Accounting

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Narration

Slide 1

Scene 1

[Ed, Samantha – Ed’s Office]

Ed and Samantha meet in the morning to discuss the next steps in the tablet PC launch.

MKT500_10_1_Samantha-1: Good morning, Ed. How are you doing today?

MKT500_10_1_Ed-1: Good morning, I’m great. I was just looking over the work we’ve done so far for this launch. Things are progressing quite nicely.

MKT500_10_1_Samantha-2: I can’t believe we’re already on the final step of creating the marketing plan. I’m really proud of the work we’ve done, and I’m excited to put it all together in a written marketing plan.

MKT500_10_1_Ed-2: Yes, it is an exciting process. You have been a tremendous help throughout this journey, so you should feel proud.

I spoke with Carl earlier. He said that now that we have met for the past ten weeks in and out of meetings he would like to see a recap of your marketing plan.

MKT500_10_1_Samantha-3: Yes, I agree, Ed. Putting everything together in a written plan is the ultimate goal of our efforts. I have some ideas for where to start that I learned from my Strayer classes.

See, a good marketing plan begins with an assessment of where things currently stand for Golds Reling. This is called the situation analysis, and is documented by the 5Cs. Marketers draw on those Cs to develop segments and choose segments to target, by using segmenting, targeting and positioning, which, as you know, is abbreviated, STP.

The STP section of the marketing plan usually involves summaries of marketing research. Marketing and financial goals follow, which stipulate the objectives the company wishes to achieve, as well as how success and ROI will be measured.

(Display SWOT graphic on screen)

MKT500_10_1_Ed-3: You’re right, Samantha. As you may recall from your classes at Strayer, the first step in building a marketing plan involves a corporate self-examination.

The company uses a SWOT analysis to determine its strengths. It also decides on its goals. I’m sure you’ll also recall that a SWOT analysis is a method that companies use to analyze the strengths, weaknesses, opportunities, and threats to create the foundation of a marketing strategy.

With the S and W, we’re characterizing the company: ‘What are our strengths and weaknesses?’ With the O and T, we’re characterizing the broader environment, such as the industry as a whole, suppliers, or government: ‘What are the opportunities and threats to our company?’ S and W are considerations internal to the organization, whereas O and T are external and beyond our control.

MKT500_10_1_Samantha-4: I do remember learning about SWOT analysis at Strayer University. However, I’ve never seen one actually implemented. Can you explain how we will apply the SWOT analysis to help develop our marketing strategy?

MKT500_10_1_Ed-4: Sure. There are four factors that we will consider when examining our strengths, weaknesses, opportunities, and threats.

Slide 2

Interaction

Click the tabs for more information on Golds Reling’s SWOT analysis.

Customer: As a part of gaining a better understanding of our current business, we will also try to understand our customers by collecting data on them. We will starts with studying secondary data to know the background trends. Later on, we will collect fresh data on our current customers, past customers, potential customers, our competitor’s customers, and so on.

Context: With regard to context, we will assess the macro-environmental issues we must attend to. Some common sample questions that we should pose in order to understand the business context include: what are we known for? Or what do we want to become? We will revisit these questions when we see changes in our environments or if we change our brand or target segments.

Collaborators: We should also study the relationship we have with our providers in the supply chain.

Competitors: By constructing and using a SWOT analysis, we will be better able to determine our strength relative to other providers in the market place.

MKT500_10_1_Ed-5: Click the tabs for more information on Golds Reling’s SWOT analysis.

MKT500_10_1_Ed-5A: As a part of gaining a better understanding of our current business, we will also try to understand our customers by collecting data on them. We will start with studying secondary data to know the background trends. Later on, we will collect fresh data on our current customers, past customers, potential customers, our competitor’s customers, and so on.

MKT500_10_1_Ed-5B: With regard to context, we will assess the macro-environmental issues we must attend to. Some common sample questions that we should pose in order to understand the business context include: ‘What are we known for?’ and ‘What do we want to become?’ We will revisit these questions when we see changes in our environments or if we change our brand or target segments.

MKT500_10_1_Ed-5C: We should also study the relationship we have with our providers in the supply chain.

MKT500_10_1_Ed-5D: By constructing and using a SWOT analysis, we will be better able to determine our strength relative to other providers in the market place.

