Transcript Document
MGT 449 Quality Management & Productivity
WS2: Strategic Planning and the Customer
Joseph Lewis Aguirre
WS2: STRATEGIC PLANNING AND
CUSTOMER SATISFACTION
• Determine the relationship between an organization's
process improvement plan and its strategic plan.
• Express the importance of leadership in relation to
quality.
• Describe the strategic role of TQM in manufacturing,
service, government, and non-profit organizations.
• Provide examples of techniques and tools to measure
customer satisfaction.
WS2: STRATEGIC PLANNING
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Mission and vision
Goals and objectives
Identification of strengths, weaknesses,
opportunities, threats, and trends (SWOTT
analysis)
WS2: PROCESS IMPROVEMENT &
STRATEGIC PLAN
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–
–
Commitment
Competitive advantage
Quality system and organizational
structure
Order winners, qualifiers, and losers
WS2: LEADERSHIP AND QUALITY
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Participatory management
Employee empowerment
Coaches versus managers
Establishing a quality culture
Training and education
Hiring employee criteria
Skill-set match
Organizational-climate match
WS2: LEADERSHIP AND QUALITY CHANGE MANAGEMENT
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–
Restructuring and change
Leadership and change
WS2: CUSTOMER SATISFACTION
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Customer identification
Measurement of customer satisfaction
Customer communication
Customer retention
WS2: TQM ACROSS VARIOUS
INDUSTRIES
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Commonalities
Differences
Creating a New System
“It must be remembered that there is nothing
more difficult to plan, more doubtful of
success, more dangerous to manage, than the
creation of a new system. For the initiator has
the enmity of all who would profit by the
preservation of the old institutions and merely
lukewarm defenders in those who would gain
by the new ones.
— Niccolo Machiavelli
Strategy
"Never forget that only dead fish swim with the stream."
-- Malcolm Muggeridge
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Strategy
At the height of the dot-com bubble, Autodesk CEO
Carol Bartz found herself being left off the “Most
Influential Leader” lists she had routinely been
included on in the past. The Reason? Ignoring
the Internet and stubbornly sticking to her
knitting.
Last month, a prominent business weekly printed
such a list and Ms Bartz was once more on the
list. The Reason? Ignoring the Internet and
stubbornly sticking to her knitting.
Lee Gomes WSJ 04/04/2005
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EXPERT
ADVICE
EXPERT ADVICE
• "I think there is a world market for maybe
five computers" - Thomas Watson, IBM president,
1943.
• "Television won't last because people will
soon get tired of staring at a plywood box
every night" - producer Darryl Zanuck, TwentiethCentury Fox, 1946.
EXPERT ADVICE
EXPERT
ADVICE
• "There is no need for any individual to have
a computer in their home" - Ken Olson, president of
Digital Equipment Corp., 1977.
• "640k ought to be enough for anybody" Microsoft founder Bill Gates, 1981
Decision Making Preconditions
1. There must be an awareness of the
existence of a gap
2. There must be a perceived need to solve
the problem
3. There must be some way to measure the
size of the gap
4. The skills and resources needed to solve
the problem must be present or at least
easily obtainable
Decision Strategies
Optimization
Satisficing
Elimination by aspects –
eliminate all alternatives that fail
with respect to a particular aspect
Decision Strategies
Instrumentalism – muddling through
– compare alternative courses of action
to the current one
Mixed scanning – search for,
collection, processing, evaluating and
weighing of information. The
importance of the decision determines
the degree of scanning
Analytical Hierarchical Process
Values
Honesty
Customers
Employees
Safety
Competitors
Revenue
Profits
Alliances
New Products
New Markets
Ecology
Cutting Edge
Image
Fun
Growth
Family
Capital
Quality
Social Capital
Location
Hedonism
Risk
Collaboration
Centralization
Creativity
Other
ORGANIZATIONAL EFFECTIVENESS
ENVIRONMENT
CLIMATE
Other Teams
Enthusiasm
STRUCTURE
Competition
Reward
System
Accountability
GOALS
Reporting
Relationships
Values
Clarity
Collaboration
Mission
Philosophy
Culture
Commitment
Stress
Feedback
System
Flexibility
Marketplace
Decision
Making
Behavior
Norm
Involvement
Pressures
Trust
Competition
STRATEGIC ANALYSIS
• Porter's five forces model
– the five forces
• the bargaining power of suppliers
• the bargaining power of buyers
• the threat of potential new entrants
• the threat of substitutes
• the extent of competitive rivalry
Porter's Five Forces Model
PORTER’S FIVE FORCES MODEL
Potential
entrants
Threat of
new entrants
Bargaining power
of suppliers
Industry competitors Bargaining power
of buyers
Suppliers
Buyers
Rivalry among
existing firms
Threat of
substitutes
Substitute
products
Source: Michael E. Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors, (The Free Press, 1980)
PORTER’S FIVE FORCES MODEL
• Porter's five forces model
– the five forces
• the bargaining power of suppliers
• the bargaining power of buyers
• the threat of potential new entrants
• the threat of substitutes
• the extent of competitive rivalry
– factors affecting each of the forces
PORTER’S FIVE FORCES MODEL
• Porter's five forces model
– the five forces
• the bargaining power of suppliers
• the bargaining power of buyers
• the threat of potential new entrants
• the threat of substitutes
• the extent of competitive rivalry
– factors affecting each of the forces
– limitations of the five forces model
VALUE CHAIN ANALYSIS
– nature of value chain analysis
– primary activities
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•
•
•
•
inbound logistics
operations
outbound logistics
marketing and sales
service
– secondary activities
•
•
•
•
procurement
technological development
human resources management
firm infrastructure
VALUE CHAIN ANALYSIS
After-sales
service
Marketing
and sales
Outbound
logistics
Operations
Inbound
logistics
STRATEGIC CHOICE
• Environment or market-based strategy
– types
• cost leadership
• differentiation
• focus
– importance of establishing:• the basis of a firm's competitive advantages
• the nature of the target market
• Resource-based strategy
– exploiting core competencies
– defining & establishing core competencies
GROWTH STRATEGY
• Growth by internal expansion
– product differentiation
– vertical integration
– diversification
• Growth by external expansion: mergers and
takeovers
– horizontal mergers
– vertical mergers
– conglomerate mergers
ALTERNATIVES
GROWTH OF A FIRM
Internal expansion
External expansion
(1) Differentiation
(1) Horizontal integration
Horizontal expansion
(same product, increase
in market share)
Mergers of firms
producing the same
product
(2) Vertical integration
(2) Vertical integration
Different products, but
belonging to different
stages of same product
Mergers of firms producing
at different stages of same
process
(3) Conglomerate
(3) Conglomerate
Diversification introduction of totally
different products
Diversification - merger of
firms producing totally
unrelated products
Alternative growth strategy
GROWTH OF A FIRM
Internal expansion
External expansion
(1) Differentiation
(1) Horizontal integration
Horizontal expansion
(same product, increase
in market share)
Mergers of firms
producing the same
product
(2) Vertical integration
(2) Vertical integration
Different products, but
belonging to different
stages of same product
Mergers of firms producing
at different stages of same
process
(3) Conglomerate
(3) Conglomerate
Diversification introduction of totally
different products
Diversification - merger of
firms producing totally
unrelated products
GROWTH - ORGANIC
– financing internal growth
• borrowing
• share issue
• ploughing-back profit
• the takeover constraint
GROWTH - ORGANIC
– growth through vertical integration
• backward integration ('upstream' integration)
• forward integration ('downstream' integration)
– why vertically integrate?
