Beruflich Dokumente
Kultur Dokumente
EWMBA 206
Fall 2007
Professor Ganesh Iyer
Ganesh Iyer
Agenda
Introductions
What is Marketing?
» Marketing Concept
» A Framework for Marketing Analysis and Planning
Caselets.
Bombardier
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Some Perspective
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Some Perspective
A Historical Perspective
“In well-ordered states, storekeepers and salesmen are
commonly those who are weakest in bodily strength
and, therefore, of little use for any other purpose.” -
Plato
“I came here with a view that you start the day with customers, that
you start thinking about a company around its customers” - Lou
Gerstner, Chairman IBM.
“Why does the customer want to buy from me?” - Charles Schwab.
“Stop being a company with its face towards the CEO and ass
towards the customer” - Jack Welch, ex-CEO, G.E.
Reaction to TQM--Reengineering--Competing for Future.
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The Marketing Concept
Two Components
C: Customer Orientation
The Marketing concept is to make profits through creating and
keeping customers.
» “Connection (Emotional Identification)”
C: Competitive Advantage
The marketing concept is about satisfying the needs and wants
of consumers more effectively than competitors.
Ganesh Iyer
Caselet: New Coke
Cola Category Share of Soft Drinks
Almost tripling
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1970 1975 1981 1985
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Coke’s Declining Performance
25
20
15 Coke
Pepsi
10
0
1966 1975 1980 1984
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Competitive Comparisons
» Advertising
– Coke: $34.4 million (1975) to $211.5 million (1993)
– Pepsi: $25.3 million (1975) to $147.3 million (1993)
» Distribution
– Coke stronger in fountain. But Pepsi growing in
supermarkets.
» Pricing
– no differences
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Market Facts
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Market Facts
Pepsi had Diet Pepsi and Mountain Dew since the 60’s. Coke
had Sprite and Tab.
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US Soft Drink Industry
Coca Cola
Pepsi Cola
» Coke had » 1960s “Pepsi Generation”
nostalgic home
town image in » 1974 “Pepsi Challenge”
early 60’s. (based on taste test)
» “Real Thing”
response to Pepsi
Generation
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The Pepsi Challenge
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Testimonials
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Change to New Coke
Taste Tests
» blind taste tests
» “what if this were a new Coke taste?” test
» Direct test against branded and unbranded Pepsi
» But did not disclose that the product that they were testing would
replace the old coke completely.
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Change to New Coke
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Pepsi’s Response
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Pepsi’s Message
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Consumer Reactions
A Surprise
Coca Cola’s toll-free number was flooded with calls from angry and
deeply saddened consumers.
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Coke’s Retraction
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What can we learn from this?
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Corporate Shares
35
30
25
20 Coke
Pepsi
15
10
0
1980 1982 1984
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Total Cola Shares
30
25
20
Coke
15 Pepsi
10
0
1980 1982 1984
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How was Coke actually doing?
Diet Coke was the main reason for the decline in regular Coke
» Coke is lighter than Pepsi
» Pepsi is sweeter than Coke
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The Pepsi Challenge
What if Coke made the product change gradually and did not
announce the change?
» The Canadian new coke experience
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Connection…1984
“The simple fact is that all the time and money and skill poured
into consumer research on the new Coca-Cola could not
measure or reveal the deep and abiding emotional attachment
(connection) to original Coca-Cola felt by so many people." …
Don Keough, President Coca-Cola.
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Connection…2004
Neuromarketing evidence
(Neural Correlates of Behavioral Preference for Culturally Familiar Drinks, Neuron 2004)
Effect of Brand Knowledge on Brain Activation
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Connection
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Connection
Emotional Identification
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Caselet: Apple Computers
Identifying the competitor
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What can we learn from this?
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Key Takeaways
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Key Takeaways
Apple
Technically superior
» operating system
» the hardware/software interface
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Analysis Framework
Company Analysis
Competitor Customer
Analysis
Analysis
Marketing Strategy
Product
Price
Promotion
Place
Market
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Course Summary
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Course Summary
Performance Evaluation
» Class participation
» Cold calling protocol…(instructor can cold call)
» Make sure that you have your name cards displayed.
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Course Summary
Group assignment
Groups by next class.
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Administrative Details
Course Information
» Course pack available at: https://www.study.net/default.asp
» Course website:
http://groups.haas.berkeley.edu/marketing/COURSES/ewmba206_fall07.ht
ml
Contact Details
» Office Room F699, 510-643-4328
» email= giyer@haas.berkeley.edu
» Cell 925-788-1769
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Expectations
Please come to class on time and if you have leave early please
let me know.
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