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Scene 1, cont.

[Ed, Samantha – Ed’s Office]

MKT500_10_1_Samantha-5: I see. Thanks for that explanation, Ed. I know that our team has written marketing plans for many of our previous product launches. Do you think that Carl is looking for how we are going to grow Golds Reling’s business?

MKT500_10_1_Ed-6: Yes, I do, but we need to take a deeper look into the Golds Reling business model and growth initiatives first. Let’s show Carl the Ansoff Product-Market Growth Matrix.

As you review the figure, you can see that it shows all four possible product and market combinations.

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Interaction

Click the quadrants of the matrix for more information.

Market Penetration Strategy: In this scenario, marketers simply encourage their current customers to purchase from them more frequently. This strategy is low risk, but it might max out quickly.

Market Development Strategy: Marketers using this strategy do not offer new products but find a new use for their product which suits a new customer segment, or they plan to advertise through new outlets to reach different demographics.

Product Development Strategy: In this scenario, marketers introduce new products to their current customers. This approach is perceived to be a great way to really delight one’s customers and strengthen their loyalty.

Diversification Strategy. This is the most difficult and riskiest strategy in this framework. Marketers try to introduce new products to new customers.

MKT500_10_1_Ed-7A: Marketers simply encourage their current customers to purchase from them more frequently. This strategy is low risk, but it might max out quickly.

MKT500_10_1_Ed-7B: Marketers using this strategy do not offer new products, but find a new use for their product which suits a new customer segment, or they plan to advertise through new outlets to reach different demographics.

MKT500_10_1_Ed-7C: Marketers introduce new products to their current customers. This approach is perceived to be a great way to really delight one’s customers and strengthen their loyalty.

MKT500_10_1_Ed-7D: This is the most difficult and riskiest strategy in this framework. Marketers try to introduce new products to new customers.

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Scene 1, cont.

[Ed, Samantha – Ed’s Office]

MKT500_10_1_Samantha-6: This is excellent, Ed. Carl will see from the Ansoff Matrix that we are adopting the market development strategy for our new tablets, which certainly justifies our growth needs and why the new tablet computer fits in with Golds Reling’s existing product offerings.

MKT500_10_1_Ed-8: Yes. Also, an important assessment in strategic thinking is corporate identity with regard to Golds Reling’s philosophy toward the marketplace.

In addition to SWOT and the Ansoff Matrix, we need to decide whether Golds Reling shows tendencies toward either offensive or defensive actions in our marketing plan, which are not necessarily correlated with the size of an organization. In offensive business strategies, the company attempts to take the lead; however, in a defensive strategy, the company is typically a follower, and often lacks the skills, resources, and entrepreneurial spirit to be a leader in the industry.

For instance, a company with a large market share may have the resources to take the initiative and lead the other players in a new direction, which would be offensive action. However, small entrepreneurial companies frequently create something new in the marketplace that may elicit responses from other, bigger or older, competitors. Such responses would be considered defensive action.

The role that Golds Reling plays in the marketplace can change over time.

MKT500_10_1_Samantha-7: I remember learning the term “value-added” in my marketing classes at Strayer University. Is this what you are referring to as it relates to the dynamics of the marketplace?

MKT500_10_1_Ed-9: Yes! Value-added is a term used in marketing today to measure a company’s worth and competiveness in the eyes of the customer.

Furthermore, it is not clear that being first-to-market is always a good thing. For example, launching really new products like our tablet can be risky - adoption can be slow, and the pioneering company can take quite a hit. In comparison, the so-called “quick-follower companies” can learn from the leader’s mistakes, and can benefit from customers learning how the new offering might be valuable in their lives.

MKT500_10_1_Samantha-8: So what I think you are saying is that Golds Reling wants to be a leader for some of its brands in their respective markets, and more of a follower for its other brands, but overall we must continue to focus on value-added.

Whether our orientation is on the offense or defense may vary across our brand portfolio—mature, “cash cow” brands should be treated carefully, whereas more risk can be taken with newer ventures, like our tablet. This distinction depends on the products’ life cycles and the stage of maturity of their industries. Lastly, there are dynamics coinciding with the 5Cs to take into consideration.

MKT500_10_1_Ed-10: Perfect. You’re totally right.

