LEC#5

MT631
LECTURE # 5
OUTLINE

Complete the review of the Strategic Marketing Process

Normative Marketing Strategies

Product Strategies
- Product line strategies (Full vs. Limited)
- Strategies over the PLC
- Differentiation strategies (Spec vs. Postponed (Custom))
- Vendor strategies within Business-to-Business markets
Distribution Strategies
- Exclusive, Selective and Intensive coverage
- Integrative strategies (Vertical and Horizontal Market Systems)
- Merchandising strategies (Inventory turnovers and markups)
- Locational strategies
  - Trade migration
  - Arterial flows
  - Symbiotic relationships
  - Clutching
  - The allusion of discovery
Promotional Strategies
- Push vs. pull
Pricing Strategies
- Skim vs. Penetration
- Psychological pricing
  - Reference pricing
  - Odd/even pricing
  - Prestige pricing

Implementation

Programming the 4 P's
- Product/Promotion Matrix
- Product/Service Interaction Matrix

Control

Continous feedback on objective measures provides indications of how program
performance is progressing.

The Marketing Plan

The Decision Making Process and "DECIDE"

Problem Recognition

Proposition: The best solution to a problem that is incorrectly defined is not as
good as a mediocre solution to a correctly defined problem.
Pogo sez "Problems represent tremendous opportunities that are cleverly
disguised as insoluble problems"
An illusive task
- By the time a problem is noticed it may be too late
- Myopic focus on outcome measures
- Symptoms rather than causes
- Rigidity of thought
- Context free thinking

Establish Evaluative Criteria

List and Evaluate Alternatives

Choose and Implement Solution

In-class Case Analysis

**Potential Items for Consideration/Coverage in a Case Analysis**
Background Analysis Product/Service Characteristics - PLC ... by attributes, by benefits sought ... classification of good ... Industry/Market Structure - concentration of power ... ease of access ... barriers to access ... domestic/global ... Critical Success Factors - pratonage motives ... time in market ... distributional advantage ... patents ... Other Unique Considerations - pecularities of the product, the market, usage ... Summary of Current Events Evidence of Mission - by past behavior or corporate statement ... SWOT Analysis - strengths, weaknesses, opportunities, threats ... Competitive Advantage - cost leadership ... differentiation ... Problem Statement Critical Assumptions - stated (up front) justifiable beliefs or interpretations ... Major Problem - causes not symptoms ... Sub-problems - extensions ... confounds ... Description of Alternative Courses of Action Viability of Status Quo - what is at risk ... extrapolation of exisiting programs ... Alternatives' Outcomes - payoffs, costs, opportunity losses ... Justification of Ranges / Limits of Alternatives - bounds on solutions ... sensitivity of solution to change ... Solution and Implementations Expected Outcomes - EMV, EOL, EVPI ... or similar measures when appropriate ... Choice and Rationale - take a position and defend it ... Implementation Time Table - who, how, why and WHEN ... Limitations and Risks Disclaimers - reasonable declarations ...

**Case Discussion Questions**
Importadores Quetzal 1a. How would you describe IQ's product lines? Historically? Currently? 1b. Within these lines of business, what are the "critical success factors"? 1c. Within these lines of business, what are IQ's specific core competencies? 2a. Describe the ultimate target markets for each of the product/segments currently served by IQ. Demographically Life style 2b. What are the purchase motives for each of these target groups? 3. What is IQ's most significant competitive strength and how does this attribute manifest itself as a source of competitive advantage? 4. Discuss the potential channel strategies/structures that are appropriate for each of IQ's target groups. Push/pull Exclusive, selective or intensive? What is the relationship with existing distributors? Who is the Captain? How would you view the practice of independent buying by some of IQ's larger distributor accounts? 5a. What do the think would be IQ's historic Statement of Mission? 5b. Is this mission changing? 6. Write a Business Definition for IQ. 7. Recap the recent environmental changes that have significantly affected IQ. How do these events help in defining the basic product categories for the two markets currently served by IQ? Impact of recessions and inflation Are these trends or temporary fads? 8. Describe IQ's historic and current positions on the supply side and speculate about the long term competitive prospects. 9. Discuss the specifics of the current contract proposal. Impact of accepting the offer on the definition of the business Potential for profitability 10. Under what conditions should IQ accept the contract. 11. What is the Problem Definition? Immediately? longer term? 12. What are your recommendations for each of these problems and what is your supporting argument?

Case Discussion Questions

			    Importadores Quetzal

 1a. How would you describe IQ's product lines?
	Historically?
	Currently?
 
1b. Within these lines of business, what are the "critical success factors"?

1c. Within these lines of business, what are IQ's specific core competencies?

2a. Describe the ultimate target markets for each of the product/segments 
currently served by IQ.
	Demographically
	Life style

2b. What are the purchase motives for each of these target groups?

3. What is IQ's most significant competitive strength and how does this 
attribute manifest itself as a source of competitive advantage?

4. Discuss the potential channel strategies/structures that are appropriate 
for each of IQ's target groups.
	Push/pull    Exclusive, selective or intensive?
	What is the relationship with existing distributors? 
        Who is the Captain?
		How would you view the practice of independent 
		buying by some of IQ's 	larger distributor accounts?

5a. What do the think would be IQ's historic Statement of Mission?

5b. Is this mission changing?
 
6. Write a Business Definition for IQ.

7. Recap the recent environmental changes that have significantly affected IQ.
	How do these events help in defining the basic product categories 
        for the two markets currently served by IQ?
		Impact of recessions and inflation
	Are these trends or temporary fads?

8. Describe IQ's historic and current positions on the supply side and 
speculate about the long term competitive prospects.

9. Discuss the specifics of the current contract proposal.
	Impact of accepting the offer on the definition of the business
	Potential for profitability

10. Under what conditions should IQ accept the contract.

11. What is the Problem Definition?
	Immediately?
	longer term?

12. What are your recommendations for each of these problems and what is your 
supporting argument?

The listings above are to provide structural assistance to your study.
They are not attended to be inclusive of every item/topic that was presented
in the lecture period.

MT631 LECTURE # 5 OUTLINE

MT631
LECTURE # 5
OUTLINE