Today’s Topic: Today’s Topic: The Marketing FunctionThe Marketing Function

What it is; What it is;

why it matters; why it matters;

and how to makeand how to make

Marketing MixMarketing Mix

decisionsdecisions

Course ScheduleCourse Schedule

The Marketing Function (Lenovo)The Marketing Function (Lenovo) Sales & Sales Channels (GolfLogix)Sales & Sales Channels (GolfLogix) Internet-based Marketing (HubSpot)Internet-based Marketing (HubSpot) R&D: Product Development (Guidant)R&D: Product Development (Guidant) Operations (Crocs)Operations (Crocs)

Product Launch (Invisalign)Product Launch (Invisalign) Final Exam on Product Launch (Emotiv)Final Exam on Product Launch (Emotiv)

Today’s AgendaToday’s Agenda

Mid-course feedback survey resultsMid-course feedback survey results The marketing function and The marketing function and

marketing mix decisionsmarketing mix decisions Return graded mid-term examsReturn graded mid-term exams Developing a marketing plan: Developing a marketing plan:

Lenovo – Building a Global Brand (case)Lenovo – Building a Global Brand (case) Readings/assignment for next Readings/assignment for next

week: week: sales channels (GolfLogix case)sales channels (GolfLogix case)

Today’s Key LearningsToday’s Key Learnings

Marketing roles and responsibilitiesMarketing roles and responsibilities

The marketing mixThe marketing mix

Company and product positioning (with, Company and product positioning (with, against, content)against, content)

Promoting a product (marketing Promoting a product (marketing communication)communication)

The Marketing PlanThe Marketing PlanExecutive SummaryExecutive SummaryTable of ContentsTable of ContentsSummary of Current SituationSummary of Current SituationFocused Assessment of Market OpportunityFocused Assessment of Market OpportunityFinancial and Marketing GoalsFinancial and Marketing GoalsSummary of Company’s Marketing StrategySummary of Company’s Marketing Strategy

Target MarketTarget MarketProduct/ServiceProduct/Service

PositioningPositioningDistributionDistributionPricePricePromotionPromotion

Marketing Budget (Monthly)Marketing Budget (Monthly)Forecast Unit Sales and Revenues (Monthly)Forecast Unit Sales and Revenues (Monthly)Plan to Monitor/Evaluate Action Plans by Plan to Monitor/Evaluate Action Plans by PeriodPeriod

The Marketing Mix: The Marketing Mix: C+4PC+4P

(Target)CustomerProduct

Price(s)

Place

Promotion

Taken together, the 4P’s define __?__

Marketing is responsible Marketing is responsible for for

“marketing mix” “marketing mix” decisions decisions (C + 4P’s)(C + 4P’s)

CCustomers/needs to be targeted (target ustomers/needs to be targeted (target customer segments)customer segments)

PProduct (product, positioning, service,…)roduct (product, positioning, service,…) PPrice (levels and strategies)rice (levels and strategies) PPromotion (communication) romotion (communication) PPlace (sales/distribution methods)lace (sales/distribution methods)

If that’s what If that’s what marketing does…marketing does…

who’s responsible who’s responsible for revenues and for revenues and

profits?profits?

The only choices The only choices are…….are…….

Senior mgmt (CEO/president, group Senior mgmt (CEO/president, group head, ...)head, ...)

Marketing Marketing R&DR&D SalesSales Operations (manuf, service ops, logistics)Operations (manuf, service ops, logistics) Support: IT, Finance, HR, Legal, Support: IT, Finance, HR, Legal, Investor Relations, Public/MediaInvestor Relations, Public/Media Relations (PR), etcRelations (PR), etc

What is Marketing’s What is Marketing’s “true north” in making “true north” in making

mix decisions?mix decisions?

What is Marketing’s “true What is Marketing’s “true north” north”

in making mix decisions?in making mix decisions?

Market and financial Market and financial objectivesobjectives

for the product, for the product,

based on based on corporate corporate strategy/objectivesstrategy/objectives (if (if

relevant), relevant),

guided by the company’s guided by the company’s competitive advantagescompetitive advantages

Mix elements: Mix elements: CustomersCustomers

Targeted end-customersTargeted end-customers (a (a subsetsubset of the entire market) of the entire market)

Identified by:Identified by: Names /group identityNames /group identity DemographicsDemographics PsychographicsPsychographics NeedsNeeds

Specificity simplifies other mix Specificity simplifies other mix decisionsdecisions!!

