Innovation

1. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
The Innovators' Survival Guide:
Marketing Edition
• Useful information, tools, advice,
buzzwords and examples to help you
be successful!
• You can get there from here....
Michael Brandt
it's marketing! VP of Marketing and Planning
WHITE PASS & YUKON ROUTE
entrepreneur
en·tre·pre·neur (ŏn'trə-prə-nûr', -nʊr')
n.
A person who organizes, operates, and
assumes the risk for a business venture.
"someone who perceives an opportunity and creates an organization to pursue it."
innovate
in·no·vate (ĭn'ə-vāt')
New Products
To begin or introduce (something new) for
New Production Methods
or as if for the first time.
New Markets
New Forms of Organization
& Distribution
Thesaurus: entrepreneur (noun)
One that creates, founds, or originates:
architect, author, creator, father, founder, inventor, maker, originator, parent.
originator,
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2. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
The Innovators' Survival Guide:
Marketing Edition
AGENDA
• Welcome &
Introductions
• Setting Objectives for
the Planning Session
• MARKETING 101
• Open Forum
A Fishing Story
• The American investment banker was at the pier of a small coastal
Mexican village when a small boat with just one fisherman docked.
Inside the small boat were several large yellow fin tuna. The American
complimented the Mexican on the quality of his fish and asked how
long it took to catch them.
• The Mexican replied, only a little while. The American then asked
why didn't he stay out longer and catch more fish? The Mexican said
he had enough to support his family's immediate needs.
• The American then asked, "but what do you do with the rest of your
time?"
• The Mexican fisherman said, "I sleep late, fish a little, play with my
children, take siesta with my wife, Maria, stroll into the village each
evening where I sip wine and play guitar with my amigos, I have a full
and busy life."
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3. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
A Fishing Story -- continued
• The American scoffed, "I am a Harvard MBA and could help you.
You should spend more time fishing and with the proceeds, buy a
bigger boat with the proceeds from the bigger boat you could buy
several boats, eventually you would have a fleet of fishing boats.
Instead of selling your catch to a middleman you would sell directly to
the processor, eventually opening your own cannery. You would
control the product, processing and distribution. You would need to
leave this small coastal fishing village and move to Mexico City, then
LA and eventually NYC where you will run your expanding
enterprise."
• The Mexican fisherman asked, "But, how long will this all take?" To
which the American replied, "15-20 years." "But what then?"
• The American laughed and said that's the best part. "When the time is
right you would announce an IPO and sell your company stock to the
public and become very rich, you would make millions."
• "Millions.. Then what?"
A Fishing Story -- conclusion
• The American said, "Then you would retire. Move to a small coastal
fishing village where you would sleep late, fish a little, play with your
kids, take siesta with your wife, stroll to the village in the evenings
where you could sip wine and play your guitar with your amigos."
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4. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
What is Marketing?
• the process of
• planning and executing
• the conception, pricing, promotion and distribution
• of ideas, goods and services
• to create exchanges
• that satisfy individual and organizational objectives.
“satisfying customers’ needs systematically and at a profit”
The Marketing Starting Point
c es Ec
or
iv ef on
om
e tit ic
mp for
c
Co
PR
es
T
UC
OM
OD
OT
Reg
PR
IO
es
Target Market
ulat
forc
N
ory
PR
al
Soci
E
forc
AC
I CE
PL
es
Technological forces
Environmental forces
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5. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
The Strategic Marketing Process:
Actions and Information
Planning Phase
Implementation Control
Step 1 Step 2 Step 3 Phase Phase
Situation (SWOT) Market-product Marketing program • Obtain • Compare
analysis focus and goal • Develop the resources results with
• Identify industry setting program's marketing • Design plans to identify
trends • Set market and mix marketing deviations
Action
• Analyze product goals • Develop the budget, organization • Correct
competitors • Select target by estimating • Develop negative
• Assess own markets revenues, expenses, schedules deviations;
company • Find points of and profits • Execute exploit positive
• Research difference marketing ones
customers • Position the product Plans program Results
• Tracking reports
• Determine trend in • Market potential • Characteristics and • Memos measuring
past and current By industry timing of: assigning results of the
Information
revenues: By segment Product actions responsibilities marketing
For industry and • Market-product Price actions for actions and actions
competitors in grids, with ranked Promotion actions deadlines; • Deviation
total and by targets Place actions Gantt charts reports
segment • Product positioning • Projected marketing • Organizational comparing
• Project future that stresses key expenses charts and job actual results
revenues, features, • Detailed plans to descriptions with plans
expenses and advantages, execute the • Action memos
profits: benefits marketing program to try to correct
For own product problems and
in total and by exploit
segment opportunities
Corrective actions Corrective actions
The Strategic Marketing Process..
