CASE ANALYSIS FRAMEWORK Evaluating Opportunities using STP 4) Implement meet all legislation – i.e.
Implement meet all legislation – i.e. identify hazards, industry specific
1. Key Issues and Root Problem/Opportunity (Main
issues, symptoms, implications)
2. Analysis (Internal Analysis – currently financial
position, current marketing strategy, current marketing
mix, implications; External Analysis – environmental
trends including political, economic, technological,
sociocultural, market trends, opportunities and threats,
implications; Consumer Analysis – market
segmentation, consumer needs, behaviour, implications;
Competitive Analysis – strengths, weaknesses, strategy,
implications; Other – i.e. service business, international
marketing, entering new markets, ethical issues?)
3. Decision Criteria (Include Stakeholder Analysis here)
4. Alternatives (Must be rational, specific, implementable
– Note: must be mutually exclusive – do not have one
alternative that combines two others)
5. Evaluation of Alternatives Using Decision Criteria
(Can put summary in a chart in appendices – Ensure that
one of the decision criteria encompasses profitability,
revenue, or market share and conduct financial analysis
here)
6. Recommendation
7. Implementation (STP with positioning statement,
marketing mix components, and expected results)
8. Contingency Plan
FINANCIAL ANALYSIS
Calculations to Consider: break-even, break-even market
share, sensitivity analysis (consider changing sales, FC,
profit margin if applicable). Note: consider time value of
money!! Unit Contribution= price – VC. Net
Contribution= [(price – VC)*Volume] – FC. Net Profit=
net contribution – FC. Break-even Volume= FC/unit
contribution. Break-even Market Share=
FC/contribution %. Target Profitability Break-even=
(FC + Target Profit)/unit contribution. ROI= (gain from
investment – cost of investment)/cost of investment.. Note
margins – i.e. if retail price is $40 and retail margin is
45%, the manufacturer sells for $22.
CHAPTER 1 – OVERVIEW OF MARKETING
Customer Relationship Management (CRM) –
strategies, programs, and systems that focuses on building
Revenues
Sales $5,520,000
Less: Cost of Goods Sold $2,870,400
Gross Margin $2,649,600
Expenses
Annual rental $700,000
General and Admin $80,200
Research and Development $20,650
Miscellaneous $12,350
Distribution $426,000
Salaries (willing to forgo in first year) $200,000
Marketing $555,000
Sales force salaries (20 @ $25,000) $500,000
TOTAL EXPENSES $2,494,200
Net Profit $155,400
loyalty among firm’s most valued customers –collect
information about customers’ needs and use to target
customers with products, services, promotions.
CHAPTER 2 – DEVELOPING MARKETING
STRATEGIES
Strategic Marketing Planning Process
1) Defining the Mission and/or Vision (Mission – what
type of business are we and what do we need to do to
accomplish our goals and objectives?) 2) Conducting
Situation Analysis using SWOT 3) Identifying and
complex, more people, competitive bidding, professional
Marketing Mix and Allocate Resources (Pricing – cost
Relative Market Share
M arket G row th R ate
Stars Question
Marks
Cash Dogs
Cows
based, competitor based, value based; a popular tool for
allocating resources is the BCG matrix) 5) Evaluate
Performance and Make Adjustments
Growth Strategies
Market Penetration (existing customers and existing
marketing mix, encouraging customers to BUY MORE).
Market Development (existing marketing mix to reach
new segments). Product Development (new product to
firm’s current target market). Diversification (new
product to a segment currently not served).
Macro Strategies – operational excellence, customer
excellence, product excellence
CHAPTER 3 – ETHICS AND SOCIAL
RESPONSIBILITY
Marketers must realize societal issues: like pollution;
global issues like sweatshops; and consumer issues of
deceptive advertising, marketing dangerous products
Corporate Social Responsibility – voluntary actions
taken by a company to address the ethical, social, and
environmental impacts of its operations on stakeholders.
