1. Creativity in Marketing Environmental Analysis Lecture 2 Lars Torsten Eriksson len@hig.se larse@hawaii.edu

2. What is Creativity? What is Marketing? What shall we do during the course?

3. CREATIVITY CRITERIA NOVELTY MEANINGFUL

4. MARKET INTERACTION ORGANIZATION Our Course Focus MARKET VIEW RELATIONSHIP VIEW RESOURCE BASED VIEW Point of Departure Examples and Output Creative Management Processes Lectures, literature Assignment presentationsTeam work

5. SCHEDULE July 3Introduction July 5Environmental Opportunities July 6Market Relationships July 7Marketing Strategy July 10Lateral Marketing July 11Creative Processes July 12Creating Offerings July 13Creating Brands July 17Creating Price Models July 18Creating Logistic Solutions July 19Literature test and Case presentation July 20Assessing 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

6. GRADING CRITERIA REFER USE OF RELEVANT FACTS RELATE USE OF RELEVANT CONCEPTS AND MODELS REFLECT ABILITY TO SEE ALTERNATIVE SOLUTIONS AND PERSPECTIVES RECOMMEND ABILITY TO SUGGEST NEW AND MEANINGFUL SOLUTIONS WITH AN ANALYSIS OF ALTERNATIVE CONSEQUENCES

7. THE MIO MODEL The Market Concept View Lars Torsten Eriksson - Marknadsorientera ditt företag! MARKET INTERACTION ORGANIZATION Situation Analysis Strategies Action Programs Present Situation

8. MIO MODEL APPROACH OPPORTYNITY ANALYSIS LT MARKET INTERACTION ORGANIZATION ?

9. Change is slower than we think –

10. THE INDUSTRY LIFECYKEL Lars Torsten Eriksson – Matrix & Mind! E-mail

11. 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

12. 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

13. EXTERNAL ANALYSIS The PEST Factors P OLITICS E CONOMY SWOT S OCIAL T ECHNOLOGY P OLITICS E CONOMY SWOT S OCIAL T ECHNOLOGY Lars Torsten Eriksson – Matrix & Mind!

14. POLITICAL CHANGES LT

15. ECONOMIC REGIONS EU NAFTA CACM ASEAN APEC LAFTA ECOWAS SADC MERCOSUR LT

16. MATERIALISMIDEALISM COLLECTIVISM INDIVIDUALISM LT Social Changes:

17. TECHNOLOGY CHANGE CELL PHONE PENETRATION

18. LT GLOBALIZATION COMPETENCE DRIVEN MARKET ECONOMY INDIVIDUALISMDIGITAL ICT SOCIETAL CHANGES

19. INFOCOM CHANGES LANGUAGE WRITTEN BOOKS COMMUNICATION TELEGRAPH PHONE RADIO TV CELL PHONE INTERNET 250 000 5000 500100 TODAY

20. PEST-ANALYSIS 19501960197019801990 THE GOLDEN DAYS THE STRONG SOCIETY STAGFLATION THE ICT SOCIETY THE NEW ECONOMY

21. ICT-ANALYSIS 19501960197019801990 COMPUTER INVENTION MAIN FRAMES MINI COMPUTERS PC-COMPUTERS PALMS 2 G 3 G CELLPHONES

22. PEST-ANALYSIS 19701980199020002010 NEW WORLD LEADERS INCREASE OF DEMOCRATIES APPLEAMAZON MICROSOFT DELL NETSCAPE GENERATION X GENERATION Y THE INTERNET GEN MINI PC COMPUTERS LAP TOPS PALMS COMPUTER CELL PHONE 2 G 3 G

23. CONTEXT: WHY IS OUR TURNOVER DECREASING? VOLUME DOWN WE LOSE MARKET SHARE TOTAL MARKET DECREASES DECREASE IN NEW DEMAND DECREASED REPLACEMENTS DISTRIBUTION GAP OFFERING GAP PROMOTION GAP

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

26. What is the problem?

27. What is the Problem?

28. What is the Conclusion?

29. So What?

30. DECISIONS – How? MAXIMAL DECISIONS SATISFYING DECISIONS DELIBERATE DECISIONS EMERGING DECISIONS

31. SWOT a Straight Way On Tuning up your business or a S ignificant W aste of T ime?

32. SWOT EXTERNAL OPPORTUNITIES AND THREATS INTERNAL STRENGTHS AND WEAKNESSES

33. 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.

35. 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

37. 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

39. 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

41. EXECUTE DISCUSS IN GROUPS COMPUTER PROGRAM FORM PROJECT TEAMS TO INVESTIGATE

42. COMPARE OT SW WO WT SO ST

43. 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

44. Change is always slower than we think – but the consequences will be more profound than we first expected

45. IF YOU THINK KNOWLEDGE IS EXPENSIVE - TRY IGNORANCE !

46. Keep surfing - But first a break ! Let’s rest our wits for a while