Outline lecture timetable and content:

1. Sustainable ManagementSession 1Product and Services – an introduction and relationship with the marketing mixColin LoveDirector MSc Strategic Marketingc.love@imperial.ac.uk

2. Outline lecture timetable and content:

3. Some concepts and discussions: • What is marketing? • Where do products and services fit in? • What processes are involved? • How do products and services add value to an organization? • Sales / profits • Goodwill / brand value • Where are Products and Services going? • How do we manage products and services

4. Marketing – setting the scene • Is it a science ? – rigorous, measurable, strategic • Is it an art ? – pragmatic, creative, gut feel • Key to corporate success – product and service • Success in the past 10 years based on putting customers first • Product and Services are the key component of an organisations strategic toolbox The Green Customer is King

5. Steve Jobs: Innovator – Marketer – Entrepreneur? Brand Value driven by products and services Apple - $182Bn Coca Cola -$74BN SINGAPORE GDP $182Bn

6. Marketing as a Business Philosophy • What is Market Orientation? • The organisation-wide collection, analysis, dissemination and response to information on competitors and consumers • Customer and Market facing • Market oriented firms are generally: • More innovative • More profitable

7. The Marketing Mix The Marketing Mix as the central concept: • The marketing tool box – classical 4 P’s • Product • Price • Promotion • Place • 5th P? A useful explanation of the development and execution of the Marketing Plan

8. Marketing cycle – and important links

9. Product Life Cycle:

10. Simplistic New Product Development process - NPD

11. Today – main focus on hard tactile product:

12. What is a product?

13. Steve Jobs: Innovator – Marketer – Entrepreneur? "Design is not just what it looks like. Design is how it works.” Interview with The New York Times, 2003

14. Product or Service: Can You Tell the Difference? Product transition to Services Banking Medicare Entertainment Intangible Inseparable Variable Perishable Fast Moving Consumer goods Hard / tactile Consumer durable Hard / tactile plus Service / Warranty Pure PRODUCT Pure SERVICE

15. Other elements of the Marketing Mix:

16. PRICE – what is it? The cash that customer pays for a good or service • Includes VAT – ( collected on behalf of Govt) • Includes delivery • Includes installation • Includes duties • Includes local taxes………. • Includes whatever………… • Usually expressed as RRP Influenced by scope of augmented product features

17. PROMOTION – what is it? Its not all sex, drugs and rock ‘n’ roll Includes • Advertising – all media • Sales promotion – all channels • Sales Forces / Direct Marketing • PR • Testimonials • Sponsorship • Internet • Social Media • and it’s a Major Marketing Spend!!

18. Place - Channels of Trade • A bridge for customer access to the marketing mix • ordering / purchasing • delivery / pick up • leisure • Places • Physical – retail shops, markets • Non physical – direct channels • direct mail / mail order / tv / direct selling • internet / mobiles / social media -the growth area

19. “Why join the navy if you can be a pirate?” It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them

20. Group Discussion • Outline the perceived marketing mix for Formula 1 ? • 4 groups • Product / price / place / promotion

21. Product Price F1 marketing mix:

22. Promotion Place F1 marketing mix:

23. F1 – Marketing Mix: • What does this tell us about the F1 product? • Product? • Service? • Hard / Soft • Development? • Where does the product add value?

24. Group Assignment – background – the CEO: The CEO of a top ‘services’ company is concerned that the contribution from generic growth or further opportunities from M&A / Strategic Alliances is unlikely to generate significant increases in profit in the next 5 years The CEO has briefed the companies management team to develop a ‘breakout product or service’ to leverage the existing corporate position and resources to dramatically grow the company The CEO is under extreme pressure from shareholders and other key stakeholders to deliver sustainable corporate growth

25. Group Assignment – the brief – YOU - the management team The CEO has briefed the following 4 elements for development: • A strategic/marketing review of the current environment • The identification of a break out concept which is executable by the organization – either products or services • rationale for development • competency gaps • resource requirements • An outline of the key development steps – set against a timeline and broad financial targets • The new concept must be sustainable and meet stakeholder CSR expectations The concept should have significant scale!!

26. Group assignment – assessment – Thursday 29th December A presentation to be delivered in the final lecture. Maximum 20 minutes with 3-5 minutes for Q&A. The presentation should take the following format / role play: • The presentation should represent the CEO publicizing the new concept and expected incremental contribution to the company. The CEO can have other members of the management team joining the presentation • The presentation should address the 4 key points in the brief • Assume the audience is made up of shareholders / media / institutions / EU agencies / other stakeholders • Use ‘ppt’ to deliver the presentation • Use ‘ppt note pages’ as a summary report • I would expect max 10 content pages • Less is more!!

27. Case study questions for discussion: Developing New Products and Services: Consider: NPD Entrepreneurship Technology diffusion