• economies of scale
• reduced uncertainty
• monopoly power
– barriers to entry
– growth through diversification
• advantages
– when existing market is saturated
– spreads risks
GROWTH - M&A
• Growth through mergers and takeovers
– types of merger and takeover
• horizontal
• vertical
• conglomerate
– motives for mergers and takeovers
•
•
•
•
•
•
growth
economies of scale
monopoly power
increased market valuation
reduced uncertainty
other motives
– effects of mergers on consumers
GROWTH - FINANCING
• Sources of business finance
– internal sources
• ploughed-back profit
– external sources
• banks
– mainly short- and medium-term finance
• stock market
– longer-term finance
• problem of 'short-termism'
– international sources
GROWTH - FINANCING
• The role of the Stock Exchange
– primary market
– secondary market
– advantages
•
•
•
•
brings together savers & firms seeking finance
regulates firms and helps encourage confidence
facilitates mergers and takeovers
reduces transaction costs of investment finance
– disadvantages
• cost of getting listed
• possible short-termism and instability
GROWTH - FINANCING
• Is the stock market efficient?
– the efficient market hypothesis
• share prices reflect information about companies'
current and expected future performance
– implications of stock market efficiency
• benefit of speculation diminishes as efficiency
increases
• perfect efficiency and share prices following a
'random walk'
PROJECT SCOPE MANAGEMENT
Planning Models
PROJECT SCOPE MANAGEMENT
Planning Models
PROJECT SCOPE MANAGEMENT
Planning Models
PROJECT SCOPE MANAGEMENT
Planning Models
PROJECT SCOPE MANAGEMENT
Planning Models
competitive advantage in relation to cost or differentiation advantage
PROJECT SCOPE MANAGEMENT
Planning Models
PROJECT SCOPE MANAGEMENT
Planning Models
Window of
Opportunity when
Solution remains
Valid
Marketing Concept
Joseph Lewis Aguirre
The Marketing Concept
Customer
Satisfaction
Profits
Company
Effort
eBusiness Planning Framework
Environment
Competition
Objective
Technology
Customers
STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS,
TRENDS (SWOTT)
SEGMENTATION
PRODUCT
TARGETING
PRICE
PROMOTION
POSITIONING
PRICE
Strategy: Growth Matrix
PRODUCT
MARKET
PRESENT
FUTURE
PRESENT
Market
Penetration
Product
Develop.
FUTURE
Market
Develop.
Diversify.
Ansoff’s Product Market Matrix
The Vision Thing
“It’s all about VISION, because…
In the absence of Vision we default to
Organization...
In the absence of Organization we default to
Activity...
In the absence of Activity we default to
Meetings...
In the absence of Meetings we default to
reports…”
Visions that work
–Coke: “A coke within an arm’s length of
everyone on the planet”
–Intel: “It’s what’s inside that counts”
–Nike: “Just Do It!”
– Disney: “Can it wear ears?”
Framework for Market Opportunity
Leverage the Internet to Improve the
Consumer Car-Buying Process
Car Buyers Are Dissatisfied With Current
Retail Car-Buying Process
Shoppers Who Feel Intimidated by Sales
People and Look for More Efficient Way
Microsoft’s Software and Free Placement on
All Its Websites
How Big Is the Online Car-Buying Market?
Who Are CarPoint’s Main Competitors?
Make “Go / No-Go” Assessment
• MSN CarPoint identified an opportunity to leverage the
Internet to deliver customer value in the car industry
• The retail car-buying process was frustrating and
inefficient:
• Little information available to the consumer
• Bargaining with salesperson viewed as an hassle
• Long process overall
• MSN CarPoint selected two primary target
segments for its service:
• “The intimidated by the process”
• “The information seekers”
• MSN CarPoint could leverage Microsoft’s expertise
in software development, its brand name and its
multitude of online properties
• Competition was getting fierce with more and more
online car services entering the market…
• But the financial opportunity was large: 66% of
new car buyers were estimated to use online
services in 2000
• In 1996, the first version of CarPoint was shipped
• By 1998, CarPoint was driving $5 million in car
sales a day
SEGMENTATION OPTIONS
Segmentation Type
Description
Examples of Variables
Geographics
Divides market into geographical
units
Country, region, city
Demographics
Divides market on the basis of
demographic values
Age, gender, income,
education
Firmographics
Divides market on the basis of
company-specific variables
Number of employees,
company size
Behavioral
Occasion (Situational)
Divides market based on how
customers actually buy and use
the product
Divides market based on the
situation that leads to a product
need, purchase or use
Website loyalty, prior
purchases
Routine occasion, special
occasion, part of day
Psychographics
Divides market based on lifestyle
and/or personality
Personality (laid-back, type
A), lifestyle
Benefits
Divides market based on benefits
or qualities sought from the
product
Convenience, economy,
quality
SEGMENTATION OBJECTIVES
Customers must demonstrate needs, aspirations or behavioral patterns that are similar
within a segment and different across segments
– A distinction between a price-sensitive and a quality-seeking segment is meaningful,
since the two segments demonstrate distinguishable sets of needs
A company must be able to reach customers within each segment through effective and
targeted marketing programs
– A customer segment consisting of customers with blue eyes is not actionable, since
it is very hard to identify and reach only customers with blue eyes
Segments must be large and profitable enough to make the investment in serving them
worthwhile
– MyCFO.com is targeted toward high-net-worth individuals, helping them manage
their portfolios; even though the number of those individuals is small, the dollar
amount managed is sizeable, thus constituting a substantial segment
Key characteristics of the segments (e.g., size and spending patterns) must be easy to
measure
Meaningful
Actionable
Substantial
Measurable
Carli’s Strategy: HP Product Mix BC
a more balanced revenue mix
*All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates.
