B2B Marketing Day 1

1. Prof. Marco Protano, 5 day course: April 23-April 27th
2. Learn to covert facts into insights.
1. determine facts by using 5-Whys technique (Ref. Sakichi Toyoda)
2. insights are "wows"
3. implications come after insights. answers the question "so what?"
4. "what are the implications for insights on our business?"
5. within 90 days at PG you need to learn how to write an effective one page memo
3. B/S
1. Liquidity
2. Leverage: Flexibility in financing
4. Earnings Statement
1. Profitability: sustainable?
1. gross: sales - COGS
2. operating
3. net
2. Coverage Ratios
5. Cash Flow Statement:
1. sources and uses
6. "Know more about competitors than they do about themselves" 
7. "you reap what you sow"
8. Introductions
9. Course Overview. The following cases will be covered
1. Ensr-Intl
2. Aqualisa
3. Centra
4. Guidant
5. HP
6. Kevlar
7. Kone
8. Novo
10. Team Allocation
11. Each team works on 2 cases and submits one presentation and one memo
12. Present on one case in class
13. Submit memo on the other
14. Today's Cases: Office Tiger, Royal Corp., Tetra-Pak
15. 8 C's
1. Category: Goods or services that satisfy a specify a need
1. In order from big to small: Industry, Category, Segment, sub-segment
2. Example: Beverage Industry, Alcoholic Category, Clear Spirits Segments
3. Example: Wine segments: Merlot, Cabernet sauvignon
2. Competition: anyone who "wants mind or wallet share" (ref: Marco Protano)
1. could be within the segment, category or industry
2. could be none of these. Joesph Schumpeter 1959 "what fuels an ecosystem most is innovation" "creative destruction"
3. creative destruction is a category for GE's business plans
4. Wayne laboratories and typewriters
3. Company: What are our core competencies?
1. What are Apple's core competencies?
1. Design: innovative
2. Marketing: started own retailing
1. Apple realizes that maximum technology performance
4. Customer: defines value
5. Consumer: uses product
6. Centers of Influence: don't buy, don't use, but have influence on those that do
1. opinion centers
2. power centers: only respect other power centers
7. Collaborators: partner organizations helping with buying or selling
8. Content: Pestle
16. Demand: where was it, where is it, where is it going?
17. Porter's 5 Forces, in some ways a risk assessment tool. Risk are ranked high, medium or low (Ref. Michael Porter). Determine how to mitigate each risks.
1. Bargaining Power of Suppliers Buyers
2. Threat of Substitutes, new entrants
3. Competitive Rivalry intensity
18. "If your staff screws up, you get fired first."
19. Chinese businessman (working for Nokia/Siemens) on Nokia: "we are going to buy Nokia back someday"
20. Outline for In Class Case Analysis:  (No deviations on Executive Summary)
21. What is the problem?
22. What is the opportunity?
23. MECE, Decision Tree with NPVs at the end of each branch
24. Pick an alternative and describe "why?"
25. 4 sentences in an executive summary. Less is more. Maximum impact for the words used.
26. 1st Sentence "The Strategic problem is ----"
1. state the most critical 8C and its implication (sentence 3)
2. justify with numbers and qualify recommendation (sentence 4)
27. 2nd Sentence "The Strategic opportunity is ----"
1. state only the strategic alternatives
28. Situational Analysis Section
29. Alternatives
30. Recommendation (some firms put this first)
31. Marketing Definition according to Prof. Protano
32. Create communicate and deliver value to customers in a timely manner.
33. Create, keep and manage customer relationships in ways that benefit the organization and its stakeholders.
34. Relative Price (on vertical)
35. Perceived Performance (on horizontal)
1. perception is an individual's reality (what the marketplace thinks it is)
2. manage perceptions
3. master of persuasion
36. Product Benefits (Printing Machine Example)
1. machine up-time (40)  (Company rating 8) (Competitor Ratings 7,5,6) (Rel. Advantage 26.7)
2. print speed (30) (9) (8,5,5) (20)
3. image quality (20) (7) (7,7,6) (0)
4. ease of use (10) (4) (6,5,6) (10)
37. Sum: 37, add 100, 137
38. Service Benefits (Printing Machine Example)
1. repair time (60) (rel advantage -20)
2. response to problems (30) 10
3. service quality (10) 0
39. Brand Benefits (our score=123)
40. Product Components:
1. purchase price
2. service and repair
3. toner
4. paper
41. Graph Customer Benefits (score ie 137) on horizontal vs cost of purchase on vertical
1. below line y=x lies Better Value
2. above line y=x lies Worse value
42. Ikea Kitchen Improvement (Example)
1. research showed that the kitchen was the least improved in the house
2. this was because of cost
3. cost was because of custom design required
4. How can we fuel demand?
5. Conjoint analysis 
1. show two pictures (A or B)of kitchens at a given price
2. repeat 30 times varying certain parameters
3. modern/traditional
4. material quality lower/modern kitchen
5. 45,000 Euros to 8,000 Euros (Price sensitive)
43. Marketing research firm Mintel
44. Buffet: "HQ are monuments to stupidity"
45. Develop and update marketing plans
46. Peter Drucker: "The Only purpose of business is to create and keep a customer"
1. "the aim of marketing is to make selling superfluous"
2. "two basic functions: marketing and innovation"
47. Chain of demand
1. derived demand: key industries pull along other industries
2. automotive suppliers geographically concentrated 
48. Purchasing Roles:
1. initiators
2. users
3. influencers
4. deciders
5. approvers
6. buyers
7. gatekeepers