• The Planning Phase
– Situation (SWOT) – Market-Product Focus
Analysis and Goal Setting
• Market Segmentation
– Market-Product
• Selecting the Target
Strategies Market
• Market Penetration
– increasing market share
• Defining Competitive
• Market Development Advantage
– developing new markets
• Marketing Program
• Product Development
– developing new products
• Develop the Marketing
Mix (the 4 Ps)
• Diversification
– developing new products • Developing the Budget
for new markets
5

6. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
..The Strategic Marketing Process
• The Implementation • The Control Phase
Phase – Comparing Results
– Obtaining Resources with Plans to Identify
– Designing the Deviations
Marketing – Acting on Deviations
Organization
– Developing Schedules
– Executing the Program
• Marketing Strategy
• Marketing Tactics
Key Organizational Buying Criteria
Quality
Specifications Delivery
Price
Schedules
Technical Organizational Past
Capability Buying Criteria Performance
Warranty/ Production
Claim Policies Facilities/Capacity
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7. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
Why Consumers Buy Online
Convenience Cost Choice
Customization Communication Control
Five Product & Promotion Strategies
for Global Marketing
Same Product Adapt Product Create New Product
Product Product
Same Extension Adaptation
Promotion Strategy Strategy Product
Invention
Communication Strategy
Dual
Adapt adaptation Adaptation
Promotion strategy Strategy
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8. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
THE MARKETING MIX
Marketing
Marketing
Elements
Elements
Product
Product Price
Price Promotion
Promotion Place
Place
Features
Features List price
List price Advertising
Advertising Outlets
Outlets
Brand name
Brand name Discounts
Discounts Personal selling
Personal selling Channels
Channels
Packaging
Packaging Allowances
Allowances Sales promotion
Sales promotion Coverage
Coverage
Service
Service Credit items
Credit items Publicity
Publicity Transportation
Transportation
Warranty
Warranty Payment period
Payment period Stock level
Stock level
Cohesive marketing mix
Promotion
Promotion
Place
Place
Product
Price
The Promotional Mix
• Advertising • Coupons
• Personal Selling • Deals
• Premiums
• Public Relations
• Contests
• Sales Promotion • Sweepstakes
• Direct Marketing • Samples
• Point of Purchase
Displays
• Rebates
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9. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
How stages of the product life cycle relate to a firm’s
firm’
marketing objectives and marketing mix actions
Stage of the product life cycle
Sales revenue Introduction Growth Maturity Decline
or profit
Total industry
sales revenue
+ Total industry profit
0
–
Marketing
Marketing Gain
Gain Stress
Stress Maintain
Maintain Harvesting,
Harvesting,
objective
objective Awareness
Awareness differentiation brand loyalty
differentiation brand loyalty deletion
deletion
Competition
Competition None
None Growing
Growing Many
Many Reduced
Reduced
Product One More versions Full
Full Best sellers
Product One More versions product line
product line Best sellers
Skimming or
Skimming or Gain share, deal Defend share,
Price
Price penetration
penetration Gain share, deal profit share,
Defend
profit
Stay profitable
Stay profitable
Stress
Stress Reminder Minimal
Promotion
Promotion Inform, educate
Inform, educate competitive
competitive Reminder Minimal
differences oriented
oriented promotion
promotion
differences
Place
Place Limited More outlets Maximum
Maximum Fewer outlets
(distribution)
(distribution) Limited More outlets outlets
outlets Fewer outlets
Importance of Promotional Elements
during the Consumer’s Purchase Decision
High
Personal selling
Importance of promotional tool
Sales promotion
Direct Marketing
Public rela
tions
Advertising
Low
Prepurchase Purchase Postpurchase
Stage of consumer’s purchase decision
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10. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
Promotional Tools used over the
Product Life Cycle of Purina
Puppy Chow Growth Maturity
Stage of Decline
product
life
cycle
Introduction
Promotional To inform To persuade To remind
objective
• Publicity in • Personal selling • Reminder • Little
veterinary to intermediaries advertising money
magazines • Advertising to • Sales promotion in spent on
• Advertising differentiate form of discounts promotion
Promotional • Salesforce calling Puppy Chow and coupons
activity • on intermediaries attributes from • Limited personal
• Sales promotion those of selling
in form of competing • Direct mail
free samples brands reminders
Steps in Setting Price
Step 1 Identify pricing constraints and objectives APPROACHES
• Demand
• Cost
Step 2 Estimate demand and revenue • Profit
• Competition
Step 3 Determine cost, volume, and profit relationships
Step 4 Select an approximate price level
Step 5 Set list or quoted price
Step 6 Make special adjustments to list or quoted price
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11. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
Break-Even Analysis Chart
Total revenue or total cost
Total revenue
Profit Total cost
⎫
(fixed and
variable cost)
⎬ Variable cost
Loss ⎭ Fixed cost
Quantity
Functions Performed by Independent
Wholesaler Types
MERCHANT WHOLESALERS
FULL SERVICE LIMITED SERVICE AGENTS AND BROKERS
GENERAL SPECIALTY CASH MANUFAC-
FUNCTIONS MERCHAN- MERCHAN- RACK AND DROP TRUCK TURER'S SELLING
PERFORMED DISE DISE JOBBERS CARRY SHIPPERS JOBBERS AGENTS AGENTS BROKERS
TRANSACTIONAL
FUNCTIONS
Buying
Sales calls on
customers
Risk taking
(taking title to
products)
LOGISTICAL
FUNCTIONS
Creates product
assortments
Stores products
(maintains
inventory)
Sorts products
Transports
products
FACILITATING
FUNCTIONS
Provides financing
(credit)
Provides market
information and
research
Grading
Key: , Yes; , Sometimes; , No.
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12. The Innovators' Survival Guide:
Marketing Edition
By Michael Brandt
Balancing Total Logistics Costs
and Customer Service Factors
Communication
Transportation Materials handling
costs and warehousing Dependability
costs Time
Order
Inventory processing
costs costs
Convenience
Stockout
costs
Total logistics cost factors Customer service factors
Michael’s Favorite Axioms
• “What gets measured gets managed”
• “If you’ve got to do “A” and “B” to get an
outcome and you’ve got a 90% chance at each
“A” an “B”, you’ve got an 81% chance of the
outcome.”
• “If you fail to plan, you plan to fail!”
• “Adaptation to change is the key to survival.”
• “It’s about the Customer!”
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