imaging & printing
41%
access
21%
services
18%
hp
services
19%
access
48%
imaging & printing
22%
compaq
enterprise
19%
total: $47 billion
enterprise
34%
total: $40 billion
access
33%
combined
services
19%
enterprise
26%
total: $87 billion
Post Carli’s : HP Beyond Ink Sales
a more balanced revenue mix
*All data based on estimated trailing four quarters. Source: SEC filings, press releases, and company estimates.
imaging & printing
41%
access
21%
services
18%
hp
services
19%
access
48%
imaging & printing
22%
compaq
enterprise
19%
total: $47 billion
enterprise
34%
total: $40 billion
access
33%
combined
services
19%
enterprise
26%
total: $87 billion
DIGITAL CAMERA SEGMENTATION
E-BOOKS SEGMENTATION
Purchase
Occasion
Self-Consumption
Business Education
Gift
Leisure
Leisure
Reader
Hobby or
Special Collection
Interest
Institutional
Business
Corporate Education
By
Request
39
College
Education
Hobby or Special
Interest
40+
In-Depth Topical
Insights and
Discussion
Reference and
Research Materials
Compendium
by Topic
39
Moderate
Education
Required
Reading
For Display
40+
39
Limited
Education
Entertainment
How-To
Information
40+
How-To
Information
Advice
and
Recommendations
POTENTIAL eBAY CUSTOMERS
Promotional
Behavior
User
Demographics
History of Responding to Promotions
Very High
High
Moderate
Limited
None
39
High
Income
40+
Active Deal-Makers with
Means
39
Active
Frugal
Collectors
Passive Collectors
Ease
Convenience
Moderate
Income
40+
Active Frugal Collectors
39
Limited
Income
Price-Sensitive
40+
Limited Accessibility or
Options
Elements of Customer Experience
1.
2.
3.
4.
5.
6.
7.
A certain level of functionality must exist in order for
a site to work; basic standards and expectations
must be met
Relates to the individual’s unique perception of the
encounter with the firm
More than just the economic transaction - the entire
customer encounter experience includes both process
and output measures of the shopping experience
Includes a customer’s response to multiple
variables, from the tactical layout of the store/site to
high-level interpretations of the meaning of the brand
To the extent that it is relevant, assessment of the
customer experience needs to incorporate all five
senses
Cognitive responses are thoughtful and evaluative in
nature; emotional responses tend to capture moods,
attitudes and feelings of the customer
Previous, separate experiences can affect a
consumer’s reaction to various stimuli during a
shopping experience
The Objective Element
The Perception Element
The Encounter Element
The Reactions-to-Stimuli Element
The Sensory Element
The Cognitive and Emotional Element
The Relative Element
Stages of Customer Experience
This Is What the Customer
Experiences
If a Firm Gets This Right …
Stage One: Functionality
Design and information
architecture
? Deep understanding of customer
behavior
? Platform independence
? Efficient transactions
Stage Two: Intimacy
? Warehousing and mining
? Tailoring of pages and offerings
? Overlay human interaction
? Integrated data
? Consistent performance over
time
? Constant innovation and
upgrading (incremental or
significant)
Stage Three: Evangelism ? Supports evangelists
? Acknowledgment of evangelists
?
Site is easy to use
? Quick downloads
? Intuitive navigation
? Site reliability
?
Personalization
? Increasing trust
? Repeated experiences of
exceptional value
? A sense of “being in the
know”
? Consistent experiences
? Significant benefits relative to
other offerings
? Desire to make messages to
the market
? Community benefits
?
Strategy Decision Areas
Place
Product
Promotion
Price
• Objectives
• Channels
• Logistics
• Physical
Goods
• Service
• Features
• Quality
• Accessories
• Installation
• Warranty
• Product Lines
• Packaging
• Branding
•
•
•
•
•
• Objectives
• Flexibility
• Geographic
Terms
• Discounts
• Sales
Promotion
• Publicity
Objectives
Blend
Sales People
Advertising
Sales
Promotion
• Publicity
Potential Markets
Element
Money
Growth
Concentration
Literacy
Focus on
Relative Buying Power
Rate of Growth
Population Density
Communication concerns
II & The Product Mix
Interactivity
Branding
PLACE
PRODUCT
PROMOTION
Individual
PRICE
The II Through Stages
One Seamless Experience
Banner Ad
(to promote
awareness)
Website
User can set up the webpage
according to personal preferences,
register for e-mails, give feedback,
or make a purchase
User clicks on banner
to find out more
Awareness
Personalized
Website
Permission emails
Individualized
offerings
Exploration
Commitment
Impact of Internet Marketing
Bricks-and- Mortar
Location of Revenue Stream
Marketing Resource Allocation
Offline
Online
Cell 4
Cell 2
Cell 3
Cell 1
Brands through history
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–
–
–
–
–
–
–
–
–
–
–
“Blackbeard”
“Nazi”
Volkswagen
Believers
Infidels/Gentiles
IBM
Amazon.com
Andersen Consulting
Route 66
Tom Clancy
Mark Twain
Albert Einstein
–
–
–
–
–
–
–
The Kennedy’s
Al Capone
Ted Turner
CNN
Nickelodeon
Marlboro
Sports Illustrated
Swimsuit Edition
– The New York Times
– “Them”
– “The White House”
Brands through history
– Brands
•
•
•
•
•
•
Mercedes
The Beach Boys
Kodak
Disney
Intel (Today)
Virgin
– NOT Brands
•
•
•
•
•
General Motors
The Beatles
Xerox
Time-Warner
Berkshire Hathaway
Why Brand
–
67% - There is no risk associated with buying
brands with which you are not familiar
•
–
Lack of substantive differentiation
72% - A well-known brand is an important
factor on making buying decisions
•
“Selection shorthand”
Brand Types
–
Brand as Energy:
•
–
Brand as Security
•
–
Nordstrom
Anti-brand
•
–
Stew Leonard’s
Brand as Quality/Choice Editor
•
–
Amazon.com
Audi
Evolving: Brand as known and reliable subcontractor
•
IT Opportunity
Brand Drivers
Brand matters because We all live in a Plan
“B” Universe
– Limited Resources
• Time
• Money
• Energy
– Unlimited Options
– Limited Consequences
Brand POA Factor
• Brand determines the Purchase Ownership
Association (POA) Factor
– Terms of Engagement for 3 possible types of
relationships
• Purchase
• Ownership
• Association
– Your Brand carves out the space you ‘own’
Brand POA Factor
Purchase
Normal
(As bad as expected)
Enjoyable
(Works as it SHOULD!)
