SENECA COLLEGE, TORONTO

MRK 200,  MARKETING II SECTION D As Taught by Prof. Tim Richardson Sept - Dec 2004

Chpt 19 Developing Innovative            Marketing Plans

clcik on the screen capture to see the unit on SWOT SWOT Analysis  www.witiger.com/ecommerce/GOPSTSWOT.htm

Chpt 19

Forecasting Target Market Potential and Sales Three Levels of forecast 1. National Income Forecast         ( usually done by government staff or employees of very very large companies) 2. Industry Sales Forecast          (usually done when a company dominates the industry) 3. Specific company forecast.

Chpt 19 p. 549-550 9th edition p. 605 10th edition

.  Sales Analysis depending on various influencing circumstances     geographic region product, (package size, colour, etc.) customer size (number of customers) customer type (gov't, civilian)(single, married)(with kids, no kids) price or discount class method of sale (mail, internet, phone, door 2 door) financial arrangement (cash, credit card, cheque) size of order (how much did they buy) commission class - did your agent take 5%, 10%

Chpt 19 Developing Innovative            Marketing Plans

.  Product Life Cycle guide Planning page 515 in text

Planning for Involvement in International Marketing                           Planning for Involvement in International Marketing                                     Planning for Involvement in International Marketing                           Planning for Involvement in International Marketing

Page 528 - 530 Planning for Involvement in Int'l Marketing Importing Exporting Licensing common for branded clothing products risks include production overuns by the licensee which would be sold on the black market which would erode the value of your brand often done when the license holder fears high risk associated with local manufacturing and prefers to simply take the money from selling licenses Franchising common in the convenience food and beverage products industry also used in industrial services" such as franchised "Real Estate" offices a good way to spread your brand without taking the risk of buying real estate and setting up foreign operations Contract Manufacturing common in the clothing, telecom, computer and auto parts industries a good way to keep your investment in capital and labour to a minimum allows for flexibility when you need to temporarily increase output risk to the contractor you may be continually squeezed to produce at a cheaper and cheaper price if the contractee is facing competition when they sell the product in a tough market contractee there are risks when the contract manufacturer does not produce to a quality level which meets the customer expectations, or when their are flaws in the production which could cause danger to users of the final assembled product Management Contracts based on the premise that success in business is due to successful people often used for highly specialized skills such as managing an oil refinery, or a computer hardware manufacturing facility Turnkey Operations contracts for construction of another company's facilities called "turnkey" because all the person has to do is arrive, and turn the key in the door and everything is ready to go sometimes the contract is just for real estate, erecting the building, and installing the machinery - other times it also includes hiring the local personnel as well Joint Ventures Co-operative Joint Ventures quite common with large sized companies seeking positions in emerging markets the relationship does not include financial sharing of ownership in a 3rd entity Equity Joint Ventures the partners share ownership of a jointly held subsidiary often used when it is expected that by holding a subsidiary, the partners can achieve a profit beyond what they could have done seperately . The difference between joint ventures  and consortiums is that in a joint venture, the partners will create a legal corporate entity to carry out the activity - with an agreement that the parent companies have controlling interests .Alliances Strategic Alliances - a relationship not involving ownership usually involving two or more companies that have resources and access to markets which could not be obtained by the alliance members on their own also done when the size of the project is beyond the scope of even large companies Equity Alliances - a relationship when the partners take joint ownership of a subsidiary a relationship in which one or more of the partners takes an ownership position in the other company this was very common among Japanese companies in the 1980's in order to secure strong motive for making the relationship succeed Consortiums  some texts describe consortiums as simply a term for 3 or more in a joint venture. This is definition is slightly incorrect. A consortium is usually an arrangement where companies come together for a project without taking ownership or sharing ownership in any subsidiary created entity consortiums are sometimes done by competitor companies for  research on a very expensive situation ; eg. the DVD consortium construction of a large scale engineering project . The difference between alliances and consortiums is that consortiums are usually created for a specific short term project, whereas alliances can take place over many years and involve multiple aspects of the relationship whereas consortiums usually are arranged for one specific topic or project. .

Online Quiz questions you can try for Chpt 20 - they are multiple choice http://highered.mcgraw-hill.com/sites/0070887292/student_view0/chapter20/quiz_questions.html

The publisher for the textbook has a detailed website for the text - on this site is material for each chapter, including powerpoints and quizzes + glossary of terms It is easy to go through this online, so I recommend you take advantage of this resource This screen capture is a link to the Key Terms used in Chpt 20

Chpt 20 Benchmarking p. 636 10th Edition

This is an image of a work bench "Bench marking" is an old term that comes from the time when people would take a competitors product, put it up on their work bench, look at, see how it works and maybe take it apart - all for the purpose of comparing that product to their own product.   The term also can be applied to, literally, marking the bench to see how you measure distance, size, etc. see also  http://www.benchmarking.gov.uk/about_bench/whatisit.asp  "There are numerous definitions of benchmarking, but essentially it involves learning, sharing information and adopting best practices to bring about step changes in performance. So, at its simplest, benchmarking means:"     "Improving ourselves by learning from others".

   o regularly comparing aspects of performance (functions or processes) with best practitioners;
   o identifying gaps in performance;
   o seeking fresh approaches to bring about improvements in performance;
   o following through with implementing improvements; and
   o following up by monitoring progress and reviewing the benefits.
 

