1st Problem: Observation outside= Competition is really fierce

-it occupies the minds of managers

-companies have the hard time in strategizing bec they normally jump into solution
bec they dont have time to analyze
Marketing Designing Strategy Plans
-what well learn here is how to design strategy / plans
2nd Problem: companies dont have time to understand. They jump right away to
designing
-What happens before we design? Understanding for who (whose need) ,
what(solution of product), when , how much, how to deliver, etc.
-companies are more focused on execution rather than the quality of the plan
- SUCCESS = f(good strategy, good execution)
*success is a function of good strategy and good execution
Understanding = Problem Space
Designing Strategy/ Plans = Solution Space
Role of Data Analytics
-looking for gaps in the market
-supports the understanding (problem space)
-translate to more sound and realistic
-we dont guess (cause if we guess, theres a risk of no ROI)
Business Risk and Finance risk
-important in company valuation
Business risk-driven by the variability of revenue, variability of operating profit
(FC,VC)
Financial risk-driven by the level of debt
3rd Problem: Companies cant get things done
-may be good in conceptualizing and understanding but not necessarily being able
to lay out a strategy to get it done
-premium skill today is how to get things done
How do you define customer value?
-Customer Value = Benefits Cost
-Customer Value=Benefit /Cost
-Difference between perceived value and willingness to pay
-all 3 are focused on one event : purchase event
- function of desire and price
-BEFORE they become my customer- DURING AFTER they become my customer
(value is very much before ; ex. Freemium business model)

-to do the customer valuation well, we also have to speak the voice of customer; a
lot of ttimes companies speak the voice of shareholder
-marketing must be the translator for the two voices(shareholder and customer)
=whats good for the customer must be good for the shareholder(we need to align
them)
Productivity =output/input
ROI= income/investment

External Factors and Customer Behaviors

-External Factors that affect strategy: how do these affect the customer behavior
Ex. A typohoon hit, how does it affect customer behavior;
-urbanization is a trend as external factor (ex. Density of metro manila is getting
higher
Problem 4: Magnitude and Rate of Change is really fast because of the technology
-scalability and magnitude is much bigger
-threat of being disrupted by small businesses is huge for the long time players
Marketing strategy VS Marketing plan
-Value proposition and PTM = strategy (long-term)
-4Ps =plan (shorter term)
Market VS customer(funnel anaylysis)
-market =big end of the marketing funnel
-customer = potential customer (not existing customer)