Creativity in MarketingEnvironmental Analysis

Lecture 2

Lars Torsten Erikssonlen@hig.se

larse@hawaii.edu

What is Creativity?What is Marketing?

What shall we do during the course?

CREATIVITY CRITERIA

• NOVELTY

• MEANINGFUL

MARKETINTERACTION ORGANIZATION

Our Course Focus

MA

RK

ET

VIE

W

RELATIONSHIP VIEW

RESOURCE BASED VIEW

Point of Departure Examples and Output Creative Management Processes

Lectures, literature Assignment presentations Team work

SCHEDULE July 3 Introduction July 5 Environmental

Opportunities July 6 Market

Relationships July 7 Marketing Strategy July 10 Lateral Marketing July 11 Creative

Processes July 12 Creating

Offerings July 13 Creating Brands July 17 Creating Price Models July 18 Creating Logistic

Solutions July 19 Literature test and

Case presentation July 20 Assessing Creative

Solutions and course review

MAJOR ASSIGNMENTS/EXAMS

Class Participation and presentations 75 % Literature test 25 %

100%

ATTENDANCE Regular attendance is

necessary. Not all material covered in the course is in the textbook. You must be available to work with your team members for group assignments.

W. 1

W. 2

GRADING CRITERIA REFER USE OF RELEVANT FACTS

RELATE USE OF RELEVANT CONCEPTS AND MODELS

REFLECT ABILITY TO SEE ALTERNATIVESOLUTIONS AND PERSPECTIVES

RECOMMEND ABILITY TO SUGGEST NEW AND MEANINGFUL SOLUTIONS WITH

AN ANALYSIS OF ALTERNATIVECONSEQUENCES

THE THE MMIIOO MODEL MODELThe Market Concept ViewThe Market Concept View

Lars Torsten Eriksson - Marknadsorientera ditt företag!

MARKET INTERACTION ORGANIZATION

Situation Analysis

Strategies

Action Programs

Present Situation

MIO MODEL APPROACH

OPPORTYNITY

ANALYSIS

LT

MARKET INTERACTION ORGANIZATION

?

Change is slower than we think –

THE INDUSTRY LIFECYKEL

Lars Torsten Eriksson – Matrix & Mind!

E-mail

OPPORTUNITY ANALYSIS

SOME PEOPLE: MAKES THINGS HAPPEN – THEY BUILD

RAILROADS PARTICIPATES WHEN THINGS

HAPPENS – THEY RIDE THE TRAIN WATCHES OTHERS PERFORM – THEY

WATCH THE TRAIN PASS BY WONDER IF THERE ARE ANY NEW

TRAINS RUNNING – THEY JUST MISSED IT

Lars Torsten Eriksson - Matrix & Mind

Analysis of the Future

WHAT THREATS AND OPPORTUNITIES ARE WE FACING?

OUR PRESENT POSITION IN THE INDUSTRY LIFE CYCLE?

WHICH STRONG AND WEAK SIDES DO WE HAVE?

HOW CAN WE DEVELOP OUR BUSINESS FOR THE FUTURE?lte

EXTERNAL ANALYSISThe PEST Factors

POLITICS ECONOMY

SWOT

SOCIAL TECHNOLOGY

POLITICS ECONOMY

SWOT

SOCIAL TECHNOLOGY

Lars Torsten Eriksson – Matrix & Mind!

POLITICAL CHANGES

LT

ECONOMICREGIONS

EUNAFTA

CACM ASEANAPECLAFTA

ECOWAS

SADCMERCOSUR

LT

MATERIALISM IDEALISM

COLLECTIVISM

INDIVIDUALISM

LT

Social Changes:

TECHNOLOGY CHANGECELL PHONE PENETRATION

LT

GLOBALIZATION COMPETENCE DRIVEN MARKET ECONOMY

INDIVIDUALISM DIGITAL ICT

SOCIETAL CHANGES

INFOCOM CHANGES

LANGUAGE WRITTEN BOOKS COMMUNICATION TELEGRAPH

PHONERADIOTVCELL PHONEINTERNET

250 000 5000 500 100TODAY

PEST-ANALYSIS

1950 1960 1970 1980 1990

THE GOLDEN DAYS

THE STRONG SOCIETY

STAGFLATION

THE ICT SOCIETY

THE NEWECONOMY

ICT-ANALYSIS

1950 1960 1970 1980 1990

COMPUTER INVENTION

MAIN FRAMES

MINI COMPUTERS

PC-COMPUTERSPALMS2 G 3 G

CELLPHONES

PEST-ANALYSIS

1970 1980 1990 2000 2010

NEW WORLD LEADERSINCREASE OF DEMOCRATIES

APPLE AMAZONMICROSOFT DELL NETSCAPE

GENERATION X GENERATION Y THE INTERNET GEN

MINI PC COMPUTERS LAP TOPS PALMSCOMPUTER

CELL PHONE 2 G 3 G

CONTEXT:WHY IS OUR TURNOVER

DECREASING?

VOLUMEDOWN

WE LOSEMARKETSHARE

TOTALMARKETDECREASES

DECREASE IN NEW DEMAND

DECREASED REPLACEMENTS

DISTRIBUTION GAP

OFFERING GAP

PROMOTION GAP

Market Research

How do we find out more about the Opportunities and Threats to improve our Marketing Decisions?

What is the problem?

What is the Problem?

What is the Conclusion?

So What?

DECISIONS – How?

MAXIMAL DECISIONS

SATISFYING DECISIONS

DELIBERATE DECISIONS

EMERGING DECISIONS

SWOT

a Straight Way On Tuning up your businessor

a Significant Waste of Time?

SWOT EXTERNAL OPPORTUNITIES AND

THREATS

INTERNAL STRENGTHS AND WEAKNESSES

STRENGTHS your specialist marketing expertise. a new, innovative product or service location of your business quality processes and procedures any other aspect of your business that

adds value to your product or service.

WEAKNESSES lack of marketing expertise undifferentiated products and

service (i.e. in relation to your competitors)

location of your business poor quality goods or services damaged reputation

OPPORTUNITIES a developing market such as the

Internet. mergers, joint ventures or strategic

alliances moving into new market segments that

offer improved profits a market vacated by an ineffective

competitor CHANGE

THREATS a new competitor in your home

market price wars with competitors a competitor has a new, innovative

product or service competitors have superior access to

channels of distribution taxation is introduced on your

product or service

EXECUTE DISCUSS IN

GROUPS

COMPUTER PROGRAM

FORM PROJECT TEAMS TO INVESTIGATE

COMPARE OT SW

WO WT

SO ST

Strengths-Powerful and prestigious brand

portfolio-World renowned-Powerful distribution capabilities-New product launches-Moët-Hennessy - Wines and

spirits

Weaknesses-Selective Retailing division

continued poor performance-Higher exposure to US Dollar

than its peers-Weak sales performance

Opportunities-A change in investor’s perception-Expansion into new countries-Product diversification-Advertising impact

Threats-Champagne production-Price deflation-Economic cycle-Imitators

LVMH SWOT Analysis

Change is always slower than we think –but the consequenceswill be more profound than we first expected

IF YOU THINK KNOWLEDGE IS

EXPENSIVE- TRY

IGNORANCE !

Keep surfing- But first a break !Let’s rest our wits

for a while