NBC1 2008, (c) 2008 Jay A. Smith 1 Class 3 Sales & Marketing.

NBC1 2008, (c) 2008 Jay A. Smith

1

Class 3

Sales &

Marketing


2

Today’s Drucker

The purpose

of a business

is to create and

keep a customer.


3

Sales & Marketing

Sales (Revenue): Money received for selling product or service Source of funds for business operations Basis for business existence

Marketing: how company gets sales selection, pricing, promotion and distribution of products/services to

customers

COMPANY Customers

Product/Service

Money


4

Marketing and 4 C’s & 2 S’s

___ CompanySuppliers

Competitors

Substitutes

Channel Customers

Collaborators協力者 /協業者 “5th C”


5

Customers Who are your customers (or target customers)? How many potential customers are there? What are their characteristics?

Age, sex, wealth, education, hobbies, work, is it one person? What are their goals, desires, needs, wants?

How do they buy? What do they think about? Where do they get information? Who influences them? What is important to decide (price, features) When do they buy (seasonal products, bonus season) When do they pay?

Market segment = group of similar customers Broad market = U.S. Market, Software Market Narrow market segment = left-handed golfers


6

Marketing Universe

Product/Service (what) Market (where, who)

Location (U.S.,Japan, 鹿児島市 ) Gender (male, female) Age (<21, 21-35, >70, 子供… ) Activity (ski, golf, travel) Preference ( 和風、洋風、辛口）

Application (how, why) New application for a keitai New application for a tree

Ｐｒｏｄｕｃｔｓ

ＡｐｐｌｉｃａｔｉｏｎｓＭａｒｋｅｔ

ｓ


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Example Consumer Market Segmentation & Positioning

Older Drivers

Older Families

Younger Families

Single Men

Single Women

Jaguar Mazda Volvo Ford Toyota

O

O

O

O

O

O

O

O

O

O

O

O

O

O O O

O

O

Wealthy, Single, Women

Wealthy, Single, Men

CarAmericanSafeZoomClassy

Takako Tanaka

JaguarIn Pink

Automobiles


8

Business Market Segmentation

All U.S. Businesses

1-person companies

Small Businesses>1 person

Medium Businesses

Fortune500

Microsoft

Large Businesses

10 million total

1

500

9 million

How Many

~ 10-20,000


9

Consumer & Business Markets

ConsumerMarket

Business/IndustrialMarket

Product

Service

Haagen-Dazs

Amazon

Uniqlo

Starbucks

eBay

SonyGE

DellIntel

Askul

HP

Bloomberg

Microsoft

ヤマト

Nike

Secom

Hair Salon


10

3rd Party Business Model

COMPANY Customers

Product/Service

Money

COMPANY User

Product/Service

Money

Sponsor

OtherService


11

Sales/Buying Cycle

Awareness => Interest => Trial =>Purchase => Repurchase

Hear About Curious Try Buy Keep Using

This Exists Educate Test Use it KeepBuying

Repeat customers are key to business success


12

Industry/Market Life-Cycle

Emerging Growing Maturing Declining

SALES

TIME

Awareness Interest Trial Purchase Repurchase


13

Technology Adoption Life Cycle

Innovators EarlyAdopters

EarlyMajority

LateMajority

Laggards

Geoffrey Moore, Crossing the Chasm

Time

Examples- Internet

AcademicsTech. Fans

FinancialServices

Main Market


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4Ps – “Marketing Mix”

Product (what do we make) Place (where do we sell it) Price (how much we sell it for) Promotion (how we communicate about it)


15

Product

What is our product and/or service Physical/tangible – alarm, software, newspaper, coffee Intangible – security, insurance, information, experience

Why do people buy it What does it do? How is it used?

Does it need something else? One-time or consumable?

Packaging (box, label, information, customer experience) Positioning

How different is it (perceived) from other products? What is my brand image/strength


16

Place – Where do I sell?

Choosing the Channel, Supporting It How many potential customers are there? Can I easily identify customer? How expensive is my product? How many products can I sell one customer? How powerful, or valuable are the resellers? Are there many resellers that compete?


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Price Issues What does it cost to produce? (floor)

Cars, Soda, Computers Pharmaceuticals, Software

How much value does it have to customer? (ceiling) How many can I sell at each price?

How many customers are there? How much competition is there? Is it easy to compare with other prices? How much better is my product?

Does price fit with my positioning?


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Price & Margin

Cost

Price to Channel

Price to customer


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Promotion


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Promotion (communications, “selling”)

Advertising Push (direct mail, email)

Is each customer readily identifiable? Pull (TV, radio, poster, newspaper, some banner ad)

Can’t readily identify individual customers Internet can be push or pull Chirashi?