Framework for Ethical Decision Making
1) Identify Issues 2) Gather Information and Identify
Stakeholders 3) Brainstorm Alternatives 4) Choose a
Course of Action
Six Tests of Ethical Action
1) The Publicity Test 2) The Moral Mentor Test; what
would person I admire most do in this situation? 3) The
Admired Observer Test; would I want person I most
admire to see me doing this? 4) The Transparency Test;
would my honest explanation of my actions and motives
satisfy a stern morale judge? 5) The Person in the Mirror
Test; will I respect person I see in mirror? 6) The
Golden Rule Test
Consumerism – social movement aimed at protecting
consumers rights from business practices.
CHAPTER 4 – ANALYZING THE MARKETING
ENVIRONMENT
Immediate Environment – company’s capabilities,
competitors, and corporate partners
Macroenvironment – 1) Culture (must determine
whether firm culture can serve as a relevant identifier for
a particular group of people who would be interested in
purchasing the firm’s product) 2) Demographics
(characteristics of human populations and segments used
to assess market needs – including generational cohorts,
income, education, gender, and ethnicity) 3) Social
Trends (Greener Consumers demand enviro friendly
products, Privacy Concerns specifically regarding the
internet, Time-Poor Society in which people have little
leisure time and pay attention to nothing therefore it is
difficult to market today) 4) Technological Advances 5)
Economic Situation (monitor inflation, foreign currency
exchange fluctuations, and interest rates) 6)
Political/Regulatory Environment (must understand and
laws, fair practices)
Scenario Planning
Integrates macro environment’s impact on company,
competition, corporate partners, and how these
entities market to customers as a means to understand
the potential outcome of different applications of a
firm’s marketing mix.
1) Asses Strengths and Weaknesses 2) Assess
Opportunities and Threats 3) Identify Different
Scenarios 4) Apply the Marketing Mix to Different
Scenarios 5) Assess the Profitability of Each
Scenario
CHAPTER 5 – CONSUMER BEHAVIOUR
Types of Buying Behaviour
1. Complex – highly involved and perceive significant
differences between brands – when expensive, risky,
bought infrequently, self-expressive. 2. Dissonance
Reducing – consumer wants to buy an expensive,
infrequent, risky, self-expressive product for which there
are few perceived differences among brands – consumer
will buy based on price, delivery, convenience and want to
avoid post purchase dissonance. 3. Habitual – low
consumer involvement and little perceived brand
differences – little conscious effort – marketers try to build
strong brands to attract and maintain. 4. Variety-Seeking –
low customer involvement but significant differences
between brands – marketers of leading brands want to
dominate shelf space to get to habitual and challenger
brands should offer specials, samples, etc.
Consumer Buying Process
1) Need Recognition (functional vs. psychological)
2) Information Search (internal vs. external – extent
depends on benefits vs. costs, locus of control, risk, and
whether it’s a specialty, shopping, or convenience good)
3) Alternative Evaluation (consumers categorize
alternatives based on attribute sets – the universal set is
everything, retrieval set can be brought from memory and
evoked set which consumer would consider; they then
evaluate these alternatives using determinant attributes and
consumer decision rules)
4) Purchase
5) Post-purchase (3 possible positive outcomes here –
increased customer satisfaction, decreased post-purchase
dissonance, and increased customer loyalty) – undesirable
behaviour = passive and negative WOM
Factors Influencing Consumer Decision Process
1) Marketing Mix 2) Psychological Factors – motives
(using the hierarchy of needs – physiological, safety,
social, personal) – attitudes (cognitive, affective, and
behavioral components) – perception (selecting,
organizing and interpreting info) – and learning 3) Social
Factors – family, culture, reference groups 4) Situational
Factors – purchase situation – shopping situation (store
atmosphere, salespeople, crowding, demos, promotions,
packaging) – temporal state
CHAPTER 6 – B2B MARKETING
Process of buying and selling goods or services to be used
in the production of other goods and services, for
consumption by the buying organization, and/or for resale
by wholesalers and retailers.
Market Characteristics – derived demand, fewer
customers, larger orders, inelastic demand. Product
Characteristics – technical, raw materials, emphasis on
delivery time, after sale service and technical and financial
assistance. Buying Process Characteristics – more
buyers, long-term relationships, online auctions.
Marketing Mix Characteristics – direct selling, bulk
pricing, pricing includes future service
B2B Buying Process
1) Need Recognition 2) Product Specifications 3) RFP
Processing (request for proposals) 4) Proposal Analysis,
Vendor Negotiation, and Selection 5) Order Specification
6) Vendor Analysis
Factors Affecting Buying Process
Buying Centre – people responsible for buying decision
(initiator, influencer, decider, buyer, user, gatekeeper).