Chpt 20

.  Marketing Managers are responsible for PDOC - or, "stuff bosses do to run things"  Planning Directing Organizing Controlling The Marketing Management Process was first introduced on p. 30    Planning figuring out what the company has to do to achive the goals and knowing how to match the company resource to you can do the things you need planning usually done by presidents and sr. vice presidents  Directing basically, bossing people around so they do the right thing Organizing  (organizing is not mentioned in the text but it is commonly considered among marketing courses as one of the functions of marketing management) Controlling checking to see if things done right, and, if not, give commands to control things Controlling provides feedback to improve plans and implementation p. 548

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Chpt 20 Sales Analysis p. 637 10th Edition

Controlling Control method # 1: Sales Analysis A "sales analysis" is a detailed breakdown of a company’s sales records  Step 1: Specify the Data to be Captured Step 2: Identify the Analyses to be done   Sometimes you can obtain information on marketing terms by looking at the websites of industry associations, like the AMA - American Marketing Association The AMA  www.marketingpower.com says "sales analysis" is a procedure involving the gathering, classifying, comparing, and studying of company sales data. It may simply involve the comparison of total company sales in two different time periods. Or it may entail subjecting thousands of component sales (or sales-related) figures to a variety of comparisons among themselves, with external data, and with like figures for earlier periods of time.

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Chpt 20 Performance Analysis p. 639 10th Edition

Controlling Control method # 2: Performance Analysis A "performance analysis" is a detailed breakdown of a company’s sales records  Performance Indexes p. 551 - 553 9th ed. "... a number that shows the relationship between two values" we use this in marketing so we can have some ways of measuring if situations have indeed kept up to our expectations

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Chpt 20 Cost Analysis

Controlling Control method # 3: Marketing Cost Analysis The website of the American Marketing Associations describes  Cost Analysis in a detailed way "cost analysis    - A sales management evaluation and control method for monitoring sales force performance. A cost analysis involves monitoring the costs of various selling functions across individual salespeople, districts, products, and customer types. When put together with the data from a sales analysis, this procedure allows a firm to judge the profitability of various products, customer types, and territories. "

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Chpt 20 Iceberg Principle

Iceberg Principle p. 555 9th edition p. 642 10th edition much good information is hide in summary data - total sales may be large for a company so problems may be hidden "below the surface" - closer analysis may reveal information that you need to know

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Virtual companies as a business model   . Virtual companies as a concept are not new, in fact they are very old - the only thing that is the use of the adjective "virtual" and the technology which facilitates communication among the corporate components. Virtual companies are essentially a special way that people provide capability to clients. Instead of having to possess all the capability that all your clients need all the time, virtual organizations consist of networks of affiliated people (specialists) and organizations which, depending on the project, will get together to provide a solution to a client which one of the people in the virtual network has. The reason this type of structure has become spoken off in the category of business models in the year 2000 is because it allows individuals and small sized organizations to bid on tasks that may be beyond the capability of the originating consultant - yet, can still be "handled" because the consultant has, through affiliations, friendships and alliances, a virtually larger capability which can be brought in to handle a larger situation. WTGR .

 

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Virtual companies as a business model . Virtual companies are not just contained to the IT business world but exist in many types of formats in business throughout the globe. One example of the diversity in applying virtual companies as a concept is the famous rap group Wu-Tang Clan.   . The reason for mentioning Wu-Tang Clan is to prove, by example, that business is not just the circumstances of widgets and auto parts,- business is very diverse and the entertainment industry is definitely big business - with all the commensurate business considerations, such as business models. WTGR . As TIME magazine noted, (Dec 11th issue, 2000) "The Wu-Tang "brand" blossomed in 1993. Each member of the group periodically goes off and does some solo project from which they develop additional capability and experience, at the same time keeping public their alliance and affiliation with Wu-Tang. The "brand", in the form of the bands members, continue to also put out products under the bands name as well in order to maintain the value of the "base" of their individual reps. The strength of the company, as explained in TIME, is "... maintaining just a small core and outsourcing everything else." Wu-Tang is a conglomeration of rappers that includes Robert Diggs AKA RZA his interview with TIME www.time.com/time/sampler/article/0,8599,88614,00.html  for those of you that don't know much about the "business" of rap and hip hop, this is a fascinating interview which exposes just how "business" oriented these people are to market share, branding building, product diversification etc. Diggs "my original strategy — to have artists placed in different locations, then get those different labels to work together for my brand" Michael Diggs AKA Divine his interview with TIME www.time.com/time/sampler/article/0,8599,88545,00.html  Method Man Masta Killa U-God Raekwon Inspectah Deck GZA Ghostface Killah ODB AKA Ol' Dirty Bastard Cappadonna

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Virtual companies as a business model The band members have so many sites devoted to their activities that Yahoo has devoted an entire Yahoo category to them  http://dir.yahoo.com/Entertainment/Music/Artists/By_Genre/ Rap_and_Hip_Hop/Wu_Tang_Clan/Band_Members/ "Everything else" is their forays into video games, clothing, comics, movies and many other constantly new and evolving merchandise crossing over and back into music, video, movies and the internet.   Wu-Tang website  - example of "product diversification" - they had a kung fu game at  www.activision.com/games/wutang/ but the link is no longer active .  Disclaimer: The author of this web page, [witiger]  does not necessarily advocate or subscribe to the lyrics, imagery or lifestyle associated with Wu-Tang Clan, [which some may find objectionable] or any other musical group noted herein. The purpose of noting this organization is strictly in the context of exploring the great diversity of business activity which is online, and reflects the diversity of business globally. The entertainment industry is often the particular area of business that adopts new technologies for creating "content" and sharing "content", yet many traditional business academics still choose to use examples from consumer product companies when discussing new ideas. The author of this website chooses to explain examples a bit differently !

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