Special
(better than expected)
Rewarding
(measurably/tangibly
advantaged)
Ownership Association
Neutral
Neutral
Neutral
Intrigued
Intrigued
Intrigued
Expectant
Expectant
Expectant
Committed
Committed
Committed
Brand POA Factor
Purchase
Normal
(As bad as expected)
Enjoyable
(Works as it SHOULD!)
Special
(better than expected)
Rewarding
(measurably/tangibly
advantaged)
BJ’s Club
Warehouse
Home Depot
Nordstrom
Any airline’s
Mileage Rewards
Ownership Association
Brand POA Factor
Purchase
Normal
(As bad as expected)
Enjoyable
(Works as it SHOULD!)
Special
(better than expected)
Rewarding
(measurably/tangibly
advantaged)
Ownership Association
McDonald’s
Coca-Cola
Outback
Steakhouse
United
Premiere Flyer
Brand POA Factor
Purchase
Normal
(As bad as expected)
Enjoyable
(Works as it SHOULD!)
Special
(better than expected)
Rewarding
(measurably/tangibly
advantaged)
Ownership Association
Planet Hollywood
Levi’s
Hilfiger
United Red Carpet
Club
Brand Truisms
•
•
Every company has an ‘identity’ – whether it
chooses to control that image, or not
A Good Brand is an identify which is
–
–
–
–
•
Recognition “shorthand”
Consciously developed
Purposeful
Cultivated
A Bad Brand
–
–
Is ‘what happens’ to you
The discrepancy between promise and delivery
Brand Truisms
• A Brand is the difference between inherent
worth and perceived value
• A Brand is a Unique Selling Proposition
which translates into
– Marketing Advantage
– Profit Margin
– Higher Multiples
Brand Truisms
• A Brand has
–
–
–
–
–
An “aura”
Identity
Personality
Customer-’stickiness’
Positive inertia
Brand Examples
For Example:
What is a brand worth?
Chicken
Poop
Haul it Away, Please!
What is a brand worth?
Premium
Natural
Fertilizer
$ 10.00 per drum
What is a brand worth?
Agricultural
Chemicals
$25.00/c.wt.
What is a brand worth?
DUPONT
Better Living through
Chemistry
$50/bag
Measuring Brand Value
The Business and the Brand are Intertwined
The Business
The Brand
Customers
(number/type)
Customers
(number/type)
Fees/Prices
(revenue)
Defines
&
Drives
Potential Markets
Served
(size/growth)
Brand Share
Potential
Business Value
Brand Contribution
Brand Value
Today’s business is the DNA of the Brand and its potential to
create value via strategic decisions, such as diversification
Brand Equity
Brand Equity
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations
Other Assets
Reduced
Marketing
Costs
Trade
Leverage
Attracting New
Customers
Time to
Respond to
Competitive
Threats
Anchor to Which
Other Associations
Can be Attached
Reason-to-Buy
Help Process /
Retrieve Information
Competitive
Advantage
Familiarity Liking
Differentiation /
Position
Differentiate /
Position
Price
Reason-to-Buy
Signal of
Substance /
Commitment
Channel Member
Interest
Create Positive
Attitudes / Feelings
Extensions
Brand to be
Considered
Provides Value To Customer By Enhancing
Customer’s:
Interpretation / Processing of Info
Confidence in the Purchase Decision
Use Satisfaction
Extensions
Provides Value To Firm By Enhancing :
Efficiency & Effectiveness of Marketing
Programs
Price / Margins
Brand Extensions
Competitive Advantage
Measuring Brand Value
Brand
Awareness
Unique
Selling
Proposition
Brand
DNA
Brand
Experience
Brand Awareness is Only One element of Brand Equity
Measuring Brand Value- Brand
Equity
Brand Equity is the Premium that Consumers Pay
for Your Products and Services...
Demand Curve Shift With Brand Equity
Quantity
Q2
Volume
Effect
Brand
Equity
Leverage
Q1
P1
P2
Price or
Margin Effect
Price
…And, the Premium that Investors Pay for Your
Company.
Measuring Brand Value- Brand
Equity Vs PE
How Brand Equity Impacts PE
Financial-Centric Companies
Brand-Centric Companies
Company
1. Bergen Brunswig
2. Ingersol Rand
3. Dow Chemical
4. Conectiv
Company
1. P&G
2. Gillette
3. Coca Cola
4. Disney
PE
14
19.7
21.5
11.12
MktCap
$2.1B
10.9B
27.6B
$2.0B
PE
35.2
39.2
47.9
40.7
MktCap
$133B
50B
146B
$61.4B
Hot Market-Centric Companies
Company
1. AOL
2. Yahoo
3. Excite
4. Amazon-119
PE
253
311
491
$20.2B
The Reason Brand-Centric Companies have (traditionally) higher
PE’s stems from premiums in pricing and growth potential
MktCap
$109.4B
$39.6B
$7.3B
Advertising
How Much Advertising is Enough?
Brand-Centric Companies
Company
1. P&G
2. Gillette
3. Coca Cola
U.S. Revenue
U.S. Ad Spending
$18,460M
3,682M
6,443M
$2,743M
578M
710M
Ad $ as % of Sales
14.9
15.7
11.0
Advertising Spending
Comparables
Conectiv
SBC
BellSouth
AT&T
Bell A.
MCI
Sprint
Brand $$
.6%
1.3%
1.5%
1.5%
1.9%
3.9%
3.5%
Kodak
Cendant
Sherwin-W.
Starwood
5.7%
5.4%
6.3%
23.4%
Advertising Spending
Standards
Disney
Amex
GE
7.0%
3.1%
.46%
Building a Brand Vs Brand Equity
– Brand Awareness
• People KNOW who you are
– Brand Equity
• People pay Premium
– To do business with you
– To own you
Brand Equity Dimensions
–Awareness
–DNA
–Experience
Building Strong Brands
– Vision
– CEO as ‘Keeper of the Marque’
– Consistency
– Commitment
– Patience
Building Strong Brands
• Bases for Vision
–
–
–
–
–
Promotability
Operational Excellence
Product Excellence
USP
Powerful Potential
Building Strong Brands
• If it doesn’t ‘line up’ – it doesn’t add up
– What you SAY to the world
– What you DO in the world
– What you DO inside
Branding Strategy
STATE
Rejection
Non Recognitions
Recognition
Preference
Insistence
STRATEGY
Change Position
Increase Awareness
Continue Education
Maintain Availability
Develop High Brand Equity
Online Branding
• “E-branding is more important [than e-commerce]. And it
must come first. Because few people will buy your stuff –
online or off – unless you are top-of-mind.” – Annette
Hamilton, Executive Producer, ZDNet
• “Brand is the price of entry [to the Internet], not the
winning strategy.” – Dylan Tweney, infoNet
• “By the time your potential customers log on, they already
know what they’re looking for, and they often know from
whom they want to buy it. … They’re just not listening to
branding messages anymore.” – Michael Fischler,
Principal, The Pubs Group
Selected Internet Brands
Successful Online Branding Examples
Established as Traditional
Brand
Established as Online
Brand
Branding
Online
Branding and
Selling Online
Intermediary/
Vertical Portal
e-Commerce
BusinesstoConsumer
Ragu
American
Airlines
Yahoo!
