Filip Stachecki: /* Marketing Strategy and Practice⌘ */

2016-05-16T06:20:58Z

Marketing Strategy and Practice⌘

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[[Category:Private]]
[[Category:OCEB2]]

==Module 1. Business Goals, Objectives⌘==

Business Basics from the purely Business Point of View
* Business fundamentals
* Strategy
* Planning and goal-setting
* Project management
* Marketing
* Staffing
* Finance

===Source of information⌘===
<table>
<tr><td>[[File:MBAinADayCover.png |100px]]</td><td> Steven Stralser, MBA in a Day, Wiley, 2004 [ ISBN-10: 0471680540 ]</td></tr>
<tr><td>[[File:TheCompleteIdiot'sGuidetoMBABasicsCover.jpg |100px]]</td><td> Tim Gorman, The Complete Idiot's Guide to MBA Basics, 2nd Edition, Alpha, 2003 [ ISBN-10: 0028644492 ]</td></tr>
</table>

===Project Management⌘===
* PMI definition: "The application of knowledge, skills, tools and techniques to a broad range of activities to reach a predetermined goal or objective."
* Usually organizations manage project portfolios
===Project Management as a Process⌘===
*PM is made of '''IPECC''':
**'''Initiation''' - project is started, a project manager is selected.
**'''Planning''' - plan how the project should go.
**'''Executing''' - project team completes the work.
**'''Controlling''' - control the work to ensure that’s it done according to plan.
**'''Closing''' - project work is complete, close out the project finances, team reports.
*According to the PMI, one of these steps fails in 74% of projects
*IPECC are activities of BPs
====Sample Questions⌘====
According to PM Institute, what might cause a project failure?
*One of the process steps: financing, risk appraisal, goals, monthly progress reports.
*One of the process steps: purposes, finances, actions, prioritizing.
* One of the process steps: delineation, time frames, venue creation, promotion activities.
* One of the process steps: initiation, planning, executing, controlling, closing.
====Sample Question⌘====
According to the Project Management Institute, Project Management covers what areas?
* A variable sequence of specialized activities including: reporting a sequence of activities, designing the proper retreats for the managers, and supporting roles.
* A fixed sequence of standard activities including: scheduling a sequence of activities, designing, effectively managing business and supporting modern systems and processes.
* A range of topics covering management of development process to ensure its efficiency, effectiveness and success.
* A wide range of topics, designed to reach an objective or goal, including the application of knowledge, skills, tools and techniques.

===Marketing⌘===
* Is a Strategy and a Process
* Marketing are activities you do in order to sell a product or provide a service
* Influences how customers perceive a business and generates interest and encourages customer to pay for the product or services
====Marketing Strategy and Practice⌘====
* Marketing is actually the process by which we offer goods or services up for sale
** Marketing is not a cost or expense but rather a strategic investment
** Benefit of marketing is longer-term
** Social and managerial process by which individuals or groups obtain what they need and want through creating, offering and exchanging products of value with others
* The foundation and catalyst of making sales is marketing
* The key to successful sales is a consistent proactive marketing strategy

====Key to consistent proactive <br/>marketing strategy⌘====
<br/>(from MBA in a Day)
# Dedicate their resources to ensuring that the '''wants, needs and demands of the customer are the firm's focus'''
# Customer focus is the foundation of the strategy of the marketing process
# Plan that gives direction, guidance, and a structure of proactive strategies to increase sales and improve business relationships

====Marketing Four P's⌘====
* Marketing Mix is represented by the well-known "4 P's of Marketing"
[[File:4PsOfMarketing.png]]

====Marketing as Business Process⌘====
* An effecting marketing strategy/plan is an '''value-creating process''' composed of several elements:
** Market segmentation
** Marketing strategy
** Market research
** Pricing
** Placement
** Value chain

====Market Segmentation⌘====
* Marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them.
* Market segmentation is simply taking a look at the overall market of your product and service and '''thinking of it in terms of smaller, more manageable pieces'''
* Market segmentation strategies:
** geographic segmentation (regional or local markets)
** demographic segmentation (age, gender, income, race)
**product segmentation (cars: luxury, midsize, compact, sport, ...)
** sales-channel segmentation
* Example:
** Market for a hotel rooms.
** Rolls-Royce targets wealthy individuals with disposable income > 500k a year
** Who would be a segment for Barbie Doll?
====Marketing strategy⌘====
Marketing strategy is like a plan that directs business activities of a company to achieve predefined goals

====Market research⌘====
* All activities that help to get and analyze information on customers (attitudes, behaviors, ...) that affect buying your product.
* Market research means trying to understand your customers.
* Some important types of information:
** Buying behaviors (the way in which customers buy)
** Customer feedback / satisfaction
** Lifestyle and attitudes

====Pricing⌘====
Some examples of pricing strategies:
* cost-plus pricing
* competitive pricing
* value pricing

====Placement⌘====
There are many ways of selling:
* direct sale
* wholesale / retailer
* telemarketing
* Internet
* ...