Buying Org Culture – autocratic, democratic,
consultative, consensus. Buying Situation – new buy,
straight rebuy, modified rebuy.
CHAPTER 7 – GLOBAL MARKETING
Assessing Global Markets
1) Economic Analysis – greater wealth of the country
generally better opportunity for the firm – assess the
general economic environment (trade deficit/surplus,
GDP, GNP, purchasing power parity, and human
development index), the market size and population
growth rate, and real income.
2) Infrastructure and Technological Analysis –
transportation systems, distribution networks,
communication systems, and commercial infrastructure.
3) Government Actions/Inactions – tariffs, quotas,
boycotts, exchange rate controls, and trade agreements.
4) Sociocultural Factors –power distance uncertainty
avoidance, individualism, masculinity, time orientation.
Choosing a Global Entry Strategy (determined by
willingness to accept risk) – Exporting (least risk),
Franchising, Strategic Alliance (collaborative rela between
independent firms), Joint Venture (pool resources with a
local firm to form a new company), and Direct Investment
(highest risk).
Choosing a Global Marketing Strategy
STP – consider cultural nuances, different positioning
Product/Service – sell same as at home, similar, or totally
new product
Pricing – may face government rules
Place – middlemen increase price
Promotion –what needs to be adapted (language, literacy
levels, media availability, advertising regulations)
** Consider ethical issues – environmental issues, global
labour issues, impact on host culture
CHAPTER 8 – STP
Segmentation Process
1) Establish overall strategy/objectives (consistent with
mission and current SWOT)
2) Profile segments based on: Geographic, Demographic,
Psychographic (how consumers describe themselves),
Benefit, Loyalty, Multiple segmentation methods (i.e.
geodemographic)
Targeting Process
1) Evaluate segment attractiveness (identifiable,
substantial, reachable, responsive, profitable)
**Note profitability = segment size – segment adoption
percentage – purchase behaviour (purchase price x number
times will buy / service during time period) – profit
margin percentage – FC
2) Select target market and segmentation strategy
(undifferentiated = never do this, differentiated,
concentrated, micromarketing/one-to-one)
Identify and Develop Positioning Strategy
Positioning strategy focuses on how product meets
consumer needs or how it’s better than competition. Firms
position products according to: value (relationship of price
to quality), product attributes (i.e. quality, performance,
and reliability), benefits and symbols (psychological
meaning of brand to consumers), and competition
(compete head to head).
Drawing a Perceptual Map
1) Determine consumers’ perceptions and evaluations of
product in relation to competitors’
2) Identify competitors’ positions
3) Determine consumer preferences
4) Select the position
5) Monitor the positioning strategy
**Repositioning? Hard to change perception in
consumers’ mind.
Positioning Statement
For (the target customer) who (statement of the need), the
(product name) is a (product category), that (statement of
key benefit). Unlike (primary competitive alternative), our
product (statement of primary differentiation.
CHAPTER 9 – MARKET RESEARCH
Marketing Research Process
1) Defining the Objectives and Research Needs
2) Design the Research Project (primary vs. secondary)
3) Data Collection Process
 Exploratory research provides initial info when
problem lacks clear definition– observation, in-depth
interviews, focus groups, projective techniques
 Conclusive research used by managers to determine
appropriate course of action – surveys, experiments,
scanner data, panel data
4) Analyzing Data
5) Presenting Results
CHAPTER 10 – PRODUCT, BRANDING,
PACKAGING
Changing Product Breadth (# of product lines):
Increase to capture new markets, compete in new venues.
Decrease to address changing market conditions (deleting
entire product line). Changing Product Depth (# of
categories within product lines): Increase to address
changing consumer preferences or preempt competitors
while boosting sales (added a cheaper alternative).
Decrease to realign resources on more profitable items.
Branding – use brand name, logo, symbols, characters,
slogans, jingles, and distinctive packaging. Why?
Facilitate purchase, establish loyalty, protect from
competition, reduce marketing costs, raise market value.