CDNow
BusinesstoBusiness
Boeing
Cisco Systems
Avnet
NexPrise
Source: PricewaterhouseCoopers Moneytree Report 2000.
Online Branding
• “Brands stand as comfort anchors in the sea of
confusion, fear, and doubt. In dynamic markets,
strong brands have more value than ever, precisely
because of the speed with which these markets
move.” – Chuck Pettis, Technobranding
• “It took more than 50 years for Coca-Cola to become
a worldwide market leader, but only five years for
online search engine Yahoo to gain market
dominance. The role of the brand has changed
dramatically and has created a vacuum between
offline and online brands.” – Mark Lindstrom,
Executive Director, ZIVO
Brand Equity Conceptual Model
A good brand . . .
Product, Price, Community, Communication
and Distribution Programs
Wraparounds
. . . provides positive
consumer responses . . .
. . . and benefits both
target customers and firm
Brand Awareness
Customer Benefits
Depth
Confidence
Breadth
Loyalty
Satisfaction
Brand Associations
Core Product/
Service
Strength
– Relevant
– Consistent
Valence
Uniqueness
– Memorable
– Distinctive
Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis
Firm Benefits
Reduced
marketing costs
Increased
margins
Opportunity for
brand extensions
Value of Online Brands
Strength of Brand
Is Not That Important
A Strong Brand Essential
A strong brand name provides
a clear presence in the market
? Strong brands attract
customers
? Strong brands carry positive
associations with consumers
? Clear brands are associated
with higher conversion rates
? All current online “winners”
have strong brands
?
Alliances — not strong brands
— are the key to winning in
the marketplace
-party
? Readily available third
evaluators will increasingly
influence online consumption
? Speed to market is more
important than branding
? The trend toward
customization is leading to an
environment where the
meaning of a “mega-brand” is
no longer relevant
? Current online winners may
have strong brands, but so do
a number of “big losers”
?
Branding Process
Step 1
Clearly Define the Target Audience
Step 2
Understand the Target Customer
Step 3
Understand the Competition
Step 4
Design Compelling Brand Intent
Step 5
Identify Key Leverage Points in
Customer Experience
Step 6
Execute the Branding Strategy
Step 7
Establish Feedback Systems
Branding Type Comparison
Branding
Element
Offline
Online
1. Clearly Define the
Brand Audience
?
Limited to manageable number of segments to
prevent inconsistent messaging
?
Could include larger number of segments based on values or
interests rather than demographics
2. Understand the
Customer
?
Requires thorough understanding of environment,
desired purchase and usage experience
?
Requires thorough understanding of desired purchase and
usage experience in both the offline and online environment
3. Understand the
Competition
?
Requires monitoring of competitor advertisements and
activities
?
Competitor advertisements and some activities can be directly
observed online
4. Design Compelling
Brand Intent
?
Brand intent (desired positioning) designed to address
the needs and beliefs of target segments
?
Greater opportunity for customization of key messages
5. Identify Key
Leverage Points in
Customer
Experience
?
Buying process is typically a simplified representation
of customer segment behavior with static leverage
points
?
Buying process tends to be more dynamic and flexible
6. Execute the
Branding Strategy
?
Strong, positive brands are built up over time
Image reinforced through variety of offline media
?
Marketing strategy includes plan for sequenced
growth and adjustment of brand based on changing
customer needs
?
Online interactions bring n
i added concerns of security and
privacy
Limited familiarity with online brands makes fostering trust more
difficult
With the ability to customize, one customer’s brand image may
be different from another customer’s brand image
Customization for multiple segments and opportunity for early
recognition of the changing customer requires a corresponding
tailoring of brand intent
?
?
?
?
Building brand awareness requires significant
investment
Building brand loyalty takes time offline, especially
because early customer receptivity to brands is
difficult to assess (and usually involves market
research)
?
?
?
?
7. Establish
Feedback Systems
?
Collecting and analyzing customer feedback is more
time-consuming
?
Building brand awareness requires significant investment,
especially for those competitors who are not first in their
category online
Brands have the potential to generate loyalty more quickly,
especially if customers are targeted effectively
Sophisticated tools exist for tracking online; allow for
anonymous, interactive, quick feedback
Issues
• How do companies determine level of Ad or PR Spending
– Industry Standards
– Goal Standards
• Higher if you are growing or protecting brand
• Lower if you are in maintenance mode
– Situational Standards
• Go away in appropriate situation
– eg - airlines in plane crash
• Be VERY visible in appropriate situation
– Smart utility in outage scenarios
Issues
• How do companies determine level of
Ad/PR Spending
– There are no ‘ideal’ GPR levels of exposure
• Message-dependent
• Competitive environment-dependent
• Goal-dependent
• eg - introducing new products/brands/copy
requires higher GRP’s than does
maintenance. Even maintenance GRP’s go
UP in competitive environment
Issues
• Should we trade off Brand Advertising for ‘feet
on the street?’
– Good Branding builds sales AND equity
– ‘Feet on the street’ and product
marketing builds sales and CAN
diminish Brand Value over time
• Automobile rebate example
• Competitive computer advertising example
Issues: Success Metrics
• A Good Brand initiative will yield tangible
results
– You can’t react/adjust unless you know it’s
working/not working
– You can’t know if it’s working/not working
unless you measure it
Issues: Success Metrics
• Need Regular evaluation:
– Need to measure Brand Equity rather than simply
Brand Awareness
– Need a regular review of Advertising/Equity/Sales
Impact charts
• Consider Exit Strategy as the objective
– If you exit, you win
– If you don’t exit, you still win
– Measure Equity at PPE (Presumed Point of Exit) which
defines the growth or attrition in the presumed value of
the company at a potential sale point
Issues: Success Metrics
• Need Regular evaluation:
– % of target population who ‘gets’ our brand
concept
– # of new customers
– Change in customer‘churn’
– Profitability increases
– Open-ness to buy new prospects
Brand Checklist
Do WE know who we are?
Do we know who we want to do business with?
Do we know what the target market’s preferred
terms of engagement are?
Do we understand the competitive marketplace?
Have we Mapped-The-Gap in the competitive
marketplace?
Brand Checklist
Are we willing to commit long-term resources for
long-term gain?
Do we have the ‘guts’ to live by the promises we
make in public?
