Management Decision Hierarchy

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Management Decision Hierarchy
Decision Markers
Decisions
Outcomes
Top Managers
Division Managers
Field Managers
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The greatest danger for most of us is not that
our aim is too high and we miss it, but that it
is too low and we reach it.
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Typical Organizational Goals Objectives
Goals
Objectives
Time Frame

• 1 year
• 1 year
• 2 years
• 1 year
• 1 year

• By 5 million
• By 5
• By 100 million
• To less than 1
• By 10

• Increase Profits
• Increase Percentage
• of market share
• Increase sales
• Reduce defective Parts
• Reduce Consumer
• Complaints

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JC Penny - Fox Designer Shirt
Background Market Research Research
Results Goals Objectives Advertising
Strategy Tactics Results

• Lacoste unprecedented success in the shirt
  market.
• Method - competitive mapping and consumers
  preferences.
• Notable differences of consumers demand
  elasticities between regular and designer shirts.
• People couldnt explain differences (in quality)
  once tags/labels were removed.
• To exploit the developing phenomenon in the
  market (1981) of designers shirts.
• Establish about 8 market share in the branded
  shirt market. Planning span - 18 months.
• Comparative advertising (price). An attempt to
  reach that segment of the market with a relative
  higher sensitivity to price.
• A full page ad in regional periodicals. Emphasize
  brand name - Fox Comparative price, and
  assortment of colors, all in a bold demonstration
  of the product.
• Campaign created on average of 6 market share. A
  higher than average success with men a lower
  than average with women A close to average with
  children.

Objectives were partly met
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The Role of Comparative Advertising
Comparative Advertising
Directly or Indirectly comparing a product
against a competitors Typically claiming that the
promoted product is superior in many purchase
considerations Vary in the explicitness of the
comparisons and in regard to whether the target
of comparison is named or referred to in general
terms In some countries comparative ads are
illegal Belgium, Hong Kong, and Korea
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Comparative Advertising

• Sunlight
• Vs. Cascade

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The Communication Approach
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The Communication Process
Noise
Noise
Source
Encoding
Feedback
Feedback
Noise
Noise
Media
Message
Response
Response
Decoding
Noise
Noise
Receiver
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The Nature of Signs

• Sign
• Something physical
• Represents or signifies something

• Perceptual field
• Total experiences of a lifetime