Marketing Management The marketing Process

1. Marketing ManagementThe marketing Process Ron Padavich Director Strategic Marketing Services / University of Northern Iowa

2. Marketing Management What is Marketing Management?

3. What Is Marketing Management? The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services that satisfy individual and organizational objectives. It is the entire organization and a product or service from conception to the end of its useful life!

4. What is Marketing? The process of creating customers for your product/service.

5. How Do You Increase Market Size? • Sell more to current customers • Sell new products/services to current customers • Find new customers for current offerings • Offer new products/services to new customers

6. Today’s Discussion • Marketing Management at SMS • Strategic Planning • Market Research • New Technology – Eye Tracking

7. Marketing Management of SMSThe marketing Process Ron Padavich Director Strategic Marketing Services / University of Northern Iowa

8. Who We Are • Self-supporting, Fee-based University enterprise • Started in 1990 • Five professional market researchers

9. What We Do • Market Research • Marketing Strategies • Strategic Planning

10. Who We Serve • For Profit Businesses • Entrepreneurs Fortune 500 Companies • Non-profit Organizations • Government Agencies • Economic Development Corporations

11. Strategic Marketing Services Over 300 clients in diverse markets • Alliant Energy • Avery-Dennison • American Tool • Bausch & Lomb • Cargill • Century 21 • CNS-BreatheRight® • Wheaton Franciscan Healthcare • Cummins/Onan • Ecolab • John Deere • Johnson & Johnson • Kimball International • Lincoln Savings Bank • Maytag Appliances • Mercury Marine • Nissan Industrial • Riverside Publishing • Siemens Industries • The Nature Conservancy • Yellow Freight

12. Our Team • Director – Over 20 Years • Senior Program Manager – Over 20 years • Program Managers (3) – 2, 14 & 15 years • Students

13. Core Competencies • Market Characterization, Segmentation & Positioning • New Product/Service Development • Customer Satisfaction/Loyalty • Competitive Intelligence • Strategic Opportunity Assessments (Market penetration, market development, product development, diversification) • Strategic Planning

14. Methodologies • Surveys (Phone, Online, Mail) • Research Panels • Facilitated Planning Sessions/Discussion Groups • Focus Groups (Online or In-person) • In-depth Interviews • Eye Tracking Technology

15. Types of Projects • Attitudinal • Brand Awareness • Voice of the Customer • Concept Testing • Product Configuration • Competitive Intelligence • Pricing • Prototype Evaluations • Go-To-Market Advertising/Communications • Insight Generation, Ideation, Workshop Facilitation • Technology Adoption • Channel Evaluation • Strategic Thinking

16. SMS MarketingHow We Manage the Process

17. What Makes Us Different • Small Boutique Firm • Motivated by quality over quantity • Performance over profit • Full client pipeline – Pick and Choose • Access to UNI Intellectual Capital • Higher Response Rates – University Affiliation • University Credibility • Student Opportunities • Access to Incentive Funds • Qualify for Grants (Iowa Energy Center, Power Fund, etc.)

18. Our Challenges • Small – Fill up fast • University Tie Perceptions • Free • Student Program • Competition • Name Brand Firms • Global Players • Low Price Providers • Client Personnel Changes • Long Sales Cycle

19. Pricing Strategies • Clients Outside Iowa: Cost + • Iowa Clients: Cost + Minus Incentive • Iowa Grants: Cost • Federal Grants: Cost and allowed overhead

20. Marketing/Sales Strategy Past: Out-Bound - Sales • Cold Phone Calls • Sales Trips • General Trade Shows • Advertising-Publications • Referrals • Trade Listings • Internet Non-existent Present: In-Bound - Marketing • Warm Phone Calls • No Sales Trips • Select Trade Shows • No Advertising • Referrals • Trade Listings • Internet Mktg. - HubSpot

21. SMS Marketing Sales Strategy

22. Typical MR Sales Process • Awareness- It exists • Education – What can it do? • Benefits • Convince of the need • Budget – Do they have one? • Get them to agree to spend the money • Keep them focused

23. SMS Primary Target Market • Large U.S. companies who do market research on a regular basis, do so because they: • Understand it • Value it • Know what to expect • Know what it costs