Public Relations Investor Relations Intel Case Examples

Motorola: 13 Wall Street Journal Ads Intel: 6% rebate = 4% up to 66% of Print, 2% up to 50% of TV/radio


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Visual Aids


22

Humor in Advertising


23

Packaging Functionality


24

Product Positioning Promotion


25

Promotion & Market Segmentation

Men

Overweight Men

Overweight Athletic Men

Overweight, Athletic, Beer-Drinking Men

Overweight, Athletic, Beer-Drinking Men,

Who care about their figure

Taro Tanaka

Night TV

Direct Mail

FootballBroadcast

FitnessMagazine

Train Poster

Promotion Media

People TV

Targeted Poster


26

Women, buy ALL the stuff

Women buy or influence the purchase of nearly all consumer products

and an increasingly high percentage of business related products

1

1 Tom Peters, author of In Search of Excellence


27

Next Class 5月 27日 Regional Goods Marketing Project

Presentation


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Region Marketing Project Group project 1-2 people Pick product/service from Kagoshima or home region/

country Pick a target market Develop company sales/marketing/branding promotion 5/ 月 27 日 presentation (powerpoint, poster, or other)

Presentation: 5 分 Q&A and advice: 2-5 分 English Preferred


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Famous “Country” Products

Mercedes Benz, BMW Fendi, Versace Victorinox Rolex, Omega Seiko, Casio Elvis Presley Gekkeikan, Kikkoman Glenlivet, Chivas Regal Jack Daniels Jamieson

German Car Italian Clothing Swiss Knife Swiss Watch Japanese Watch American Rock & Roll Japanese Sake, Soy Sauce Scotch Whisky Tennessee Whiskey Irish Whiskey


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Guinness = Ireland = Genius?

+ Alcohol as Product Easy to label, package Niche-ability Easy trial Consumable Addictive Social pressure

Challenges Advertising Costs Channel Strength Social pressure

159 国に

36.5 億本　 per year


31

Region Goods/Service Promotion Project

Product/service: Company/brand: Customer target & size: Promotion message: Place: Channel: Competition: Price: Collaborators:

+ ADVERTISEMENTSample


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Promotion Project

Product/service: Company/brand: Customer target/size: Promotion message: Place: Channel: Competition: Price: Collaborators:

Kagoshima fresh tonkatsu Big Pig Ka-ton Japanese tourist hotels (200?) Japan’s juiciest tonkatsu Trade fair, magazine, site visits Direct (sales force) Kumamoto Ton, Nissin Slight premium Kagoshima pig farmers 会


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So Fresh You Think It Can Fly

TM


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Fit – Is this the Right Match?

Opportunity Environment (4Cs) Marketing Mix (4Ps) Selling/Buying Cycle (Goal) Promotion Message & Strategy Business Model


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Suggested Readings

Books 競争の戦略 by マイケル・ E. ポーター日本の競争戦略 by マイケル・ E. ポーター , 竹内弘高キャズム by ジェフリー・ムーアフォーカス―市場支配の絶対条件アル by リースパーミションマーケティング―ブランドからパーミションへ by セスゴーディ

ンネットビジネス戦略入門 by パトリシアシーボルト

Video ペイ・フォワード with ケビン・スペイシービッグ・チャンス with ケビン・スペイシー Glengarry Glen Ross with ケビン・スペイシー

WWW Entrepreneur.com


36

Class 4:

Marketing Presentations


37

Region Goods/Service Promotion Project

Product/service: Company/brand: Customer target & size: Promotion message: Place: Channel: Competition: Price: Collaborators:

+ ADVERTISEMENTSample


38

Fit – Is this the Right Match?

Opportunity Environment (4Cs) Marketing Mix (4Ps) Selling/Buying Cycle (Goal) Promotion Message & Strategy Business Model


39

Stealing a “Country’s” Product

Emphasize the Difference, Don’t Hide It!


40

Advertisement Discussion

Product/Service Target Market Medium Value Proposition “Message” Buying Cycle


41

Product vs. Brand

Product Made at factory

Can be copied

Quickly becomes old

Brand Purchased by Customer

“Unique”

Timeless

Stephen King, WPP London


42

Homework: Dell Online Case Issues to Think About Company History and Choices Industry & Competition Products Customer/Market Segments Pricing Channel/Operations Competitive Advantage Case questions & decisions

NBC1 2008, (c) 2008 Jay A. Smith 1 Class 3 Sales & Marketing.

Documents

th c slide

service slide

sales marketing slide

tree slide

business success slide

business market segmentation

target customers

potential customers