21-1 Trend in online shoppers and
     online retail sales revenue in the United
     States




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-7
FIGURE 21-2 Website design elements that
     drive customer experience




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-15
Harley-Davidson
                           What customer experience is created
                                     by its website?




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS          MAR / APR 2009
                                                                       Slide 21-16
FIGURE 21-3 Internet access at home
     among U.S. households




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-21
FIGURE 21-4 Online consumer retail sales
     by product/service category: 2003 and 2007




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-28
MULTICHANNEL MARKETING
                TO THE ONLINE CONSUMER

       • Integrating and Leveraging Multiple
         Channels with Multichannel Marketing
              Dual Distribution
              Multichannel Retailers
             Multichannel Marketing




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-41
FIGURE 21-6 Implementing multichannel
     marketing with promotional websites




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
                                                                Slide 21-44
One More Example…




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   MAR / APR 2009
+
+
                     Marketing Research
                     The biggest error people make in interpreting research




MAR / APR 2009
Ice Cream & Shark Attacks
shark attacks




                ice cream sales
Correlation ≠ Causation
+
                     Marketing Planning




MAR / APR 2009
FIGURE 22-2 The strategic marketing
process: actions and information




                           MAR / APR 2009
                                            Slide 22-13
FIGURE A The strategic marketing phases
and corresponding output reports




                          MAR / APR 2009
                                           Slide 22-14
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS

• The Variety of Marketing Plans
   Long-Range Marketing Plans
   Annual Marketing Plans




                             MAR / APR 2009
                                              Slide 22-15
FIGURE 22-3 Steps a large consumer
packaged goods firm takes in developing its
annual marketing plan




                            MAR / APR 2009
                                              Slide 22-16
+
    Porter’s four generic business strategies




                                MAR / APR 2009
+ Porter’s four generic business strategies

   Cost Leadership – Differentiation – Cost Focus – Differentiation Focus




                                                    MAR / APR 2009
+ Porter’s Competitive Threat Landscape




                               MAR / APR 2009
+
    SWOT Analysis




                    MAR / APR 2009
The Product Life Cycle




                         MAR / APR 2009
Overlap of Life Cycle for Products A and B




                  WINDOWS 3.1




                                WINDOWS 95




1991   1995         1996         1997
+
                     Yoplait Case Study




MAR / APR 2009
+
    Yoplait Case Study
        Why do you eat yogurt?
    

        Because it tastes good: 48%.
    

        For weight watching: 18%.
    

        To maintain good health: 12%.
    

        Where is yogurt in the PLC?
    




                                        MAR / APR 2009
+
                     Z-Wing Marketing Plan
                     Discussion




MAR / APR 2009
+
    Z-Wing Marketing Discussion
        Group C: Market Summary, SWOT Analysis, Competition
    

        Group E: Product Offerings, Keys to Success, Critical
    
        Issues

        Group F: Historical Results, Macro environment, Mission,
    
        Mktg. Objectives

        Group B: Financial Objectives, Target Markets,
    
        Positioning

        Group A: Strategies, Marketing Mix (4P’s), Marketing
    
        research

        Group D: Financials (sales & break even),
    
        Implementation, Contingency Planning


                                                    MAR / APR 2009
+
                     Remarkable Marketing




MAR / APR 2009
+
+
                     Create customer feedback loops




MAR / APR 2009
+
    Customer feedback loops

        How does your company solicit feedback?
    

        Surveys
    

        Customer service
    

        Returns
    

        Share of voice
    

        Brand recognition
    




                                            MAR / APR 2009
+
    Six Sigma

        DMAIC
    

        Design – Measure – Analyze – Improve - Control
    




                                             MAR / APR 2009
+
    Concept Review

        Select appropriate product development initiatives
    

        Create product implementation plans across
    
        organization functions

        Create customer feedback loops
    

        Develop metrics to track implementation and product
    
        performance




                                               MAR / APR 2009
+
    Next Time. . .

        Understanding customer value
    

        Classic Airlines Problem Definition
    
            in class – classic airlines benchmarking
        


        Field trip?
    




                                                       MAR / APR 2009
+
    Information Density

     “I have only made this letter longer because I have not had
     the time to make it shorter.”

     Blaise Pascal, (1623-1662) Lettres provinciales.




