HUMBOLDT-UNIVERSITÄT ZU BERLIN INSTITUT FÜR INFORMATIK

1. TECHNISCHE UNIVERSITÄT BERLIN INSTITUT FÜR INFORMATIK HUMBOLDT-UNIVERSITÄT ZU BERLIN INSTITUT FÜR INFORMATIK TECHNICAL ENTREPRENEURSHIP Vorlesung 3 THE MARKETING Wintersemester 1999 Leitung: Prof. Dr. Miroslaw Malek Betreuer: Peter K. Ibach www.informatik.hu-berlin.de/~rok/entrepreneurship TE - III - M - 0

2. THE MARKETING • The Marketing Concept • Customer and Marketing Orientation • Market Opportunity Analysis (MOA) • Sources of Information for MOA • Consumer Profiles • Marketing Implications of Product Characteristics • Profile of Competitors • Marketing Mix Variables • Marketing Channels • Promotion Mix Tools • Promotion Tools Strengths and Weaknesses • Advantages and Disadvantages of Major Advertising Media TE - III - M - 1

3. THE MARKETING CONCEPT Customer Orientation Customer Needs & Wants Organizational Integration Success Goal Achievement TE - III - M - 2

4. INDICATORS OF CUSTOMER AND MARKETING ORIENTATION 1) What information do you carefully collect about the exact needs of your customer ? 2) Could you consider custom designing your services or products for smaller groups of customers ? How ? 3) Are your (nonsales) employees specifically trained to represent your company to customers ? How ? 4) Are customers contacted after the sale to determine their level of satisfaction ? How ? TE - III - M - 3

5. INDICATORS OF CUSTOMER AND MARKETING ORIENTATION (continued) 5) How do you convert unsatisfied customers to satisfied customers ? Do you have any strategy? 6) Is your top marketer in the company a top-level, equal team member ? 7) To what extent do you build your strategies around an in-depth understanding of your customers ? 8) To what extent are activities of different people (or departments) coordinated to ensure customer satisfaction ? TE - III - M - 4

6. MARKETING MANAGEMENT AND ENTREPRENEURSHIP Risk taking Organizational Creativity mission Venture idea Market identification, opportunity Creating value analysis innovation, and exploiting opportunity Business plan development Environmental scanning Marketing strategy Assembling/ Target Marketing integrating market objectives resources Marketing program Team building Managing growth Implementation/control TE - III - M - 5

7. THE FIVE STEPS TO ANALYZING MARKET OPPORTUNITY • 1. Identify the business environmental forces. • Economic conditions and trends • Legal and regulatory situations and trends • Technological positioning and trends (state of the art; related R&D) • Relevant social changes • Natural environment (shortages ? vulnerabilities ?) • 2. Describe the industry and its outlook. • Type of industry • Size -now and in 3-5 years • Types of marketing practices • Major trends • Implications for opportunity TE - III - M - 6

8. THE FIVE STEPS TO ANALYZING MARKET OPPORTUNITY (continued) • 3. Analyze the key competitors • Product description • Market positioning (relative strength and weaknesses, as seen by customers) • Market practices: channels, pricing, promotion, service • Estimated market share (if relevant) • Reactions to competition • Implications for opportunity TE - III - M - 7

9. THE FIVE STEPS TO ANALYZING MARKET OPPORTUNITY (continued) • 4. Create a target market profile. • Levels: generic needs, product type, specific brands • End-user focus; also channel members • Targeted customer profiles • Who are my potential customers ? • What are they like as consumers/businesspeople • How do they decide to buy / not buy ? • Importance of different product attributes ? • What outside influences affect buying decisions? • Implications for opportunity ? • 5. Set sales projections • As many formal or intuitive approaches as possible • Comparison of results • Go/ no go TE - III - M - 8

10. SOURCES OF INFORMATION FOR MARKET OPPORTUNITY ANALYSIS (MOAS) • Published Sources • Periodicals and newspapers • Trade association reports • Standardized information service reports • Government documents • Company reports • Personal observation • Of customers • Of competitors • Of macroenvironmental influences TE - III - M - 9

11. SOURCES OF INFORMATION FOR MARKET OPPORTUNITY ANALYSIS (MOAS) (continued) • Interviews with experts • Managersofsuppliers • Managers of trade companies • Managers of trade associations • Consultants • Salespersons • Primary marketing research • Cross-sectional surveys • Longitudinal panels • Experiments TE - III - M - 10

12. 34% eventual adopters 34% Proportion of 13 1/2% 2 1/2% Early Late 16% majority majority Early adopters Innovators Laggards Time to adoption decision TYPES OF ADOPTERS BY ADOPTION TIME REQUIRED TE - III - M - 11

13. COMPARATIVE PROFILES OF THE CONSUMER INNOVATOR AND THE LATER ADOPTER TE - III - M - 12

14. COMPARATIVE PROFILES OF THE CONSUMER INNOVATOR AND THE LATER ADOPTER (contin.) TE - III - M - 13

15. MARKETING IMPLICATIONS OF IMPORTANT PRODUCT VENTURE CHARACTERISTICS TE - III - M - 14

16. MARKETING IMPLICATIONS OF IMPORTANT PRODUCT VENTURE CHARACTERISTICS (contin.) TE - III - M - 15

17. Factors influencing the marketing strategy of key competitors Profile of Competitors • Mission and business objectives • Market position and sales trends • Management capabilities and limitations • Target market strategies • Marketing objectives • Marketing strategies and tactics TE - III - M - 16

18. MARKETING MIX VARIABLES TE - III - M - 17

19. CUSTOMER PERCEPTION HIERARCHY TE - III - M - 18

20. NEW PRODUCT DEVELOPMENT PROCESS Business Strategy Product/service development Idea generation Idea screening and evaluation Product/service testing Business analysis Market entry TE - III - M - 19

21. ALTERNATIVE MARKETING CHANNELS TE - III - M - 20

22. Design stages Decision criteria Identification Intensity of distribution of channel Access to end-user alternatives Prevailing distribution practices Necessary activities and functions Revenue-cost analysis Evaluation and Time horizon for development selection of Control considerations channel(s) to Legal constraints be used Channel availability Market coverage Selection Capability of channel Intermediary’s needs participants Functions provided Availability Channel design decisions and decision criteria TE - III - M - 21

23. PROMOTION MIX TOOLS Advertising Personal selling Print ads In-person sales Broadcast ads presentations Billboard ads Telemarketing Packaging logos and information The promotion mix Sales promotion Publicity Print media Games, contests Free samples news stories Trade shows Broadcast media news stories Couponing Trading stamps Annual reports Price promotion Speeches by Signs and displays employees TE - III - M - 22

24. Sales Personal promotion Advertising Publicity selling Criteria Cost per Very Very Low Low Audience member low high Poor Very Confined to Good Moderate to good good target markets Deliver a Poor Poor to Very Poor Complicated message to good good good Low to Very Interchange None None moderate good with audiences Moderate Credibility Low Low High to high PROMOTION TOOL’S STRENGTHS AND WEAKNESSES TE - III - M - 23

25. ADVANTAGES AND DISADVANTAGES OF MAJOR ADVERTISING MEDIA TE - III - M - 24

26. ADVANTAGES AND DISADVANTAGES OF MAJOR ADVERTISING MEDIA (continued) TE - III - M - 25

27. CONDITIONS SUGGESTING PERSONAL SELLING AS A MAJOR ELEMENT OF THE MARKETING MIX TE - III - M - 26

28. CONDITIONS SUGGESTING PERSONAL SELLING AS A MAJOR ELEMENT OF THE MARKETING MIX (continued). TE - III - M - 27