Do we understand the issues well enough to be
brief? (Define the Vision)
Do we understand who needs to do what to
Create the Vision
Maintain the Vision (e.g. –can it wear ears?)
Expand the Vision (We can’t know everything at the
start)
Branding Summary
– Branding is fundamentally different from the other marketing
activities — product, pricing, communication, community
and distribution — in three ways:
• Brands are reflections or outcomes of the firm’s marketing activities
• Unlike the other activities, branding is an integral part of every
marketing activity and strategy
• Strong brands can be used to enhance the effectiveness of all other
marketing activities
- The presence of a strong brand enhances positive marketing
activities such
that awareness, exploration and commitment are more
effectively established.
Keys to Customer Relationship
Awareness
Exploration /
Expansion
Commitment
Dissolution
Deadly Sins of Customer Experience
Customer Experience Over Time
Branding Vs Customer Experience
Brand Awareness
Is the Key to Success
Building
brand awareness leads to traffic
Investors need to see site traffic and the
likelihood of future profitability
Offering
a great customer experience
when nobody knows about the site is a
waste of resources as long as a baseline
functional standard is being met
Customer Experience Is
the Key to Success
Focusing
on customer experience is the
single most profitable thing a business
can do
Customers
that have a positive
experience with the site are more likely
to keep coming back and to tell their
peers about it
Positive customer experience leads to
purchases at commerce sites,
exploration at content sites and
participation at community sites
Goals for Creating Customer
Experience
1.
Create a Rich Description of the Target Customer
2.
Develop Use-Case Scenarios for Each Target
Segment
3.
Effectively Integrate the Online and Offline
Experience
4.
Articulate Clear Stages of Desired Experience
5.
Effectively Assess Relative Levels of Hierarchy
6.
Highly Leverage the Evangelists
Customer Interface
1.
2.
3.
4.
5.
6.
7.
Site’s layout and design
Text, pictures, sound and video that
webpages contain
The ways sites enable user-to-user
communication
Site’s ability to self-tailor to different users
or to allow users to personalize the site
The ways sites enable site-to-user
communication or two-way communication
Degree site is linked to other sites
Site’s capabilities to enable commercial
transactions
Context
Content
Community
Customization
Communication
Connection
Commerce
Content
Offering Mix
Appeal Mix
Multimedia Mix
Content Type
Community
Community can create
attractive content
Community can make
certain activities possible or
easier, thus satisfying
needs not attainable
individually
Customization
Personalization
Tailoring by Site
Personalization
Login Registration
? Cookies
? Personalized E-Mail Accounts
? Content and Layout Configuration
? Storage
? Agents
?
Tailoring by Site
Tailoring based on past user
behavior
? Tailoring based on behavior of other
users with similar preferences
?
Is– Land’s End
Is– Mercury Mariner
http://www.mercuryvehicles.com/marinerhybrid/preorder.asp
Is – Luxury Retailer on the Web
http://www.pearlparadise.com/
Interactivity, Viral Marketing
Burger King’s: http://www.subservientchicken.com/
GAP’s: http://www.watchmechange.com/
Levi Jean Finder
http://www.us.levi.com/fal05a/levi/jeanfinder/l_jf_app.jsp?bmUID
=1138045809789
Mitsubishi: Thrill Ride Challenge
http://www.mitsubishicars.com/06eclipse/
Ford Supercar Challenge:
http://www.fordvehicles.com/supercarchallenge/err/index.asp
Sims: http://thesims.ea.com/index_flash.php,
http://simcity.ea.com/about/simcity4/flash.php
http://www.jamster.com/s/jiw/html/affiliate/om/us/buy_this_real_t
one/index.htm?tduid=58ebbda74fa9786e730de3c098bb54d9
Interactivity, Individualization
Website
Landsend.com
Levi.com
Shopbop.com
Jeans
Process
FIT
Comment
$45-54
Virtual
model/custom
Women’s: Size
off Men’s: Tight
Custom tester
found difficulty in
selecting color
onscreen
Jeanfinder sort
Good fit - looked
different online
Good, simple
View pair on
model with
selected body
type
Perfect
Expensive, click
out of guide to
find
$40-44
$185.00
Tommy.com
$110.00
Photo changes
Not too good.
Impressive level
of customization
Mejeans.com
Custom/$89.99
High level of
customization
Close
Good videos,
difficult to use.
Source: WSJ
1/19/2006
Communication
Broadcast
Interactive
Broadcast
Mass Mailings
? FAQs
? E-Mail Newsletters
? Content Update Notifications
? Broadcast Events
?
Interactive
E-Commerce Dialogue
? Customer Service
? User Input
?
Connection
Links to Sites
Homesite Background
Outsourced Content
Percent of Homesite Content
Pathway of Connection
Commerce
Registration
Orders Through
Affilates
Shopping Cart
Configuration
Technology
Security
Order Tracking
Credit Card Approval
Delivery Options
One-Click Shopping
EBAY
EBAY
Relationship Involvement
High
Low
Automobile
35-mm Camera
Expensive Watch
Stereo Component
Eyeglasses
Scotch Whiskey
Hair Coloring
Wine for Dinner Party
Washer/Dryer
Face Soap
Credit Card
Salad Oil
Deodorant Soap
Insecticide
Headache Remedy
Liquid Bleach
Insect Repellent
Disposable Razor
Potato Chips
Soft Drink
Paper Towels
Toilet Tissue
High
Low
Profitability
Customer Tenure and Profitability
Short
Long
Customer Lifetime
A Time and Place for II
Level
of
Indiv.
