BU121- Feb 5 2013
Justify your target, and be sure it makes sense- something a group wants and you can somehow be
Be at the marketing session at BA102 Monday 5:30
Finding a distinct position for your product in the customer’s mind
One that communicates that the product provides a unique benefit
The objective is to position the product as close to the ideal as possible
Consumer Approach- identifying what the customer is going to get
o We are providing the benefit, the competition is not (Vista vs Mac ad)
Be truthful or a lawsuit may arise (slander)
No formula- projections based on research and logic = educated guess you can defend
Market potential DOES NOT EQUAL sales forecast
o Forecast depends on plan- sales force, distribution, operations
Sales force and HR worked out, but shortage of workers = discerns investors
Distribution- be realistic of how many units you can sell/produce
Have a plan that can back up a forecast
o Market potential not just households (ie solar lawn mowers)
o Household data: realize that not everyone lives in a house, is willing to mow a lawn,
cares about the benefits
o Still doesn’t equal sales forecast
Ready to buy? (lawn mowers/yr/capita- target buy in same proportion? Do they
NEED a new one? Time to adopt/switching costs?) Only a small % of population
lives to own “new” goods
o Be able to research numbers for market sizes
o What you can do given capacity and marketing plan
o What can I produce given physical capacity and what can I realistically sell?
# of stores selling mowers, #they will carry, #each must sell to meet target-
Don’t aim to stock your product on just one retailer (i.e. Wal-Mart)
How many stores can we get to carry it?
o What must be done to break even?
Sensitivity analysis and contingency plan? o What if things do not go as planned?
o Assumptions to base sensitivity on
Similar product launch
o Milestones- points that increase valuation of business- when does the investor start to
Top Down vs Bottom Up Forecast (COPY THE SLIDE)
“we have projected a 1% share of the market….yet our sales forecast is still huge!”
Top down: how are the investments used? In terms of building installation facilities….
o Shows that forecasts much match; rather than coming up with a conservative number
you should pair it down Key Chapter Concepts- Creating marketing strategies
Classifying consumer products vs classifying business products
Stages of the life cycle- resembles a bell curve- could take 8 months or 80 years- you need to
know how to move through that
o Indicators of stage
o Industry/product-your INDUSTRY has a life cycle as well!
o Altering the speed of the cycle
Planned obsolescence- it’s about slowing it down, not speeding it up!
Counterintuitive, but you want REPEAT customers
To speed one product through to get you to replace with
another…clothing styles, cars, sporting goods, etc
Sometimes obsolescence is not planned- hybrid cars, BluRay, Xbox360
How do you survive intense price competition in the peak? It dictates your
strategy. Be able t