Beruflich Dokumente
Kultur Dokumente
Current Events
Recap
Understanding own business and market from customers point of view
Shape Organization to Focus on Customers POV Value Proposition Points-of-Differentiation and Points-of-Parity
Recap
FACTOR 2
1.25 1 0.75 VW RABBIT NISSAN SENTRA HONDA ACCORD
IS1
Economy
0.5 0.25 0 -0.25 -0.5 -0.75 -1 -1.25 -1 0 1 2 FORD MUSTANG THUNDERBIRD OLDSMOBILE
BMW
PORSCHE
FACTOR 1
Performance/Quality
Recap
Observed Behavior
- Purchase Data - Trackers of Behavior
Quantitative
- Conjoint Analysis - Experiments - Questionnaires
Qualitative
- Focus Groups - Interviews - Observational / Ethnographic
Recap
Initiator Influencer Decider Buyer User
Recap
Retailers
Induce to carry new items, higher levels of inventory, encourage off-season buying, encourage stocking of related items, offset competitive promotions, building brand loyalty of retailers, gaining entry into new retail outlets
Sales Force
Encourage support of new products, encourage more prospecting, stimulate off-season sales
Price promotions create both lagged and lead effects, consistent with consumers both stockpiling and anticipating future promotions
There is a threshold effect, discounts lower than 10% do not lead to additional sales
Article: If Brands are Built Over Years, Why are They Managed Over Quarters? Known short-term bounce in revenues
Price promotions elasticity is -3.63 Abundant short-term data Wall Street pressures on quarter to quarter Leads to bigger category pie
Traditional Advertising PR / Sponsorships Internet Advertising Direct to Consumer Social Media Price Promotions Pricing New Product Developments Sales Force Distribution Overall
4.71
3.10 3.84 3.63
4.25
3.75 4.18 3.20
8.96
6.85 8.02 6.83
End of Aisle Display (0=No; 1=Yes) Heinz Hunts Delmonte Other (1) (2) (3) (4)
0 0 . . . 0 0 1 . . . 0 0 0 . . . 0 0 0 . . . 0
1 2 . . . 1
We can calculate market share for each brand Heinz 1319/2000=65.95% Hunts 335/2000=16.75% DelMonte 210/2000=10.5% Others 136/2000=6.8%
Q1: If Hunts price decreased by 10% and special display was used, how much increase in market share would be expected? Q2: If by 20% and special display was used, ? Q3: From which brands would this expected increase in market share come from?
Pt ( j )
exp(U
k
exp(U jt )
kt
Pt ( j )
exp(U
k
exp(U jt )
kt
)
Sum of brands (k=4)
To estimate model, one needs to select a base brand (b/c utility is a relative concept)
Utility of base brand is set at 0 This is equivalent to subtracting the base brands marketing mix variables from those of all brands
SAS Results
Price (1)
Display (2)
Coefficients T-value
Using estimated coefficients, we can predict consumers brand choice decisions when they are exposed to different marketing activities
Price (1)
Display (2)
Coefficients T-value
Household id
Choice Brand
End of Aisle Display (0=No; 1=Yes) Heinz Hunts Delmonte Other (1) (2) (3) (4)
0 0 . . . 0 0 1 . . . 0 0 0 . . . 0 0 0 . . . 0
1 2 . . . 1
The purchase probability for entire observation = expected market shares Heinz 1151/2000 = 58% Hunts 839/2000 = 42% DelMonte 10/2000 = 1% Other 0/2000 = 0%
Next Class
TOPIC:
Marketing Mix Strategies IX: Pricing
DUE:
Think of a product you have and like
READ:
1. KK: Read Chapter 14 2. CR: Retail Frenzy: Prices on the Web Change Hourly