Benihana Case Study

Marketing Management Class Notes 1/16/13 Markets: * Consumer market—B2C * Business market—B2B * Global market (? ) * Not-for-profit market—must have higher revenues than cost to survive * ex: health-care: hospitals need 7% more revenues than expenses to survive * Government market Core Concepts: * needs, wants, and demands * segmentation, target markets, positioning * offerings and brands value and satisfaction * relationship marketing * marketing channels * supply chain * competition * marketing environment Marketing mix—4 Ps * Product—good, service, idea, experience, place, person, etc. * Price—above, at, or below market * Place—retail location, channel of distribution * Promotion—advertising, personal selling, sales promotion, PR/publicity Shifts in marketing management: in past: marketing does marketing; now: everyone does marketing * organized by product units; now: organizing by customer segments * using many suppliers; no w: using fewer suppliers who are partners * ex: Wal-Mart and Procter & Gamble pampers—no longer places orders for pampers; now P&G brand manager manages Wal-Mart shelf of pampers * emphasizing tangible assets; now emphasizing intangible assets * building brands through advertising; now building brand through performance and integrated communication * good experience=tell 5 other people; ad experience=tell 9 other people * now even more permanent with online ratings * shotgun (dispersed) v. rifle (accurate) * avoid shotgun (avoid developing product/service that would appeal to everybody) * relying on old markets; now uncovering new markets * focusing on profitable transactions; now customer lifetime value * major goals of increasing revenue and market share v. now: must be responsible for return on marketing investment (ROMI) * local; now glocal (local and global) * focus on shareholders; now focus on stakeholders What do marketers do? develop marketing strategies and plans * generate/collect marketing info (research) * connect w/ customers * develop market offerings * build brands * delivery and communicate value * create long-term growth * ex: ivory 1879 and still going New Marketing capabilities: * use of internet for info and sales * easily gather info about: * customers, prospects, markets, competitors * social media * facilitate and speed communication w/ customers * personal marketing (thru email) * mobile marketing for customers on the go * mass customization * bit of an oxi-moron * ex: Levi’s jeans made to size measurements use internet internally and for other than marketing Evolution of the Marketing Concept * Production Concept—production efficiency, low costs, mass dist. ; consumers want the most quality, performance, or innovative features (more, better, faster) * Stool made in cottage industry—individuals made them at home w/ tools on handindustrial revolution—factories, standards, conformity, production concept emerged * Selling Concept—consumers will buy only if the company aggressively promotes/sells these products * Too many stools produced and no one is buying themhow to sell them? must aggressively sell and advertise * Marketing Concept—focuses on needs/wants of target markets and delivering value better than competitors * Quit making stools that people don’t need or want; * must determine how many stools the customer wants first before making them * The Marketing Concept’s—Three Pillars: * Customer orientation * Integrated marketing effort** * Table 1. 1 on p. 23 * integrated w/ other departments b/c marketing interacts w/ customers * Emphasis on profitable sales (not all sales are worth pursuing) * Pillsbury Ex: 1. We make flour†¦how do we make the flour faster and better * 2. We sell flour†¦hired sales people and started advertising * 3. What do customers want that has flour in it—expanded product lines †¦Burger King— hamburger buns, pie shops, refrigerated dough products Ch. 2: Developing Marketing Strategies and Plans * Value—the totality of features and characteristics of a product or service compared to its costs * Determinant of Cust0mer Values: * Customer perceived value * total customer value * Image value * Personal value * services value * product value vs. total customer cost * Monetary cost * time cost * energy cost * psychic cost * in mind—instantly assessing value and weighing it against cost Creating value: * satisfy needs * more than one org * functions of marketing creates value Generic value chain—link in chain consists of: * Primary activities: inbound logistics, operations, out-bound logistics, marketing and sales, service * support activities: firm infrastructure, HR management, technology development, procurement (purchasing) * margin-includes profitability Ex: Levi Jeans Value-Delivery Network: Dupont fibersMilliken fabricsLevi’s apparelSears reta ilcustomer * each is a link in the value chain When value is not provided: * lost sale * lost customer—CLV (accounting for the number of years person would have been a customer) Competitive Advantage—something a co. has that no other co. has * achieved through: * 1. core competencies—source of comp. advantage, application in wide variety of markets, and difficult for competitors to imitate * 2. distinctive capabilities—excellence in broad business practices * involve multiple levels of people ex: ability to innovate, ability to understand your customer, understanding the market Marketing goal=competitive advantage * must be something significant to customers * important in a variety of markets * difficult to imitate Strategic planning: * Corp. Mission * â€Å"Marketing Myopia†Ã¢â‚¬â€see close but don’t see far away; * Railroads thought they were in the railroad business, had they realized they were in the transportation business they could have expanded line to auto or plane * What business are we in? * growth opportunities * growth matrix * SBU—Strategic Business Unit * Resources—S/W Assessment—O/T * goalsstrategies to achieve goalstactical plans to achieve strategies Good Mission Statement * ex’s in the book: Table 2. 5 * identify: * target customers and markets * principle services delivered * org. philosophy * desired self/public image * Mission statement—what the co. does; Vision statement—hope for future Goals and Objectives: * goals—umbrella; hierarchical (at different levels) * provide broad direction * objectives—SMART * Specific * Measurable * Actionable * Realistic * Time bound—for marketing plan, usually a year * for new product, maybe 6 months Porter’s Generic Strategies: * 1.Overall cost leadership—low cost provider; can make stuff at the lowest cost (will have higher margins and more choices) * 2. Differentiation—develop competitive advantages that are diff. from competition * Focus—segment; * niche market focus that has either overall cost leadership or differentiations Ansoff’s Product/Market Expansion Grid: | Existing products| New products| Existing markets| Market Penetration * advertising, lowering price, increasing sales personnel, * take existing pie of market share and try to get bigger piece of the pie | Product development| New markets| Market development * ex: co. hat made lawnmowers B2B (golf courses) decided they could sell those lawnmowers to consumers | Diversification | Boston Consulting Group’s Growth Share Matrix | Relatively high market share| Relatively low market share| High market growth rate| Stars| Question marks (aka problem children—don’t know how they are going to turn out)| Low market growth rate| Cash cows—products you’ve had for a relatively long time but they have slow growth Ex: Coke for Coca-Cola| Dogs| Implementatio n—plansEvaluation and Control: * Set objectives (to be measured) * measure performance against objectives * understand deviations—why didn’t you achieve what you set out to achieve * set new objectives Marketing Plan Parts: * Exec. Summary * Table of Contents * Situational Analysis: External Analysis * Situational Analysis: internal analysis * SWOT critical success factors * Goals/objectives * Strategy—4 Ps * Action programs * Financial implications * Controls Case Analysis—slides being sent via email