Brand Equity (value of a brand) – determined by brand
awareness, perceived value, brand associations/brand
personality, and brand loyalty.
Branding Strategies – manufactured/national brands (i.e.
Nike), private-label, and generic/unbranded.
Naming Brands – corporate/family name brand, product
line brand, or individual brand – brand name should be
descriptive and suggestive, easy to pronounce and
remember, able to trademark, and translatable.
Brand Extension  high quality perceptions carried over,
product category fit must be high, can boost overall sales
when used for complementary products. Brand Dilution
 adversely affects consumers’ perceptions about
attributes of core product.
Cobranding  marketing two or more brands together
(i.e. TD VISA) – enhances quality perceptions.
Brand Licensing and Rebranding
CHAPTER 11 – NEW PRODUCTS
First Movers – recognizable to consumers and establish Consider 5 Cs of Pricing – company objectives,
early market lead BUT Imitators capitalize on weaknesses customers (elasticity), costs, competition (oligopoly,
of first movers. monopolistic competition, pure), and channel members.
Diffusion of Innovation Pricing Strategies – cost-based, competitor-based (i.e.
premium), value-based.
Psych Factors Affecting Value-Based Pricing –
consumer use of reference prices (internal and external),
everyday low pricing vs. high/low pricing, odd prices,
price-quality relationship.
New Product Pricing – skimming (ground breaking
product, no competitors) vs. penetration (build sales,
market share but may signal low quality)
Innovators – knowledgeable, WOM to bring in next B2B Pricing Tactics – seasonal discounts, cash discounts
Early Adopters – opinion leaders who spread word (3/10 n30), allowances, quantity discounts, geo pricing
Early Majority – product is now profitable, wait until bugs based on delivery area.
worked out Consumer Pricing Tactics – pricing lining (make floor
Late Majority – sales tend to level off here and ceiling and choose diff price points to convey
Laggards – wait until old version no longer available quality), price bundling, leader pricing, markdowns,
Speed of Diffusion depends on – relative advantage, quantity discounts, seasonal discounts, coupons/rebates.
compatibility with people’s lives, observability, Unethical/Illegal Pricing Tactics – deceptive
complexity, and trialability. advertising, deceptive reference prices, loss leader
How Firms Develop New Products pricing, bait and switch, predatory pricing, price
1) Idea Generation (internal R&D, collaboration, discrimination, price fixing.
licensing, brainstorming, reverse engineering of CHAPTER 14 – DISTRIBUTION STRATEGY
competition, consumer input from lead users) Distribution Channel Structure – direct, indirect (one
2) Concept Testing (determine if worth making) or more intermediaries), and multichannel (direct and
3) Product Development (prototypes, alpha testing to see if indirect).
it performs as intended, beta testing with consumers to see Distribution Intensity – intensive (get products in as
what they think) many outlets as possible), exclusive (few retail
4) Market Testing (premarket tests and test marketing) customers for prestigious image and maintaining high
5) Product Launch – promotion, place, pricing, timing margins), and selective (used for shopping goods).
6) Evaluation of Results – measure success by Vertical Marketing System – members act as a unified
performance, customer acceptance, financials system to work together to create efficiencies – 3 kinds are
Product Life Cycle administered (no contracts – dominant member controls),
Introduction – innovators, initial losses, low sales contractual, and corporate (company owns supply chain).
Growth – demand and sales increase, competition comes, Managing Supply Chains through Strategic
early majority enters, product variations, profits increase Relationships – mutual trust, open communication,
from economies of scale common goals, and credible commitments.
Maturity – sales peak, late majority enters, intense JIT  reduced lead time, increase product availability,
competition, lower prices and profits, increased marketing, lower inventory investment; requires a strong commitment
must enter new markets or make new products to survive by the firm and its vendor to cooperate, share data, and
Decline – target niche market or exit, laggards enter develop systems like Electronic Data Interchange and
CHAPTER 12 – SERVICES Collaboration, Planning, Forecasting, and Replenishment
Services are more difficult to market because they are systems.
intangible (can’t show benefits directly), inseparable CHAPTER 15 – RETAILING, DM, and PS
(purchase risk because no trials or returns – counteract Value Retailers – those in the Big Middle – continue to
with warranties), variable (in service quality because improve their shopability by providing convenience and
humans provide it – reduce with training), and perishable ease in shopping experiences – they also focus more today
(difficult to match supply and demand). on providing more value to their best customers – location
Providing Great Service – The Gaps Model is most important.
