Product & Brand Management

MKT 4806Product & Brand Management Session 1: Saturday 3 November 2007 Polboon Nuntamanop  Review Basic Marketing Ref. Kotler & Keller, Marketing Management, 12th Edition.   Introduction to Product Management Marketing Planning Ref. Lehman & Winer, Product Management, 4th Edition. 1-1 Review Marketing deals with identifying and meeting human and social needs profitably. Marketing is an organizational function and a set of process for creating communication and delivering values to customer sand for managing customer relationships in a way that benefits the organization and stake holders. ( American Marketing Association) 1-2 Review Marketing Management An art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer values. Source: Kotler & Keller, Marketing Management 12e 1-3 Key Concepts of Marketing          Markets and market segmentation Product VS Services Product Categories Products Portfolio Consumers Competition Brand / Brand Equity Marketing Mix Marketing Strategies 1-4 Marketing Mix     Product Price Place consumers Promotion Consumer Values Costs to consumers Convenience to Communication 1-5 Strategic Marketing Management Model Business GOAL Internal Resources Strengths / Weaknesses Brand Key Success Factors External Forces VISION & MISSION Business Objectives And strategies Opportunity/ Threats Market Key Success Factors Marketing Objectives & Strategies Marketing Operation Objectives and Strategies Marketing Mix Marketing Operation Action Plan Strategy Execution Crimson Consulting ©copyright 2005 1-6 Internal Factors   Organization structure Internal resources      Hardware: production facilities Software: R&D, know-how, proprietary People: Number of employee, competency, HR management. Financial: Policy, sources of fund, credits, investment policy, cash flows. Management: governance system, leadership, management style, management team, 1-7 External Factors         Market environment. Market potential Consumers ( who consumes end-product) Market’s distribution system. Competition Related government’s rules and regulations. Relevant economic factors International factors 1-8 1-9 Lehman & Winer, Product Management, 4th Edition Chapter 1: Introduction to Product Management. Chapter 2: Marketing Planning Chapter 3: Defining competitive set Chapter 4: Category Attractiveness Analysis Chapter 5: Competitor Analysis Chapter 6: Customer Analysis Chapter 7: Market Potential and Sales Forecasting. Chapter 8: Developing Product Strategy Chapter 9: New Products Chapter 10: Pricing Decision Chapter 11: Advertising Decision Chapter 12: Promotion 1-10 Chapter 1 Introduction to Product Management 1-11 A Product Manager’s Potential Interactions Suppliers Trade Suppliers Research and development Manufactur -ing and distribution Agency media department Company media department Media sales reps Media Advertising agency Promotion services Premium suppliers Premium screening Store testing Sampling Couponing Legal Product manager Packagin g Designers Researchers Fiscal Market research Research suppliers Publicity Sales Trade Purchasin g Suppliers 1-12 Product Management VS General Marketing Management Product Management Management Scope Single product or a product line Many tactical Short-term often annual or shorter 1-13 Marketing Broad Portfolio of products Many strategic Long-term Decisions Time Product-Focused Structure Head of company/division Corporate communications Manufacturing Marketing Finance Marketing Research Product management Support Manager of product A Manager of product B Manager of product C 1-14 Example: Product Development & Marketing Adobe Systems Marketing Organization Sales Corporate Communications Product Marketing - Specification - Positioning - Pricing - Spokesperson Internal & External - Promotions - Advertising - Product Strategy - Product Analysis - Anything Cross Functional - Keep communication flow going Marketing - Cross Product Programs - Road Shows - Seminars - Third Party promotions - Events - Creative Services Channel Merchandising - Channel Promotions - Channel Advertising - Coop Advertising Public Relations - Organize Press Tours - Press Communications - Editorial Opportunities Trade Shows - Trade Shows 1-15 Example: GM’s New Organizational Structure Ron Zarrella VP & group executive, North American Operations John Middlebrook VP & GM, vehicle brand marketing Division marketing general managers (6) Phil Guarascio VP & GM, advertising & corp. mktg. Roy Roberts VP & GM, field sales service & parts Regional general manager(s) John Middlebrook Support staff group directors William Lovejoy VP & GM, service parts operations Service parts organization Brand teams Brand services managers Regional support manager Regional divisional marketing manager Regional service manager Regional parts manager Marketing area managers Area sales manager Area service manager Area parts manager 1-16 Market-Focused Organization Head of the company/division Manufacturing Marketing Finance Corporate communications Manager, market A Manager, market B Manager, market C 1-17 Example: Regional Bell Operating Company Vice president, marketing Assistant vice president, consumer marketing Assistant vice president, business marketing Assistant vice president, interindustry marketing Product management Marketing planning and product development Carrier marketing Operations and sales Product management Operator services Customer billing Operations Revenue and market forecasting Directory products 1-18 Functionally-Focused Organization Head of the company/division Manufacturing Marketing Finance Corporate communications Product marketing Advertising Sales promotion Marketing research 1-19 Example : Marketing of Toy Manufacturer Vice president, marketing Marketing support Advertising and public relations Publications Consumer administration Merchandising 1-20 Restructuring the Adaptive Marketing Organization Chief Marketing Officer VP, Customer Management VP, Marketing Technology VP, Experience Design Director, Research Director, Cohort 1 Director, Cohort 2 Director, Creative Development Director, Multimedia Production Director, Marketing Asset Management Director, Customer Service Systems Director, Marketing Delivery Systems Director, Customer Database 1-21 Changes Affecting Product Management The Web  Data explosion  Increased emphasis of brands  Changes in the balance of market power  Increased importance of customer retention programs  Increased global competition  1-22 Chapter 2 Marketing Planing 1-23 Marketing Plan A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period. 1-24 Objectives of a Marketing Plan 1. Define the current business situation. 2. Define problems and opportunities facing the business. 3. Establish objectives. 4. Define the strategies and programs necessary to achieve the objectives. 5. Pinpoint responsibility for achieving product objectives. 6. Encourage careful and disciplined thinking. 7. Establish a customer/competitor orientation. 1-25 Frequent Mistakes in the Planning Process            The speed of the Process The Amount of Data Collected Who does the Planning? The Structure Length of the Plan Number of Courses of Action Considered Who Sees the Plan Not Using the Plan as a Sales Document Insufficient Senior Management Leadership Not Tying Compensation to Successful Planning Efforts Frequency of Planning 1-26 Marketing Planning Sequence Update historical data Collect current situation data Data analysis Develop objectives, strategies, programs Develop financial document s Negotiate final plan Measure progress toward objectives Audit 1-27 Marketing Plan Summary I. II. A. B. C. D. E. Executive summary Situation analysis Category/competitor definition Category analysis Company and competitor analysis Customer analysis Planning assumptions 1-28 Marketing Plan Summary (cont.) I. II. III. IV. V. VI. Objectives Product/brand strategy Supporting marketing programs Financial documents Monitors and controls Contingency plans 1-29