24. SMS Secondary Market • Iowa Companies (Required) • Hard Sell • No MR experience • Don’t want to spend money • Prefer trial and error • Difficult to get them from awareness stage to project • Incentives have limited impact • SMS spends lots of time for small return

25. SMS Third Market • Grants • Seldom desired • Time investment to respond to RFP • Competing against other non-profits • Not profitable – pay low, expect a lot • Long time-frame • RFP does not reflect total expectations • Reporting requirements • Difficult to break even

26. Things We Watch For • Unsolicited RFPs/Inquiries • Price Shoppers • Window Shoppers- DIY • Keeping other supplier honest

27. Qualifying the Prospect • How did you find out about us? • Why did you choose to call us? • Have you done market research before? • How often, with who, and why not using them now? • Do you have a budget allocated for the project?

28. SMS Summary

29. SMS Mission Statement SMS is a boutique market research firm that employs a small staff of highly skilled, dedicated researchers who expertly serves the needs of a select group of forward looking clients. We value quality over quantity. For us, nothing is more invigorating than seeing our clients use the market intelligence we provide in successful ways.

30. Our Approach • What is the client trying to achieve? • What information do they need? • Who has the information? • What is the best methodology to get the information?

31. Marketing

32. Marketing The primary purpose of a business is to sell a product or service! All types and sizes of businesses share one thing in common – the need to secure ready, willing and able customers!

33. Marketing Vs. Selling • Marketing – Focuses on the buyer. What needs do you have and how can I help you? • Selling – Focuses on the seller. I have a product you need to buy.

34. My Experience • Most companies are reactionary. • They do not manage marketing well. • They do not take action until sales decline and cause significant pain. • They prefer to do business as usual. • They fail when they do not understand the changing market, customer expectations, and the need to provide competitive value.

35. What is Needed? • Comprehensive Strategic Plan Where are you going, how will you get there, when will you arrive? • Market Research Why will people buy what you have to sell? • Marketing Strategy How will you tell people about what you have to offer and convince them to buy?

36. Strategic Planning

37. What Is Strategic Planning? • Strategic Planning Is A Systematic Way to Manage Change and Create the Best Possible Future • Optimizes potential • Takes all the pieces of the organization and puts them in one common direction. • Focuses resources to support desired results • Identifies and commits the resources necessary to succeed. • People, money, equipment, etc.

38. Strategic Planning Process • Addresses the following: • Who you are • What you do • Who you serve • Where you want to go • When you want to arrive

39. Strategic Vs. Tactical • Strategic – Long-term, process oriented • Tactical – Short-term, day-to-day

40. Strategic Plan • Considers: • Customers • Competitors • Investors • Employees • Internal & External Environments • Regulations • Operations • Markets

41. Strategic Plan - Vision • Vision Statement • Long-term view • A verbal picture of the future • Should be realistic and achievable “If you can imagine it you can achieve it”

42. Sample - Vision Statements • Anheuser-Busch “ Be the world’s beer company” • Avon “Be the company that best understands and satisfies the product, service and self-fulfillment needs of women –globally”

43. Mission Statement • What you are about: • Corporate Commitment • Employees • Customers • Vendors • Community • Environment • Technology How you run your business on a day-to-day basis

44. Sample - Mission Statement • Bristol-Myers Squibb “To discover, develop, and deliver innovative medicines that help patients prevail over serious diseases.”

45. 1st Step - Where We Are Today • Finances • Profitability • Customer Assessment • Competition • Technology Assessment • Supplier Issues • Employee Issues • Production Issues • Regulations • Economy

46. 2nd Step- SWOT Analysis • Strengths (Competitive advantage) • Weaknesses • Opportunities • Threats

47. Goals • Define the day-to-day focus of the business: • Sales & Profitability • Motivated employees • Satisfied customers & suppliers • Efficiency • Quality • Innovation • Production These are the things that make the business operate

48. Objectives • Support Goals • Specific • Measurable • Achievable • Results oriented • Time specific

49. Action Plans • Actions that achieve objectives and ultimately goals • Specific logical sequence of steps that will be taken • Assigned responsibility • Date for completion • Resources Allocated

50. Results of Strategic Planning • Strategic Alignment • Control destiny • Forecast problems and solutions • Better understand all aspects of your business • Make better decisions • Align resources