====Marketing and the Value Chain⌘====
* The focus on strategy is to build value for the company, so strategy often involves value chains
* A value chain is process of producing and delivering product or service (all activities that add value to the product in any way)
* A value chain typically includes
** Inbound and outbound logistics
** Marketing and Sales
** Services
** Firm's Infrastructure
** HR
** Technology

===Human Resources⌘===
* A critical process area
* HR helps managers hire, orient, train employees, creates guidelines for employee compensation and performance evaluations.
** Recruitment process is responsible for filling open positions in the company.
** Compensation is defining job functions and qualifications, defining salary ranges

===Human Resources⌘===
Signs of a poor Onboarding and related processes include:
* Regular breakdowns in flow
** Missed deadlines
** Increased returns
** Decreased customer loyalty
** Regular administration mistakes
* Frequent absenteeism and turnover caused by:
** Overstressed employees
** Poor morale
** Looking for other employment
* Excessive overtime caused by employees being overworked or given too much responsibility
** Overworked employees can lead to burnouts and increase costs in the long run

===Strategy⌘===
[[File:200Michael_Porter.jpg |100px]]

* Strategy is a process that transfers a long term vision into day-to-day tactics.
* Strategy involves all areas of the company from operations to finance to HR.
* Processes should be connected to a business model (BMM)
* Michael Porter created standard for strategy and analysis
* Porter's Five Forces process
** Analyse the industry and company's environment
** Paints a picture of the current environment
** Develop long-term strategies

=== Porter's Five Forces⌘===
* Five Forces is a framework for industry analysis and business strategy development.
* This model can be used on any firm of any size in any location in any industry and can be utilized regularly to keep a constant eye on the market, the direction of the market, and the competitors coming and going within that market.

==== Porter's Five Forces Analysis⌘====
[[File:Porters_five_forces.png]]

The outcome of the Porter's Strategic Process should be a strategic plan with objectives with dates and quantities
==== Porter's Five Forces Examples⌘====
* '''Threat of new entrants''': "The barriers to entry in the telecommunications market are extremely high"
* '''Threat of substitute products''': substitute of traditional phone with VoIP phone, tap water as a substitute for Coke
* '''Bargaining power of customers''': Large store can purchase in large volume from the supplier, forcing down prices for the end customer.
* '''Bargaining power of suppliers''': If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it from them.
* '''Intensity of competitive rivalry''': all four aforesaid create rivalry among competitors.

===Managers Must⌘===
* Monitor the Essential Six business principles
** '''Value for customers''' - a business exists to create value of some kind (increase value of raw materials or activities)
** '''Organization''' - an organization must have goals and the resources (human, material, financial)
** '''Competitive advantage''' - a company must do something better than other companies in that business
** '''Control''' - ensure that the manager knows what's going on
** '''Profitability''' - a business has to make money
** '''Ethical practices''' - hold themselves to the highest ethical standards

===Management Types: process Participants⌘===
* '''Finance''': make certain there is enough money for the company to operate
* '''Accounting''': counts the money
* '''Operations''': makes what the company sells
* '''Marketing''': sells
* '''Sales''' bring the money
* '''Support functions''' do the rest (HR, Legal, Investor Relations, Facilities)

===Accounting Basics⌘===
* '''Asset''' - is an economic resource, everything the company owns: the furniture, the inventory, the equipment, the building, and even cash in the bank, '''value of ownership that can be converted into cash'''
** Assets are there to generate cash.
* '''Liability''' - amount of money owned by the company to an organization or individual (suppliers, creditors, government - taxes). It must be paid on specific date.
** Liabilities arise from past transactions or events.
* '''Owners' equity''' - the amount left for the company's owner
** '''Assets - Liabilities = Owner's equity'''
* '''Balance sheet''' - a picture of the company's accounts at a certain date
===Accounting Basics⌘===
[[File:BalanceSheetExample.png | 400px]]
====Finance, Metrics and Balance Sheet⌘====
* Finance and Accounts are deeply involved in the mysteries of the balance sheet
* Of all controls the balance sheet is the most important
* Financial Metrics include
** '''Working capital''' measures a company's capability to pay its current obligations (Current Assets − Current Liabilities)
** '''Current Ratio''' also called the working capital ratio, shows the relationship between current assets and liabilities
***[[File:CurrentRatio.png]]
** The '''quick ratio''' (AKA acid-test or liquid ratio) is the capability of the company to meet its current obligations with most liquid assets
***[[File:QuickRatio.png]]

====Management Analysis⌘====
In addition to monitoring the financial health of the company, managers engineer the results of the strategy.
* '''Break-even point''' (BEP) is the point at which cost or expenses and revenue are equal: the operations has not made a profit or a loss
[[File:Break-Even point.png]]
* '''Return on Investment''' (ROI) or sometimes just return is the ratio of money gained or lost of an investment relative to the amount of money invested
** ROI = (Net profit / Investment) × 100%

====Cost Accounting ⌘====
* Process of tracking, recording and analyzing costs associated with the products or activities of an organization.
** '''fixed costs''': remain the same regardless of the amount of product the company makes or sells
** '''variable costs''': change with company's production and sales volume
* Prototypical factors include
** Raw Materials
** Labor
** Indirect Expenses
** Overhead (electricity, water, rent, ...)


===Module 1. Questions⌘===
* How can marketing process be described?
* What does HR do?
* What is Porter's Five Forces Analysis?
* What is Value Chain?
* What is BEP and RIO?
* What is Working Capital?
* What kind of costs are there?

OCEB2F 01 Business Goals - Revision history

Filip Stachecki: /* Marketing Strategy and Practice⌘ */