High Individualization,
Low Interactivity
Example: bank statement
Low Individualization,
Low Interactivity
Example: news service
High Individualization,
High Interactivity
Example: Design Robot
Low Individualization,
High Interactivity
Example: library
Level of Interactivity
A Framework for Building CR on the
Web
Marketing
Levers
Awareness
Exploration/
Expansion
Price
Product
Promotion
Distribution
Brand
Commitment
Dissolution
Product Definition
Target Market
Product
Price
Place
Promotion
Product Idea
Brand
Package
Warranty
Physical
Good/service
Features
Quality
Accessories
Installation
Instructions
Product Line
Individual
Family
Manufacturer
Dealer
Protection
Promotion
Both
None
Full
Limited
Product Value Ad
Diff
Extended
Warranty
Meal
Preparation
Trade In
Fitness Books
Financing
Exercise Plan
Augmented Product
Engine
Daily Newsletter
Tires
Advice
Radio
In-Depth Information
Transportation
Traditional:
Sports Utility Vehicle
Basic Product
Dieting Information
New Economy:
e-diets.com
Core Benefit
Internet Product Types
Product Type
Digitized Good
Service
Retail or
Distribution
Service
Product
Augmentation
Primary Purpose
Internet Properties
Is not used up in
consumption; easily
reproducible;
transferable
Standardizes service;
allows producer and
Performs core servic e consumer to be
benefit online
separated in space and
time; adds vividness to
intangibles
Sells, brokers, or
Helps dispose of
distributes p roduct
perishable inventory;
delivered offline
aggregates demand
Adds extra services
Differentiates at low
or benefits to a
incremental cost
service or product
Provides core benefit
in digitized form
online
Examples
Downloadable software,
music, newspapers
Schwab.com,
eDiets.com, Yahoo
Sports Fantasy Baseball
Plus
Amazon.com, priceline,
FreeMarkets
FedEx, Fidelity
Pricing Strategy Framework
Select Retail Pricing
Strategy
Hi-Lo Pricing
Everyday Low
Pricing
Select Pricing Strategy
No Pricing
Flexibility
Price at market
Corporate Mandate
Target return pricing
Target profit return
High Initial Demand
Fairness pricing
Bundling
Frenzy pricing
Price discrimination
over time
Correlated Demand
Bundling
Volume discount
pricing
Two-part pricing
Dynamic Pricing
English auction
Reverse English
auction
Dutch auction
(regular and eBay
type)
First price sealed-bid
auction (regular and
Priceline type)
Reverse first price
sealed-bid auction
Group buying
Electronic exchange
Price as
Marketing Strategy
Prestige
Sign of quality
Promotional
Product Pricing and the Internet
The Internet Will Lead to Price
Commoditization
The Internet makes vast amounts of
information available to consumers.
As a result, markets will become
more efficient, and differences in
products and pricing will decrease
? Consumers on the Internet are not
restricted by geography when
making their purchases, so they are
free to choose among a wider
range of providers and may switch
more frequently
? On the Internet, providers have
difficulty differentiating their
products; they find it hard to
compete on anything but price
?
The Internet Will Not
Commoditize Prices
Even if all else is equal, brand will
still command a premium
? Providers are able to differentiate
their offerings by bundling
products and services; consumers
will place a premium on attractive
"bundles"
? The Internet makes it possible for
consumers to create their own
products and bundles
? The Internet offers consumers a
new convenient purchasing
experience that they are willing to
pay for
?
Pricing Sins
Pricing Summary
– Firms have a wide variety of potential pricing strategies
and price points to consider when deciding how to best
implement profit-maximizing strategies.
– Firms face multiple pricing decisions including basic,
dynamic, and advanced pricing strategies.
– There are a variety of pricing levers for firms to employ in
their pricing strategies. Each stage of the customer
relationship has a set of appropriate pricing levers that
should be used.
Online/Offline Promotion
Offline
Outdoor
Advertising
(Billboards)
Radio
Yellow
Pages
Sales
force/Faceto-Face
Public
Relations
Televisio
n
Telemarketing
Brochure
s
Newsletter
s
Magazine
s
Newspapers
Direct
Mailings
Point-ofPurchase
Displays
Sponsorship
s
Customer
Service
Online
Banner Ads
Websites
Rich
Media
Interstitial
s
Dynamic
Ads
Classifieds
& Listings
Search
Engines
Mass
Personal
Websites
Interactiv
e
Television
Personal
Wireless
Devices
E-Mail
Marketing
Types of Online Media
Medium
Advantages
Disadvantages
Websites/Personalized
websites
Communicate rich, detailed information that users
can navigate at will; can track users and customize
site accordingly.
Narrow reach
Banner ads
Link directly to buying opportunity; easy to me asure
effectiveness; wide reach; potential for effective
targeting
Low attention and click -through rates; short life;
limited “pass -along” audience; very high clutter;
fleeting exposure
Interstitials
Catch users’ attention; link to buying opportunity
Can annoy users; limited “pass -along” audience
Rich media
Attention -getting; link to buying opportunity
Can annoy users without broadband access
Dynamic ad placement
Serves up customized ads to users in real time
Difficult to execute well; can annoy users, o ther
advertisers
Search engines
Good credibility; high believability; guarantee of
position available; significant audience at major sites
High competition; information overload; limited
“pass-along”
Classifieds and
listings
Relatively inexpensive, poten tial for wide exposure;
qualified audience
Clutter
Opt-in e-mail
High demographic selectivity; high credibility;
significant flexibility; proven high click -through rates;
absolutely inexpensive; some pass -along
Requires substantial user base before effect ive;
high clutter
Mass e -mail
High reach; inexpensive; flexible
Low attention and significant resentment (spam
image)
Customer service
Interested parties asking for help, thus high targeting
value; generates loyal customers
Very expensive to provide comp rehensive
telephone, e -mail, and online support
Selected Internet Ad Terms
Ad Clicks
Aggregate number of user clicks on a banner ad
Ad Views
(Impressions)
Number of times a banner ad is downloaded to a user’s browser and presumably looked at
Click-Through
Percentage of ad views that are clicked upon; also “Ad Click Rate”
CPC
(Cost-per-Click)
Formula used to calculate what an advertiser will pay to an Internet publisher based on
number of click-throughs a banner generates
Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per
banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500)
Measurement recorded in server log files that represent each file downloaded to a
browser; since page design can include multiple files, hits are not a good guide for
measuring traffic at a website
Number of individuals who visit a website in a specified period of time; requires the use of
registration or cookies to verify and identify unique users
A series of requests made by an individual at one site; if no information is requested for a
certain period of time, a “time-out” occurs and the next request made counts as a new visit
— a 30 minute time-out is now standard
CPM
Hit
Unique Users
Visits
Promotion Process
Communication
Criteria
Behavioral
objectives
Available
spending
Customer
segments
Media
Criteria
Ability to
further
behavioral
objectives
CPM
Ability to
reach target
segments
Chose
Media Mix
Direct mail,
Internet,
broadcast,
print, pointof-sale, etc.
Tie Back to
Overall
Plan
Allocate
Spending
Allocation
of spending
across
media mix
elements
and time
periods
based on
relative
priority
Tie media plan
back to
communications
plan (e.g., make
sure the media
plan will drive
the trial or
awareness
required)
Community Levels
Level of Community
People
Characteristics
Nascent
?
Small number of core
members, small number of
participants
Formative
?
?
Process
Characteristics
?
?
Culture
Characteristics
?
?
?
Somewhat less defined and
focused processes of
communication
Lack of segmentation of
users/little segmentation of
discussion topics
Momentum is kickstarted
and driven by core group of
founders
High on energy, low on
focus
Community’s brand is
evolving
?
?
?
?
?