MKT500_10_1_Samantha-9: Very interesting, Ed. I think we also need to understand the competitive forces that may affect our tablet launch. Additionally, I think we need to present to Carl a re-examination of strategic goals that we discussed in our previous meetings. Our goals may need to be adjusted as a result of changes in the external elements of SWOT, or when observing the effects of the 5Cs on perceived opportunities and threats.

MKT500_10_1_Ed-11: I’m glad you mentioned this, Samantha. I have a video that we can watch that explains the five competitive forces that shape strategy.

Slide 6

The Five Competitive Forces That Shape Strategy

http://youtu.be/mYF2_FBCvXw

Slide 7

Scene 1, cont.

[Ed, Samantha – Ed’s Office]

MKT500_10_1_Samantha-10: Thanks, Ed. From what I understood from this video and from my classes at Strayer University, a company can dominate its market in one of three ways.

First, it can strive for cost leadership, producing goods and services more efficiently than the competition. To deliver this, the company should have resources such as easy access to plentiful, good raw materials; cheaper labor sources; better information or other technologies; and so on.

Second, a company might take the approach of differentiation. This strategy is an attempt to distinguish one’s products as unique in the industry. Differentiation may be fostered through excellent quality in products and customer service, distinctive design, exclusivity, or value-added bundled into the core purchase, among other things.

The final approach is called focused. Whereas the cost leadership and differentiation approaches are said to be broad, the focused strategy is narrower. Companies using this strategy often serve niche markets, and customers in that segment can be very satisfied, very loyal, and rather price-insensitive.

MKT500_10_1_Ed-12: Right. The strategy is to win and retain profitable customers. In writing our plan for Carl, as the “do” or action part of the plan, Golds Reling must know itself, its environmental context, its competitors, its collaborators, and its customers - which are the 5Cs - before knowing where it wants to go next or deciding there is a problem to solve or opportunity to exploit.

At the end of the day, it is important for Golds Reling to keep an eye on our goals. We need to be smart about launching our new tablet. We can do this either by being consistent with our current business or in using this new action to ultimately move purposely through the positioning matrix.

MKT500_10_1_Samantha-11: Ed, you are correct. In the end, the marketing plan is a document that should not only remind the marketers about the corporate goals but should also be a working document. It is important to remember that all of marketing, both strategy and planning, is iterative.

In particular, Golds Reling must look for internal consistency throughout the plan—it is critical for good branding and good marketing that the whole of the plan be synchronous.

MKT500_10_1_Ed-13: As you already mentioned, marketing plans are always works in progress. While they are intended to keep everyone on track, they are also not rigid. Thus, as situations change, Golds Reling must be able to modify the marketing plan.

MKT500_10_1_Samantha-12: I think we are almost ready to meet with Carl. What do you think?

MKT500_10_1_Ed-14: Yes, I agree, but there is one more thing that we need to add to the plan. That is a marketing dashboard.

MKT500_10_1_Samantha-13: Why a marketing dashboard?

MKT500_10_1_Ed-15: This will please Carl, who’s a “numbers” guy, and additionally, a marketing dashboard will provide a visual image of the successes or failures of the new Tablet launch. Marketing dashboards are poised to aid marketers in the planning and execution of marketing initiatives, as well as with the evaluation of those campaigns to tie success or failure to overall financial performance.

MKT500_10_1_Samantha-14: That makes a lot of sense, and I can see why we should include one. Let’s finalize this information for Carl.

MKT500_10_1_Ed-16: Good idea. But before we do, I think we should briefly recap the most important concepts we’ve covered today.

Slide 8

Check Your Understanding

1. In the spirit of a SWOT analysis, a company’s strengths are defined somewhat relative to_______.

a) Behavior of non-buyers

b) Other providers in the marketplace

c) Customer satisfaction levels

d) Competitiors’ misfortunes

Incorrect answer: A, SWOT is a strategic marketing planning tool. It is not used to determine consumer behavior.

Correct answer: B, SWOT compares a company’s strengths against the strengths of their competitors.

Incorrect answer: C, SWOT is not a customer satisfaction measurement tool.

Incorrect answer: D, SWOT does not measure competitors’ misfortunes. This would occur through competitve intelligence.