                                                    MAR / APR 2009

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mba570.marapr09.class3

  • 1. + MBA/570 Sustainable Customer Relationships March / April 2009
  • 2. + Agenda Housekeeping  Marketing in the news  Workshop 2 review: major concepts  Discussion: Z-Wing marketing plan  Weekly inspiration: remarkable marketing  Next time…  MAR / APR 2009
  • 4.
  • 5.
  • 6. + Marketing in the news Sneaky car marketing  MAR / APR 2009
  • 7. + Marketing in the news Sneakier car marketing  MAR / APR 2009
  • 11. +
  • 13. + Top 10 Brand Recognition Think about brands or names Coca-cola 1. Sony of products and services you 2. Toyota 3. know. Considering Dell 4. everything, which three brands Ford 5. do you consider the best? Kraft 6. Pepsi 7. Microsoft 8. Apple 9. Honda 10. MAR / APR 2009
  • 14. MAR / APR 2009
  • 15. + The Pepsi Challenge If people like the taste of Pepsi better, why do they  drink Coke? If people like Dunkin’ Donuts coffee better why do  they drink Starbucks? MAR / APR 2009
  • 16. +
  • 17. + The Pepsi Challenge fMRI Give us a clue  When people know the  brand they are drinking, they prefer Coca Cola Impact shown in the pre-  frontal cortex MAR / APR 2009
  • 18. + Workshop II Review MAR / APR 2009
  • 20.
  • 21. + The Marketing Mix The 4 P’s  MAR / APR 2009
  • 22. Spaceman 3000 From Pluto Eight Arms to Would I lie to Hold You You?
  • 23. NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL • What is a New Product?  Newness Compared with Existing Products  Newness in Legal Terms (Regular Distribution?) • Regular Distribution  Newness from the Company’s Perspective MAR / APR 2009 Slide 10-16
  • 24. Sony’s PlayStation 2 and Microsoft’s Xbox How does the term “new” apply? PS2 Xbox MAR / APR 2009 Slide 10-17
  • 25. FIGURE 10-BWhat it takes to launch one commercially successful new product MAR / APR 2009 Slide 10-22
  • 26. + Multi-Channel Marketing MAR / APR 2009 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS
  • 27. + Multichannel Marketing What is it?  NFL & NFLshop.com  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 28. NFL Fantasy Football MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 35. + Putting it all together Web – Fantasy Football  He likes the Steelers  E-Mail – weekly game preview  Television – Steelers gear commercial  Direct mail – customized catalog  NFLShop.com – more customization  Facebook – discount for abandoned shopping cart  E-Mail – game preview with gear advertisement  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 36. + Multichannel Marketing Multiplier Web – Fantasy Football  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 37.
  • 38. FIGURE 21-5 Why consumers shop and buy online MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-30
  • 39. + The Long Tail The internet opens new markets by aggregation  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 40. + The Long Tail MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 41. FIGURE 21-1 Trend in online shoppers and online retail sales revenue in the United States MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-7
  • 42. FIGURE 21-2 Website design elements that drive customer experience MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-15
  • 43. Harley-Davidson What customer experience is created by its website? MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-16
  • 44. FIGURE 21-3 Internet access at home among U.S. households MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-21
  • 45. FIGURE 21-4 Online consumer retail sales by product/service category: 2003 and 2007 MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-28
  • 46. MULTICHANNEL MARKETING TO THE ONLINE CONSUMER • Integrating and Leveraging Multiple Channels with Multichannel Marketing  Dual Distribution  Multichannel Retailers Multichannel Marketing MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-41
  • 47. FIGURE 21-6 Implementing multichannel marketing with promotional websites MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009 Slide 21-44
  • 48. One More Example… MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS MAR / APR 2009
  • 49. +
  • 50. + Marketing Research The biggest error people make in interpreting research MAR / APR 2009
  • 51.
  • 52. Ice Cream & Shark Attacks shark attacks ice cream sales
  • 53.
  • 55. + Marketing Planning MAR / APR 2009
  • 56. FIGURE 22-2 The strategic marketing process: actions and information MAR / APR 2009 Slide 22-13
  • 57. FIGURE A The strategic marketing phases and corresponding output reports MAR / APR 2009 Slide 22-14
  • 58. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS • The Variety of Marketing Plans  Long-Range Marketing Plans  Annual Marketing Plans MAR / APR 2009 Slide 22-15
  • 59. FIGURE 22-3 Steps a large consumer packaged goods firm takes in developing its annual marketing plan MAR / APR 2009 Slide 22-16
  • 60. + Porter’s four generic business strategies MAR / APR 2009
  • 61. + Porter’s four generic business strategies Cost Leadership – Differentiation – Cost Focus – Differentiation Focus MAR / APR 2009
  • 62. + Porter’s Competitive Threat Landscape MAR / APR 2009
  • 63. + SWOT Analysis MAR / APR 2009
  • 64. The Product Life Cycle MAR / APR 2009
  • 65. Overlap of Life Cycle for Products A and B WINDOWS 3.1 WINDOWS 95 1991 1995 1996 1997
  • 66. + Yoplait Case Study MAR / APR 2009
  • 67.
  • 68. + Yoplait Case Study Why do you eat yogurt?  Because it tastes good: 48%.  For weight watching: 18%.  To maintain good health: 12%.  Where is yogurt in the PLC?  MAR / APR 2009
  • 69. + Z-Wing Marketing Plan Discussion MAR / APR 2009
  • 70. + Z-Wing Marketing Discussion Group C: Market Summary, SWOT Analysis, Competition  Group E: Product Offerings, Keys to Success, Critical  Issues Group F: Historical Results, Macro environment, Mission,  Mktg. Objectives Group B: Financial Objectives, Target Markets,  Positioning Group A: Strategies, Marketing Mix (4P’s), Marketing  research Group D: Financials (sales & break even),  Implementation, Contingency Planning MAR / APR 2009
  • 71. + Remarkable Marketing MAR / APR 2009
  • 72. +
  • 73. + Create customer feedback loops MAR / APR 2009
  • 74. + Customer feedback loops How does your company solicit feedback?  Surveys  Customer service  Returns  Share of voice  Brand recognition  MAR / APR 2009
  • 75. + Six Sigma DMAIC  Design – Measure – Analyze – Improve - Control  MAR / APR 2009
  • 76. + Concept Review Select appropriate product development initiatives  Create product implementation plans across  organization functions Create customer feedback loops  Develop metrics to track implementation and product  performance MAR / APR 2009
  • 77. + Next Time. . . Understanding customer value  Classic Airlines Problem Definition  in class – classic airlines benchmarking  Field trip?  MAR / APR 2009
  • 78. + Information Density “I have only made this letter longer because I have not had the time to make it shorter.” Blaise Pascal, (1623-1662) Lettres provinciales. MAR / APR 2009