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not as if you are merely following a check list (they don’t pay MBAs to follow a list, they pay them to think). Eventually, you will internalize these frameworks and learn to use them naturally as you think. Now you are ready to be a consultant.. . . May the Force Be With You!BIG RED CASE BOOK JOHNSON SCHOOL CONSULTING CLUBPage 6169。 1999 The Johnson School Consulting ClubFOUR P39。S OF MARKETING: Product, Place, Promotion, PriceThis framework is suitable for marketing implementation cases. It is not usually appropriate for beginning the analysis, but it can be very helpful, when you discuss implementation to make sure that you cover all of the issues.Product? Must fit within positioning decision and market segmentation (. high end, low end。 consumer, industry)? Differentiated good vs. modity? Features and capabilities? Reliability, quality, brand name? Packaging, size? Service, warrantiesPlacement Distribution? Channel (decision based on product specifics, level of control desired and margins desired)? Coverage, availability? Inventory? TransportationPromotion AdvertisingBuying process1. Consumer awareness for the product2. Interest for the product3. Trial4. Repurchase5. LoyaltySales method: Pull (generate consumer interest to purchase) or Push (generate merchant interest to sell)5 categories of promotional efforts:? Advertising: Medium, reach (share of target market reached) and frequency (number of times reached).? Personal Selling: When direct contact with buyer is needed.? Sales Promotion: Incentives to consumer, sales force and channel members.Consumer incentives: coupons, refunds, samples, premiums, contests.Trading force incentives: Sales contest, Point of purchase displays, spiffs (payments to dealers), trade shows, instore demonstrations.? Public Relations and Publicity.? Direct sales.Price? What strategy? MC=MR? skim (high price, make profits now)? Perate (low price. Gain market share)?? Seek volume or profits? Establish barriers to entryBIG RED CASE BOOK JOHNSON SCHOOL CONSULTING CLUBPage 7169。 1999 The Johnson School Consulting Club? Perceived value, costplusmargin pricing?? How does price relate to the market, size, product lifecycle, petition.? Economic incentives to channel (missions, margin).BIG RED CASE BOOK JOHNSON SCHOOL CONSULTING CLUBPage 8169。 1999 The Johnson School Consulting ClubTHREE C39。s: CUSTOMER COMPETITION COMPANY This simple framework can be helpful for marketing cases as a simple way to begin looking into a pany39。s position in the market. The first three C’s rarely get to all of the issues, but they do provide a broad framework to get the analysis started. As you practice cases, begin to develop a series of potential questions related to each C that will help you to drill down further towards the root causes of the problem at hand.CUSTOMEREconomic value to the customerIndividual? Who is the customer?? What is the unmet need?? Which segment are we/should we target?? Are they price sensitive?? Perceptions? Loyalty? Volume? Switching costs? Profitability of customer? Preference? Purchase Behavior? UsageMarket? Size? Growth? Segmentation? Shares? Maturity? TrendsProduct? Price? Differentiation? Life Cycle? Technology? SubstitutesCOMPETITIONIndustry analysis (5 forces)? Size, Number of petitors, Market share? What are strengths/weaknesses?? How many are there and how are they concentrated?? Competitor’s response? Current strategy. Strategic value of product and mitment to product? Corporate goals? Capabilities? Economies of scale/scope ? Cost structure? Experience curve? ResourcesFinancialChannelsOrganizationIntangibles (brand loyalty, culture)? Market structureRelative product positioningSubstituteCOMPANY ANALYSISEconomics? Costs? Profitability? Capacity to develop product? Capacity to produce product? Breakeven analysis? Experience curve? Financials? Channels? Organization/structureBIG RED CASE BOOK JOHNSON SCHOOL CONSULTING CLUBPage 9169。 1999 The Johnson School Consulting Club? IntangiblesFit? Strategy and vision? Strengths/weaknesses? Culture? Resources? Brand equity? Core petencies ? Where in the valuechain do we add value?BIG RED CASE BOOK JOHNSON SCHOOL CONSULTING CLUBPage 10169。 1999 The Johnson School Consulting ClubCOSTREVENUE AND PROFABILITY ANALYSISThis basic framework can be used if a pany is having poor profitability because its revenues are too low or its costs are too high. If it appears to be more of a revenue problem then it could be that it is selling too little or not getting enough per unit sold. If it is in fact a problem with the number of units sold, then you can analyze why the pany is selling fewer products. Keep in mind that a firm may have multiple revenue streams. Apply revenue side of analysis to each stream. . a newspaper has revenues from circulation and advertising.There are 3 ways for a pany to increase profit: (Profit = Rev. – Cost)1. Increase revenue by increasing unit price2. Increase revenue by increasing sales volume3. Decrease costsIncrease unit price? Does the firm have market power?? Consider demand elasticity? Is the product differentiated?? Higher prices of substitutes? Superior customer service.Increase sales volume? Increase market share? Promotion? Increase growth? Improve technology? Find more efficient channels? Sell new products to current customers ? Sell products to new customers Decrease costsUnderstand cost structure of firm and try to reduce major costs first.Cost reduction techniques:? Improve utilization of equipment (increase volumes)? Outsource manufacturing? Consolidate purchasing? Relocate to lower cost areas? Partner with distribution panies, . Federal Expre