MKTG 3032 Strategic Marketing & Marketing Plan 5 pages due in 10 hours

• Quarter 2 results and standings

• Assignment #2 Requirements

• Due in the FOL drop box before midnight on

Tuesday October 24, 2017

Strategic Marketing

MKTG3032 – Strategic Marketing

Q2 Results – Sales Revenue

Q2 Results – Net Income

Q2 Results – Return on Sales

Q2 Results – Forecasting Efficiency

Q2 Results – Overall Standings

Q2 Game-to-date – Overall Standings

Does the Business Consultant have any advice for your team?

What will you do with the data from Q2?

Marketing Research Decisions

Quarter 2

Report # of Teams

Sales Potential 1

Units Sold 6

Unit Price 7

Promotion 2

Consumer magazine ads 3

Trade Pub Ads 1

Ad Message 6

Sales Reps 0

Quality 5

Social Media 3

Features 3

No data purchased 2

Assignment #2 Overview

Individual Assignment # 2

Assignment 2 is due in the course FOL dropbox

before midnight on

Tuesday October 24, 2017

Include on your title page:

• your name

• your section # (1)

• your team #

• the product/region you analyzed

• Instructor Name – Perry Broome

• Each student will analyze the results for a unique

product and region

• If any two students on the same team submit the

same product/region, both students receive zero

Individual Assignment # 2

Region 1 Region 2 Region 3

Product 1 Carl Ralph

Product 2 Gary Sue

Your analysis will cover

Quarters 1, 2, 3 and 4

Everyone will receive some research from Quarter 4

Marketing Decisions Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 Team 8 Team 9

Team

10

Product 1 Region 1

Promotion 20000 36750 40000 24000 37000 41500 29000 42000 27500 31789

Ad Message Price Quality Benefits Benefits Price Service Price Quality Price Features

Price 18.45 19.01 19.97 18 19 18.79 19.25 20 17.99 18.99

Act Demand 32432 39876 34567 50034 23567 33333 24356 34521 32323 45654

Quality 0.34 1.12 0 0.25 0.5 0 2.1 0.45 0.65 0.2

Don’t purchase this research. It will

be provided to you by the Chairman

of the Board.

You will receive this research for

each region and both products.

Assignment # 2

What tactics have you used

and why?

Are you monitoring your results?

Is your research effective?

Are you well positioned?

Are you staffed appropriately?

Are you losing money?

Part 1 – Marketing Mix Tactics

Describe how you have positioned your company for all

elements of your marketing mix in both absolute and relative

terms (how does your team compare to your competition)

For example:

• How do your prices compare to the competition?

• What ad message have you used and why?

• How many sales reps have you hired/fired?

Answer all of the questions listed in the assignment

Part 1 – Summarize your marketing mix in a table:

Marketing

mix

Measure Example – P1R3 Competition – P1R3

Product Quality Goal to include some quality but below

average compared to competition

Added $1.50 in Q1

Added $0.65 in Q2

Added $0.22 in Q3

Added $0.30 in Q4

Q1

Range: $0 to $4.50

Average: $0.79

Q2 and Q3 No research

Q4

Range: $0 to $2.00

Average: $0.38

Features We are not intending to add features to

Product 1

$0 invested in Q1, Q2, Q3 and Q4

Q1: no teams had features

Q2: Team 3 and Team 12

had one feature each

Q3 and Q4: five teams had

features: four teams had

one and Team 3 had four

Price Price levels Goal to be competitive on price and

close to the lowest price:

Q1: $18.65

Q2: $18.29

Q3: $17.99

Q4: $18.19

Q1 and Q2: no research

Q3:

Range: $15.50 to $23.99

Average: $18.25

Q4:

Range: $16.75 to $22.05

Average: $18.03

Part 2 – Operations Planning

What methods do you use to forecast market demand in your region?

What was your market share in Quarter 4 in units?

your team’s unit sales for your product/region

total industry unit sales for your product/region

- Inventory carrying costs?

- Stock outs?

- Short term loans, emergency loans and interest?