Mix elements: Mix elements: ProductProduct

Product features/functionality (“product Product features/functionality (“product itself”)itself”)

Cost target (and/or profit target)Cost target (and/or profit target) Competitive positioningCompetitive positioning, and fit with corporate , and fit with corporate

(brand) positioning(brand) positioning NameName PackagingPackaging Customer serviceCustomer service Breadth and depth of product line (versions)Breadth and depth of product line (versions) ……

Product Positioning Product Positioning StatementStatement

““Our product,Our product,

compared to compared to relevant competitorsrelevant competitors,,

is the one that…is the one that…

……(has these (has these differentiatorsdifferentiators))

……and/or and/or

(provides these (provides these benefitsbenefits)”)”

Mix elements: Mix elements: PricePrice

PricePricess: manufacturer, wholesaler, : manufacturer, wholesaler, distributordistributor

Payment terms and conditionsPayment terms and conditions WarrantyWarranty Discount policiesDiscount policies Price strategy vs. competitorsPrice strategy vs. competitors Bidding tacticsBidding tactics ……

Mix elements: Mix elements: PlacePlace

Channel choice: direct and/or indirect Channel choice: direct and/or indirect Channel length and breadthChannel length and breadth Channel partner selectionChannel partner selection Franchising policiesFranchising policies Channel coordination and controlChannel coordination and control Channel competenciesChannel competencies Channel training (sales and product)Channel training (sales and product) ……

Mix elements: Mix elements: PromotionPromotion Branding Branding (creating a company or product (creating a company or product

“image”)“image”) Advertising Advertising (multiple media; paid and free)(multiple media; paid and free) Direct marketing Direct marketing (mail, catalog, telemarketing, (mail, catalog, telemarketing,

internet)internet) ““Reference” customers Reference” customers (testimonials)(testimonials) Public relations Public relations Industry relations Industry relations (trade orgs, industry analysts,(trade orgs, industry analysts,

…)…) Trade shows and eventsTrade shows and events Price promotionsPrice promotions ……

Promotion:Promotion:message and mediamessage and media

Message: most often the “message” Message: most often the “message” is the positioning statement itself, is the positioning statement itself, often expressed in an attention-often expressed in an attention-grabbing waygrabbing way

Media: identifying the most effective Media: identifying the most effective “media” for delivering the message “media” for delivering the message is, driven by consideration of who is, driven by consideration of who the “positioning targets” arethe “positioning targets” are

The mix should “fit” The mix should “fit” with…..with…..

Needs/desires of the Needs/desires of the target customerstarget customers The The company’s competencies and “image”company’s competencies and “image” CompetitorsCompetitors and their strategies/programs and their strategies/programs Channel partners’Channel partners’ needs and competencies needs and competencies

And….the And….the competitive advantagecompetitive advantage decision decision

The Marketing PlanThe Marketing Plan

Summary of Current SituationSummary of Current SituationFocused Assessment of Market OpportunityFocused Assessment of Market OpportunityFinancial and Marketing GoalsFinancial and Marketing GoalsSummary of Company’s Marketing StrategySummary of Company’s Marketing Strategy

Target MarketTarget MarketProduct/ServiceProduct/Service

PositioningPositioningDistributionDistributionPricePricePromotionPromotion

Marketing Budget (Monthly)Marketing Budget (Monthly)Forecast Unit Sales and Revenues (Monthly)Forecast Unit Sales and Revenues (Monthly)Plan to Monitor/Evaluate Action Plans by Plan to Monitor/Evaluate Action Plans by PeriodPeriod

Marketing readings Marketing readings for 10/26for 10/26

Creating a Marketing Plan: An OverviewCreating a Marketing Plan: An Overview (read to understand the specific components (read to understand the specific components

of each element of the marketing mix)of each element of the marketing mix)

Lenovo: Building a Global BrandLenovo: Building a Global Brand (case)(case)

Lenovo caseLenovo case Case timeframe is 2006Case timeframe is 2006 Lenovo is the leading maker of PCs in ChinaLenovo is the leading maker of PCs in China Lenovo has acquired the IBM worldwide PC Lenovo has acquired the IBM worldwide PC

division; acquisition completed in late 2005division; acquisition completed in late 2005 Lenovo has to create a marketing strategy Lenovo has to create a marketing strategy

for the combined companyfor the combined company Includes: rationalizing the product lines, Includes: rationalizing the product lines,

creating a new brand strategy, and creating a new brand strategy, and launching promotional activities to roll-out launching promotional activities to roll-out the new brand and productsthe new brand and products

Marketing assignment Marketing assignment for 10/26for 10/26

What was Lenovo’s financial situation* before the What was Lenovo’s financial situation* before the acquisition (2005)? What is the projected financial acquisition (2005)? What is the projected financial impact of the acquisition (2006-8)?impact of the acquisition (2006-8)?

