PollEverywhere – 1 more week!

1. PollEverywhere – 1 more week! • Text ‘UWMBUSINESS’ to 37607 to begin session • Backup number: (747) 444 3548 • The app doesn’t work

2. Notice: for Wednesday • READ CHAPTER 3: If you have any Social media/mobile questions, note them down, bring them

4. Is this an accurate quote from Myopia? "Consumers are unpredictable, varied, fickle, stupid, shortsighted, stubborn, and generally bothersome.”

6. How consumers make decisions

7. Concept??

9. Value = Benefits versus Costs

10. What I Get What I give Value • Consumers make explicit, implicit trade-offs when making purchases. Ratio of benefits/costs = VALUE • They look to maximize benefits and minimize costs

11. Developing Marketing Strategies and a Marketing Plan Ref: Text, chapter 2

13. What’s a “Marketing Strategy”? • a marketing strategy is essentially a road-map that identifies: • The firm’s target market  who we want to reach (with our product) • The marketing mix to be used by the firm,  how we will do thatand • A “sustainable competitive advantage”  this is how we’re different

14. Process of strategic planning:

16. Process of strategic planning:

18. What about colectivo??

21. Step 2 – Conduct a Situation Analysis • This is usually done with a SWOT (Strengths – Weaknesses – Opportunities – Threats) Analysis • Strengths and Weaknesses relate to the internal environment of a firm; • Opportunities and Threats in terms of CDSTEP: • Cultural and Demographic changes • Social and Technological changes • Economic and Political forces and changes

22. SWOT? • Strengths – positive internal attributes of the firm • Weaknesses – negative (internal) attributes of the firm • Opportunities – positive aspects of the external environment that can benefit the firm • Threats – negative aspects of the company’s external environment

26. SWOT? • Strengths – positive internal attributes of the firm • Weaknesses – negative (internal) attributes of the firm • Opportunities – positive aspects of the external environment that can benefit the firm • Threats – negative aspects of the company’s external environment

30. Step 3 – Segmentation, Targeting, and Positioning (“STP”) • The firm first divides the marketplace into homogeneous subgroups (“segments”), • Decides which segments to pursue or “target”, • and determines how it should “position” its products to best meet the needs of those targeted segments

31. Step 3 – Segmentation, Targeting, and Positioning (“STP”) • MarketSegmentation– is the process of dividing a market into homogeneous groups of customers.

33. STP • Then comes Targeting. The firm decides which segments to pursue or focus its efforts on, using a process called “targeting” or “target marketing”

34. Ace wants you think of it as “the helpful place”

36. STP • The firm then decides how it wants to be Positioned within those segments. The idea is to occupy a clear and distinct “position” in consumers’ minds, in terms of what the product stands for and how it is distinct from competitors.

40. Step 4 – Implement the 4P’s and Allocate Resources • Marketers implementthe marketing mix: • Product – creating value • Price – capturing value • Place – delivering value • Promotion – communicating value

41. T-i-m-e

42. Step 5 – Evaluate Performance using Marketing Metrics What is a metric? • A measuring system that quantifies something

43. Step 5 – Evaluate Performance using Marketing Metrics • Commonly used metrics: revenues, profits, relative sales and profits, impact on environment, diversity, energy conservation initiatives, protecting human rights (of employees), social media metrics • It is important NOT to rely just on one metric, as any attempt to maximize one metric may lower another

44. Wells Fargo

45. Portfolio Analysis (A tool to use in Step 5) • In this: • Management evaluates the firm’s various products and businesses – its “portfolio” – and • Allocates resources according to which products are expected to be the most profitable in the future

46. BCG: best-known portfolio analysis tool • Developed by the Boston Consulting Group

47. BCG Product Portfolio Matrix

49. BCG – Quadrants • Stars (upper left) • Because of the high growth rate of the market, stars often require heavy resource investment in such things as promotions • Cash cows (lower left) • These are high market share products in a low-growth market. They have excess resources that can be pumped into products that need it

50. BCG – Quadrants • Question marks (upper right) • Have low market shares in high-growth markets. Require significant resources • Dogs (lower right) • These are low market share products in a low-growth market. They have enough resources to sustain themselves. They may need to be phased out