1) Knowledge Gap – close gap of customer expectations Electronic Retailing – difficult to provide personalized
and firm’s belief of expectations by researching what they service, the instore shopping experience, product trial,
want. 2) Standards Gap – close gap by setting specific develop trust, instant gratification, maintain privacy, and
measurable goals based on customer expectations 3) involve high shipping costs.
Delivery Gap – close by getting employees to meet Types of Retailers – food, discount, category specialists,
standards by empowering them, providing incentives and department, drugstores, offprice retailers (i.e. Winners).
support, and using tech 4) Communication Gap – close Direct Marketing – it is targeted, motivates an action, is
gap by making realistic promises and managing customer measurable, and can provide database info – advantages
expectations are it is convenient, easy to use, cost effective, and can be
Service Dimensions for Quality – reliability, monitored easily – examples are catalogues, direct mail,
responsiveness, assurance by employees, empathy, direct response TV, and kiosks.
tangibles. Personal Selling – customize the message and direct it
Service Recovery – listen to customer, provide a fair towards consumers with the highest potential. – must build
solution, handle quickly. strong relationships (relationship selling). Value added by
CHAPTER 13 – PRICING personal selling  educating and providing advice, saving
customer time, making things easier.
The Personal Selling Process
1) Generate and Qualify Leads (tradeshows, internet, cold
calls) 2) Pre-approach (plan to meet client and set goals)
3) Sales Presentation and Overcoming Reservations 4)
Closing the Sale 5) Follow-Up (reliability,
responsiveness, tangibles, assurance, empathy).
Salesperson Responsibilities – order getting, order
taking, and sales support
CHAPTER 16 – IMC
IMC seeks to communicate the value proposition to the
target market.
The Communication Process
Senders must adjust messages according to the medium
and receiver traits.
The Aida Model
Elements of IMC – Advertising (newspapers, TV,
effective for creating awareness/interest), Personal
Selling (expensive – fact to face, phone, internet,
videoconferencing, ), Sales Promotion (encourage
purchase of a product—store promotions, coupons,
rebates, POP—build ST sales and used in conjunction
w/other advertising), Direct Marketing (allows for
personalization of the message), PR (image building – i.e.
cause related marketing, event sponsorship), E-Media,
Viral Marketing (consumers pass on message).
Creating an IMC Budget – objective and task method,
rule of thumb methods (competitive parity, percentage of
sales, affordable budgeting)
Measuring IMC Success –frequency (how often is target
market exposed) and reach (% of target exposed) – Gross
Rating Points (GRPs) = frequency x reach
CHAPTER 17 – ADVERTISING AND SALES
PROMOTION
Steps in Planning an IMC Campaign
1) Identify Target Audience 2) Set Advertising
Objectives – push onto consumers vs. pull into supply
chain – informative vs. persuasive vs. reminder – focus
depends on buyer readiness stages (awareness, knowledge,
liking, preference, commitment, buy) 3) Determine the
Budget 4) Convey the Message – the reason to respond =
the unique selling proposition.. The appeal—rational vs.
emotional. 5) Evaluate and Select Media – mass media
vs. niche media (used to reach narrower segments of
people with unique demographic characteristics) – choose
a continuous or flighting advertising schedule. 6) Create
Advertisements – maintain consistency 7) Assess
Impact – pre-testing, tracking, post-testing
Sales Promotion – Special incentives that encourage
consumers to purchase a particular product, used in
conjunction with other advertising.
Consumer Sales Promotions: coupons, deals (encourage
trial but reduce perceptions of value), premiums (BOGO
free, increases perception of value, only effective if
consistent with brand’s message and image and highly
desirable to target market), contests, sweepstakes (to
minimize brand switching), samples (costly but effective),
loyalty programs, POP displays, rebates, product
placement.
Trade Channel Sales Promotions: convince retailers to
stock a new brand, give it eye level shelf space, and
promote it in their ads – discounts and allowances, sales
force training, co-operative advertising (share
advertising costs with trade channel member to encourage
them to promote your products more).