ch02.ppt

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 2-1

DEVELOPING SUCCESSFUL MARKETING

AND CORPORATE STRATEGIES

CHAPTER


• Levels in Organizations and How Marketing Links to Them

Corporate Level

Strategic Business Unit (SBU)

Functional Level

Business Unit Level

ORGANIZATIONS AND THEIRLEVELS OF STRATEGY

Department


• Strategy Issues in Organizations

The Business

The Mission (Mission Statement/Vision)

Organizational Culture

• Stakeholders

• Organizational Culture



• Strategy Issues in Organizations

Goals or Objectives

• Profit

• Sales

• Market Share

• Quality

• Customer Satisfaction

• Employee Welfare

• Social Responsibility



Concept Check

2. What is the meaning of an organization’s mission?

A: Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.


Concept Check

3. How do an organization’s goals relate to its mission?

A: Goals or objectives measure how well the organization’s mission is being accomplished.


SETTING STRATEGIC DIRECTIONS

Competencies

• A Look Around: Where Are We Now?

Customers

• Competitive Advantage

Competitors



• Growth Strategies: Where Do We Want to Go?

Business Portfolio Analysis (BCG)

• Relative Market Share

• Market Growth Rate

Stars

Cash Cows

Dogs

Question Marks or Problem Children


FIGURE 2-2FIGURE 2-2 Boston Consulting Group portfolio analysis for Kodak, as it might appear in 2006

Kodak self-service kiosk

Kodak film sales: US,Canada, & W. Europe

Kodak digitalphoto printer

Kodak digitalcamera



• Growth Strategies: Where Do We Want to Go?

Market-Product Analysis

• Market Penetration

• Market Development

• Product Development

• Diversification


Concept Check

1. What are competencies and why are they important?

A: Competencies are an organization’s special capabilities, including skills, technologies, and resources that distinguish it from other organizations, which if exploited, can lead to the organization’s success.


Concept Check

2. What is business portfolio analysis?

A: Business portfolio analysis studies a firm’s business units as though they were a collection of separate investments.


Concept Check

3. What are the four market-product strategies?

A: (1) market penetration; (2) market development; (3) product development; and (4) diversification.


THE STRATEGIC MARKETING PROCESS

Strategic Marketing Process

• How do we allocate our resources to get wherewe want to go?

• How do we convert our plans to actions?

• How do our results compare with our plans,and do deviations require new plans?

Marketing Plan


FIGURE 2-4FIGURE 2-4 The strategic marketing process


• Strategic Marketing Process:The Planning Phase

Step 1: Situation (SWOT) Analysis

• Situation Analysis

• SWOT Analysis

Opportunities

Strengths

Threats

Weaknesses



FIGURE 2-5FIGURE 2-5 Ben & Jerry’s: a SWOT analysis to get it growing again



Step 2: Market-Product Focus and Goal Setting

• Market Segmentation

• Set Marketing and Product Goals

• Select Target Markets

• Find Points of Difference

• Position the Product




Step 3: Marketing Program

• Product Strategy

• Price Strategy

• Promotion Strategy

• Place (Distribution) Strategy



FIGURE 2-6FIGURE 2-6 Elements of the marketing mix that comprise a cohesive marketing program


Concept Check

1. What is the difference between a strength and an opportunity in a SWOT analysis?

A: Both are positive factors for the organization, but a strength is an internal factor whereas an opportunity is an external one.


Concept Check

2. What is market segmentation?

A: Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.


Concept Check

3. What are points of difference and why are they important?

A: Points of difference are those characteristics of a product that make it superior to competitive substitutes. They are the single most important factor in the success or failure of a new product.


• Strategic Marketing Process:The Implementation Phase

Obtaining Resources

Designing the Marketing Organization

Developing Schedules



• Strategic Marketing Process:The Control Phase

Comparing Results With Plans to IdentifyDeviations

Acting on Deviations

• Planning Gap

• Exploiting a Positive Deviation

• Correcting a Negative Deviation



Concept Check

2. How do the objectives set for a marketing program in the planning phase relate to the control phase of the strategic marketing process?

A: The planning phase objectives are used as the benchmarks to which the actual performance results are compared in the control phase.


Sample Résumé


Sample Cover Letter


Profit

Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses are subtracted from its total sales.

Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses are subtracted from its total sales.


Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.

Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.

Mission


Organizational culture is a set of values, ideas, and attitudes that is learned and shared among the members of an organization.

Organizational culture is a set of values, ideas, and attitudes that is learned and shared among the members of an organization.

Organizational Culture


Goals or objectives convert the mission into targeted levels of performance to be achieved, often by a specific time.

Goals or objectives convert the mission into targeted levels of performance to be achieved, often by a specific time.

Goals or Objectives


Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Market Share


The strategic marketing process is the approach whereby an organization allocates its marketing mix resources to reach its target markets.

The strategic marketing process is the approach whereby an organization allocates its marketing mix resources to reach its target markets.

Strategic Marketing Process


A marketing plan is a road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.

A marketing plan is a road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.

Marketing Plan


Situation analysis involves taking stock of where a firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.

Situation analysis involves taking stock of where a firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.

Situation Analysis


SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

SWOT Analysis


Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Market Segmentation


Points of difference are those characteristics of a product that make it superior to competitive substitutes.

Points of difference are those characteristics of a product that make it superior to competitive substitutes.

Points of Difference


A marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.

A marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.

Marketing Strategy


Marketing tactics are detailedday-to-day operational decisions essential to the overall success of marketing strategies.

Marketing tactics are detailedday-to-day operational decisions essential to the overall success of marketing strategies.

Marketing Tactics

ch02.ppt

Documents

marketing organization

marketing links

successful marketing

marketing mix

marketing plan

marketing action

marketproduct strategies

cohesive marketing program