Small number of core
members, higher number of
participants
Users begin to build equity
Small number of core
members, higher number of
participants
Users begin to build equity
Gains more momentum
Refinement of missions/
goals (as defined by
members)
Community is building a
solidified brand
Mature
?
?
?
?
?
?
?
?
?
Technological
Characteristics
?
Fewer technological
options for communications
?
More options for
communication technology
explored
?
Increased number of core
members, high number of
participants
Users become
operationally entangled
Efficient processes of
communication established
Clear segmentation of
topics and users
Achieves critical mass
Mission close to fully
defined according to
members
Membership alignment in
shaping of the community
Leadership positions within
the community are
established
Community establishes
brand
Preferred technology used
for communication is
established
Community Building Options
Nascent
General Strategy
and Operational
Objectives
?
Aim for growth (in
membership)
?
Aim for change (in functionality and
mission)
?
Attract users by creating
administrator -user value,
promote administrator generated content
?
?
?
Seek feedback to determine
where the community is going
?
Find and build upon one or a
few well -used methods of
communication
?
Foment relationships and
vibrant discussion within only a
small number of community
groups
?
?
Marketing
Objectives
Formative
Mature
?
Leverage increasing size to create
user-to-user val ue and promote user generated content
Aim for sustainability (in
solidifying branding and
presence)
?
Seek feedback to further refine
community goals and mission
according to members
Leverage size to increase
user -administrator value (e.g.,
advertising)
?
Explore different processes of
communication (asynchronous vs.
real time, or both)
Establish reliable feedback
loops to ensure the recognition
of member needs
?
Determine most appropriate
methods of community
communication
?
Further develop community
leaders/caretakers of the
community to create
sustainability
?
Incorporate offline events/
marketing to further solidify
community relationships,
activities and community
presence
Refine community facilitation
processes; establish rol es for which
members are chosen and can
volunteer for (e.g., watchpeople,
guides)
?
Leverage CRM to tailor site and
functionality to the member
?
Allow for further segmentation of
discussion topics
?
Leverage processes of offline community (e.g., rituals and tradition)
?
Increase member base
?
Get the word out
?
Use good content to attract
members
?
Refine community vision (as defined
by members)
?
Establish solid mission and
brand
?
Generate equity for members within
community
?
Establish community presence
?
Expand possibilities for equity
generation
Community Example - EBAY
Community Effect Example - EBAY
Monthly Unique Visitors
(in thousands)
30,000
29334
25,000
20,000
15,000
10,000
3153
5,000
2904
2778
905
0
eBay
uBid.com
Yahoo
Auctions
Andale Sites
Qool.com
Place Strategy
Place Objectives
Channel Type
Service Level
Direct
Indirect
Distribution
Type
Market
Exposure
Middlemen
Management
Physical Distribution
Total Costs
Inventory Costs
Costs ($)
Lost Sales
Transportation Cost
Customer Service Level (%)
Channel Efficiency and Intermediaries
1
M
C
2
M
C
1
3
4
4
5
M
C
6
M
2
5
D
C
7
8
M
9
C
M
3
6
C
(a) Number of contacts
(b) Number of contacts
MxC=3x3=9
M+C=3+3=6
M = Manufacturer
C = Customer
D = Distributor
Distributor Value Add
Market Information
Promotional Effort
Transactional
Activities
Monitoring sales trends, inventory
levels, competitive behavior
Banner ads, sales promotions, traditional
advertising support, personal selling
Bargaining on price and terms, order
processing, credit, inventory and
assortments
Warehousing, transportation to buyer,
sorting and packaging into desired forms
Storage and
Transportation
Facilitation Activities Credit card processing, invoicing,
shipping confirmations
Installation and
Service
Technical support, customer service
lines, warranty work, repair, spare parts,
etc.
Distribution Summary
– The Internet is a distribution channel. It facilitates the
exchange of goods and services between buyers and
sellers.
– The Internet has become a driving force for
disintermediation.
– The distribution levers include activities that affect
buyer-seller relationships through the type of
intermediary, number of intermediaries, intermediary
functions and responsibilities, number of channels and
degree of channel integration.
Market Research
Target Market
Marketing Research
Customer
Identification
Market Opportunities
Marketer
Definition
Public
Market Problems
Action
Consumer
Benefits of Internet Market Research
Quickly gain crucial market intelligence
Act upon first-mover advantages
Stay afloat in a fast-paced environment
Reduce market research costs
Many more…
Market Research Uses
How to
segment
the market?
Who are my
customers?
What is
the price
elasticity?
Conjoint
Analysis
Customer
Identification
When
do they
purchase?
Discrete Choice
Modeling
Marketing
Research
Buying-Habit
Studies
Opinion
Research
What do
they like?
Environmental
Studies
Competitive
Analysis
Who are my
competitors?
What are
the growth
trends?
Market Research Types
Decision Factor
Offline Method
Online Method
Cost
High
Low
Turnaround Time
Slow
Quick
Labor-Intensive
Labor-Nonintensive
Medium
High
High
Low
Accurate
Inaccurate
Controllable
High to Uncontrollable**
Limited
Unlimited
High
Low
Limited
Unlimited
High to Medium
Low
Low
High
Effort
Data Quality*
Researcher Control
Sampling
Sample-selection Bias
Delivery/Illustration
Interviewer Bias
Geographical Coverage
Anonymity guarantee
Ethical Issues (privacy)
* Quality of data is defined here as ease and timeliness of data collection and entry.
** As the Internet becomes ubiquitous, this issue is becoming less important.
ORGANIZATIONAL EFFECTIVENESS
ENVIRONMENT
CLIMATE
Other Teams
Enthusiasm
STRUCTURE
Competition
Reward
System
Accountability
GOALS
Reporting
Relationships
Values
Clarity
Collaboration
Mission
Philosophy
Culture
Commitment
Stress
Feedback
System
Flexibility
Marketplace
Decision
Making
Behavior
Norm
Involvement
Pressures
Trust
Competition
Design Experience
Joseph Lewis Aguirre
Design Experience
http://www.interaction-ivrea.it/en/index.asp
http://www.monsterskate.com/
http://www.visualthesaurus.com/
http://www.hermanmiller.com/
http://www.generalmills.com/corporate/index.aspx
www.reflect.com
Online Marketing
www.godaddy.com
http://smallbusiness.yahoo.com/merchant/
http://www.google.com/ads/
http://www.cj.com/
http://www.content.overture.com/d/
Multinational Customer
Joseph Lewis Aguirre
Business Management for The Multinational
Customer
Globalization of technology is bringing diverse
cultures together into a common business value
chain raising with consequent issues:
• The effects of cultural and language differences
on consensus and collaboration.
• Standardization of business processes.
• Real-time status for business transactions.
• Maturity of the technological environment.