What were Lenovo’s pre-acquisition competitive What were Lenovo’s pre-acquisition competitive advantages? What CA’s were obtained via the advantages? What CA’s were obtained via the acquisition?acquisition?

Which of the branding alternatives (p. 9) should Which of the branding alternatives (p. 9) should Lenovo have chosen? (Consider the positives-and-Lenovo have chosen? (Consider the positives-and-negatives of each alternative in arriving at your negatives of each alternative in arriving at your decision.)decision.)

How should the Lenovo brand be positioned vs. How should the Lenovo brand be positioned vs. competitors’ brands? Do the positionings of Think and competitors’ brands? Do the positionings of Think and 3000 (Ex. 9a) “fit” well within the Lenovo positioning?3000 (Ex. 9a) “fit” well within the Lenovo positioning?

* Use Exhibits 1a and 1b, not “Selected Company Financials”

Considerations in Creating Considerations in Creating a Positioning Statementa Positioning Statement

Who are you positioning yourself Who are you positioning yourself “with” ?“with” ?

What are their desires/needs and What are their desires/needs and

fears/concerns ?fears/concerns ?

Who/what are you positioning Who/what are you positioning “against” ?“against” ?

What are your differentiators ?What are your differentiators ?

Today’s Key LearningsToday’s Key Learnings

Marketing roles and responsibilitiesMarketing roles and responsibilities

The marketing mixThe marketing mix

Company and product positioning (with, Company and product positioning (with, against, content)against, content)

Promoting a product (marketing Promoting a product (marketing communication)communication)

Topic for 11/2 Class:Topic for 11/2 Class:Sales (Distribution Sales (Distribution

Channels)Channels)

How companies reach their customers: How companies reach their customers: types of sales channels available types of sales channels available

Rationale for choosing which sales Rationale for choosing which sales channel(s) to usechannel(s) to use

Issues in “managing” and serving sales Issues in “managing” and serving sales channelschannels

Impacts of channel choice on the design Impacts of channel choice on the design of the “whole product”of the “whole product”

Sales Readings Sales Readings for 11/2 Classfor 11/2 Class

Going to MarketGoing to Market - read to understand - read to understand typestypes of sales channels, and the reasons of sales channels, and the reasons for choosing themfor choosing them

GolfLogix: Measuring the Game GolfLogix: Measuring the Game of Golf of Golf (case)(case)

GolfLogix Case SummaryGolfLogix Case Summary

A start-up company in 2002A start-up company in 2002 Uses GPS technology to aid golfersUses GPS technology to aid golfers Two product versions: “distance Two product versions: “distance

only” and “complete system”only” and “complete system” Currently selling to/through golf Currently selling to/through golf

coursescourses Considering also using retail Considering also using retail

channels (would require a channels (would require a modification to their product)modification to their product)

Sales questions for 11/2 Sales questions for 11/2 classclass

What are the most significant end-customer and sales What are the most significant end-customer and sales channel benefits of the each of the GolfLogix products?channel benefits of the each of the GolfLogix products?

What is the market potential (number sold and What is the market potential (number sold and GolfLogix revenues) of each of the GolfLogix products?GolfLogix revenues) of each of the GolfLogix products?

Who are the appropriate target customers for the Who are the appropriate target customers for the Distance Only product? For the Complete System?Distance Only product? For the Complete System?

What are the positives-and-negatives of selling through What are the positives-and-negatives of selling through golf courses? Through retail channels?golf courses? Through retail channels?

If only one of the channels can be chosen, which one If only one of the channels can be chosen, which one should GolfLogix use? Given the option of selling should GolfLogix use? Given the option of selling through both channels, should GolfLogix do that?through both channels, should GolfLogix do that?