Part 3 – Market research

Describe your use of market research so far:

Provide a table summarizing the reports you have

ordered for your product/region and include the costs

and your assessment of the usefulness of the research

Quarter Reports Cost $ Usefulness

Q1 Price

Units sold

Ad message

1000

900

1800

Useful - Showed we were above average in price

Useful – Showed we only had 5% market share

Not useful – no relationship between message and how many

units competitors sold

Q2 Price

Quality

Trade magazines

1000

3500

1000

Useful - Showed we were still above average in price

Not useful – we do not compete on quality

Useful – showed we under-spend compared to competition

Q3 Features

Demand estimate

3500

2000

Useful – showed few teams have features

Not useful – without units report no way to tell if demand is

going up or down

Q4 Features 3500 Useful – showed few teams have features

Part 3 – Market Research

The Chairman will supply free research for Q4

The research will be emailed to you via FOL within 24 hours

after Decision #4 has been processed and will include:

• units sold (actual demand)

• price

• quality

• sales promotion spending

• ad message

Marketing Decisions Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 Team 8 Team 9

Team

10

Product 1 Region 1

Promotion 20000 36750 40000 24000 37000 41500 29000 42000 27500 31789

Ad Message Price Quality Benefits Benefits Price Servic

e Price

Qualit

y Price

Feature

s

Price 18.45 19.01 19.97 18 19 18.79 19.25 20 17.99 18.99

Act Demand 32432 39876 34567 50034 23567 33333 24356 34521 32323 45654

Quality 0.34 1.12 0 0.25 0.5 0 2.1 0.45 0.65 0.2

Part 3 – Market research - continued

For the research sponsored by the Chairman of the

Board in Quarter 4, comment on any correlations you

observe between results (units sold, profits etc.) and

marketing tactics (ads, quality, promotion etc.) in your

region

Marketing Decisions Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 Team 8 Team 9

Team

10

Product 1 Region 1

Promotion 20000 36750 40000 24000 37000 41500 29000 42000 27500 31789

Ad Message Price Quality Benefits Benefits Price Servic

e Price

Qualit

y Price

Feature

s

Price 18.45 19.01 19.97 18 19 18.79 19.25 20 17.99 18.99

Act Demand 32432 39876 34567 50034 23567 33333 24356 34521 32323 45654

Quality 0.34 1.12 0 0.25 0.5 0 2.1 0.45 0.65 0.2

Part 3 – Market research - continued

Create a perceptual map showing how customers view

your company and each of your competitors in terms

of price(vertical axis) and quality (horizontal axis)

A perceptual map template is available on FOL

Co.1

Co.2

Co.3

Co.15 Co.5

Co.6

Co.7

Co.8

co.9

Co. 10

Co.11

15

15.5

16

16.5

17

17.5

18

18.5

19

19.5

20

20.5

21

21.5

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

P r ic

e

Quality

SAMPLE ONLY Appendix 4 P1/R1 Q4 Price/Quality Perceptual Map

1. What is the

significance

to your

strategy?

2. What do you

need to do

now based

on this

learning?

Part 3 – Market research - continued

For full marks…

Answer all the questions using the appropriate data

Part 4 - Management Controls

Units Sold per Sales Rep for

Quarters 1, 2, 3 and 4:

Unit sales for region

Number of salespeople in region

S&A Report

(see next page)

Units Sold per Sales Rep

Quarters 1, 2, 3 and 4:

Unit sales for region

Number of salespeople in region

(See previous slide)

Part 3 – Management Controls - continued

Part 4 - Management controls

Cont’d

Return on owners equity

= net income

owners equity

Calculate for Q1, Q2, Q3

and Q4

For your product/region in Quarter 4:

Calculate unit contribution (margin per unit) by subtracting your Total

Product Cost (see the Cost of Goods Sold Report) from the selling price.

Calculate your Break Even (selling costs divided by unit contribution) • Calculate selling costs by adding your Total Promotion cost to your Total

Sales Rep Cost from the S&A (Selling and Administration) Report for your

product/region

• What is your Break Even amount? (i.e. How many units did you have to sell for your margin to cover your selling costs? Show your calculations)

How many units of your product did you sell in your region in Quarter 4?

Was your product priced appropriately in your region? Why?

Be specific. Show calculations

Part 5 – Break Even Analysis

Part 5 – Break Even Analysis

For Q4, calculate:

• Unit contribution (selling price minus product cost (per

unit supplier, quality and feature costs minus process

improvement savings)

Selling price $19.50

Less Product cost 12.40

Unit contribution $ 7.10

Found in Q4 Cost of

Good Sold Report

For your product/region in Quarter 4:

Calculate your selling costs by adding

your Total Promotion cost to your

Total Sales Force Cost from the S&A

(Selling and Administration) Report for

your product/region.

Part 5 - Break Even Analysis (cont’d)

Q3 will be processed…

Q3 – Thursday October 12 at 10:00 p.m.

Q4 will be processed…

Q4 – Wednesday October 18 at 10:00 p.m.

Wednesday October 18 class

• Industry changes

• Marketing Plan requirements - introduction

Strategic Marketing

Q3 and Q4 - Maven Decisions

Source: Oakreesims.com

(http://oaktreesim.com/Maven/EnterGame.cgi?SessionID=OLNUTTRhXZIU&GameID=11561#)

Going into your marketing

planning process after

Quarter 4…

what do you need to know

about your competitors?