2. Which strategy in the Ansoff Product-Market Growth Matrix combines current markets and current products?

a) market development

b) product development

c) market penetration

d) diversification

Incorrect answer: A, Market development does not fit into the matrix quadrants.

Incorrect answer: B, Product development does not fit into the correct matrix quadrant.

Correct answer: C, market penetration. Looking at the graphic, one can easily determine that market penetration fits into the quadrant combining current markets and current products.

Incorrect answer: D, Diversification does not fit into the matrix quadrants.

The 5 C’s

In consideration of the 5Cs, if we are assessing the macro-environmental issues we must attend to, such as legal, technical, and social changes, then we are considering our ______.

a) context

b) company

c) customers

d) collaborators

Correct answer: A, context,

Macro-environmental issues such as legal, technical, or social changes are considerations that occur within context.

Incorrect answer: B, In the 5 C’s, company is concerned with defining who the company is, what they are known for and good at, and what they want to become.

Incorrect answer: C, Macro-environmental issues are not a part of the customers as described by the definition of the 5C’s found in the textbook.

Incorrect answer: D, Macro-environmental issues are not a part of the collaborators as described by the definition of the 5C’s found in the textbook.

Slide 9

Scene 2

[Ed, Samantha, Carl – Conference Room]

Ed, Samantha, and Carl meet in the conference room to discuss the final written marketing plan and revised strategies of the product launch.

Display dashboard image

MKT500_10_2_Carl-1: Good afternoon, Ed and Samantha. I saw you both looking very busy in Ed’s office earlier. I’m looking forward to hearing the information that you two have put together for the marketing plan for our new tablets.

MKT500_10_2_Samantha-1: Yes, Ed and I have been very busy. We have a lot of great ideas and revised strategies for our new tablet launch.

MKT500_10_2_Carl-2: I’m glad to hear that. Go on, please.

MKT500_10_2_Samantha-2: Marketing strategies can be successful or unsuccessful. However, before even thinking about making any changes, we feel that Golds Reling needs to conduct an honest self-assessment—what does our brand portfolio look like and what are our strengths and weaknesses as measured by our newly created marketing dashboard? Therefore, we have proposed an extensive SWOT analysis as part of our plan.

In addition, we have considered both what and how we would like to change, should the analysis conclude we need to do so: target segments, and if necessary, the 4P’s of product, price, place, promotion. Thus, we have created an Ansoff Product / Market Matrix to guide Golds Reling’s strategic initiatives.

In conclusion, both Ed and I feel that with these strategies in place, Golds Reling is poised to increase profitability, in addition to achieving the goals we’ve discussed in previous meetings. To review, those goals include the following:

One - Penetrate twenty percent of existing market segments for tablet computers within the first twelve months.

Two - Reach a target segment of one million potential consumers within the first six months of launch.

Three - Cross-sell current Golds Reling customers with the use of database marketing in international markets.

Four - Obtain an initial markup of twenty percent on new tablet computer sales; and

Five - Offer twelve month warranties for all new tablets sold.

MKT500_10_2_Carl-3: Excellent. I like what I’m hearing. Your methods seem very reasonable and effective for marketing our new tablets. I’m excited to take a closer look at the written plan. Very nice work, both of you.

Samantha, I would like to personally congratulate you on all the work you have done on this product launch. Over the past several weeks, your input has been integral in developing a solid marketing plan that I have no doubts will take Golds Reling through a successful tablet launch.

As a reflection of all of your hard work, I would like to offer you full-time employment at Golds Reling as a member of my marketing team. You don’t have to give me an answer today, but I sincerely hope that you will consider coming on board. No matter what decision you make, I wish you great success in your career.

Slide 10

Scene 3

[Ed, Samantha – Hallway]

MKT500_10_3_Samantha-1: What a day! I’m so excited about Carl’s offer of employment. It appears that he was really impressed with my work. I’m eager to tell all of my classmates at Strayer University about my experiences here!

MKT500_10_3_Ed-1: Your hard work has really paid off, Samantha. I’m so happy for you. As Carl mentioned, your work has been impressive, and I, too, hope that you will give some serious thought to taking Carl’s offer.

In the meantime, remember to complete the e-Activity and the threaded discussion covering marketing plans for the new product launch. Take care!