ImplementingStrategies:Marketing,Finance/Accounting,R&D,andMISIssuesChapterEightChapterObjectives1.Explainmarketsegmentationandproductpositioningasstrategyimplementationtools.2.Discussproceduresfordeterminingtheworthofabusiness.3.Explainwhyprojectedfinancialstatementanalysisisacentralstrategyimplementationtool.4.Explainhowtoevaluatetheattractivenessofdebtversusstockasasourceofcapitaltoimplementstrategies.8-2Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallChapterObjectives(cont.)5.Discussthenatureandroleofresearchanddevelopmentinstrategyimplementation.6.Explainhowmanagementinformationsystemscandeterminethesuccessofstrategy-implementationefforts.7.Explainbusinessanalyticsanddatamining.8-3Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallComprehensiveStrategic-ManagementModel8-4Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallCurrentMarketingIssues1.Howtomakeadvertisementsmoreinteractivetobemoreeffective2.HowtobesttakeadvantageofFacebookandTwitterconservationsaboutthecompanyandindustry3.Touseexclusivedealershipsormultiplechannelsofdistribution4.Touseheavy,light,ornoTVadvertisingversusonlineadvertising8-5Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallCurrentMarketingIssues5.Tolimit(ornot)theshareofbusinessdonewithasinglecustomer6.Tobeapriceleaderorapricefollower7.Toofferacompleteorlimitedwarranty8.Torewardsalespeoplebasedonstraightsalary,straightcommission,oracombinationsalary/commission8-6Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallCurrentMarketingIssuesFirmsshouldprovideincentivestoconsumerstosharetheirthoughts,opinions,andexperiencesonthecompanywebsiteThecompanywebsitemustnotbeallaboutthecompany—itmustbeallaboutthecustomertoo8-7Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallTheNewPrinciplesofMarketing8-8Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAdvertisingMediaInternetadvertisingisgrowingsorapidlythatmarketersaremoreandmoreallowedtocreatebigger,moreintrusiveadsthattakeupmorespaceonthewebpageWebsitesareallowinglengthieradstorunbeforeshortvideoclipsplayBlogsarecreatingmorecontentthatdoublesalsoasanad8-9Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallPurpose-BasedMarketingPurpose-BasedMarketingbestwaytosellinaweakeconomyisto“showcustomershowtheycanimprovetheirlives”withyourproductorserviceneedtobuildtrustandanemotionalconnectiontothecustomerinordertodifferentiateyourproductorservice8-10Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMarketSegmentationMarketSegmentationsubdividingofamarketintodistinctsubsetsofcustomersaccordingtoneedsandbuyinghabitswidelyusedinimplementingstrategies8-11Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMarketSegmentationStrategiessuchasmarketdevelopment,productdevelopment,marketpenetration,anddiversificationrequireincreasedsalesthroughnewmarketsandproductsMarketsegmentationallowsafirmtooperatewithlimitedresourcesbecausemassproduction,massdistribution,andmassadvertisingarenotrequired8-12Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallMarketSegmentationMarketsegmentationdecisionsdirectlyaffectmarketingmixvariables:product,place,promotion,andprice8-13Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallTheMarketingMixComponentVariables8-14Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallRetention-BasedSegmentationTag#1:Isthiscustomerathighriskofcancelingthecompany’sservice?Tag#2:Isthiscustomerworthretaining?Tag#3:Whatretentiontacticsshouldbeusedtoretainthiscustomer?8-15Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAlternativeBasesforMarketSegmentation8-16Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallDoestheInternetMakeMarketSegmentationEasier?Thesegmentsofpeoplewhommarketerswanttoreachonlinearemuchmorepreciselydefinedthanthesegmentsofpeoplereachedthroughtraditionalformsofmedia,suchastelevision,radio,andmagazinesPeopleinessencesegmentthemselvesbynatureofthewebsitesthatcomprisetheir“favoriteplaces,”andmanyofthesewebsitessellinformationregardingtheir“visitors”8-17Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallAlternativeBasesforMarketSegmentation8-18Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallProductPositioningProductpositioningentailsdevelopingschematicrepresentationsthatreflecthowyourproductsorservicescomparetocompetitors’ondimensionsmostimportanttosuccessintheindustry8-19Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallProductPositioningSteps1.Selectkeycriteriathateffectivelydifferentiateproductsorservicesintheindustry.2.Diagramatwo-dimensionalproduct-positioningmapwithspecifiedcriteriaoneachaxis.3.Plotmajorcompetitors’productsorservicesintheresultantfour-quadrantmatrix.8-20Copyright©2013PearsonEducation,Inc.publishingasPrenticeHallProductPositioningSteps4.Identifyareasinthepositioningmapwherethecompany’sproductsorservicescouldbemostcompetitiveinthegiventargetmarket.Lookforvacantareas(niches).5.Developamarketingplantopositionthecompany’sproductsorservicesappropr