Strategic market management chapter 16

• Determinants of strategic options Strategic Analysis Outputs Strategy Identification, Selection, Strategy Identification, Selection,... • Who are the existing and potential competitor

From Silos to Synergy—

Harnessing the Organization

Chapter Fifteen

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Product Silos Country Silos

The Silo World

lack clarity & linkage

Silo-spanning offerings & programs

are missed or mishandled

Marketing management competence

External Analysis

Strategy

Internal Analysis

• What are the lines of authority and communication?

• What are the roles of task forces, committees,

organizations, or similar mechanisms?

• How are budgets set?

• What is the nature of the planning system?

• What are the key measures used to evaluate

performance?

• How does the accounting system work?

• How do product and information flow?

• What is their depth and quality?

• What are the employees’ expectations?

• What are their attitudes toward the firm and their jobs?

• Are there shared values that are visible and accepted?

• What are these shared values and how are they

communicated?

• What are the norms of behavior?

• What are the significant symbols and symbolic activities?

• What is the dominant management style?

• How is conflict resolved?

Brand consistency & linkage

Resource allocation

Marketing competenceCommunication & cooperation

The CMO—On Getting Traction

• Get the CEO on Board

• Get the right people

• Determinants of strategic options

Strategic Analysis Outputs Strategy Identification, Selection,

Strategy Identification, Selection,

• Who are the major segments?

• What are their motivations and unmet needs?

• Who are the existing and potential competitors?

• What strategic groups can be identified?

• What are their sales, share, and profits?

• What are the growth trends?

• What are their strengths, weaknesses, and strategies?

• What are the forces reducing profitability in the market,

entry and exist barriers, growth projections, coststructures, and profitability prospects?

• What are the alternative distribution channels

and their relative strengths?

• What industry trends are significant to strategy?

• What are the current and future key success factors?

Strategy Development:

A Discussion Agenda

• What environmental threats, opportunities,

and trends exist?

• What are the major strategic uncertainties

and information need areas?

• What scenarios can be conceived?

• What are our costs, strategy, performance, points of

differentiation, strengths, weaknesses, strategic problems

and culture?

• What is our existing business portfolio?

• What has been our level of investment in our various

product markets?

• What assets and competencies will provide the basis for

an SCA? How can they be developed and maintained?

How can they be leveraged?

• What assets and competencies? How can they be

developed, maintained, leveraged?

• What value proposition?

• What functional strategies?

• Who are the major segments?

• What are their motivations and unmet needs?

• Who are the major segments?

• What are their motivations and unmet needs?

• Who are the existing and potential competitors?

• What strategic groups can be identified?

• What are their sales, share, and profits?

• What are the growth trends?

• What are their strengths, weaknesses, and strategies?

• How attractive is the market or industry and its submarkets?

• What are the forces reducing profitability in the market,

entry and exist barriers, growth projections,

cost structures, and profitability prospects?

• What are the alternative distribution channels

and their relative strengths?

• What industry trends are significant to strategy?

• What are the current and future key success factors?

Strategy Development:

A Discussion Agenda

• What environmental threats, opportunities,

and trends exist?

• What are the major strategic uncertainties

and information need areas?

• What scenarios can be conceived?

• What are our costs, strategy, performance, points of

differentiation, strengths, weaknesses, strategic problems

and culture?

• What is our existing business portfolio?

• What has been our level of investment in our various

product markets?

• What assets and competencies will

provide the basis for an SCA? How can

they be developed and maintained? How

can they be leveraged?

• What assets and competencies? How can

they be developed, maintained,

leveraged?

• What value proposition?

• What functional strategies?

• Energize the business

• Leverage the business

• Enter new business product/markets

• Go Global

Why Strategic Market Management?

• Precipitate the consideration of strategic choices.

• Help a business cope with change.

• Force a long-range view.

• Make visible the resource allocation decision.

• Aid strategic analysis and decision making.

• Provide a strategic management and control system.

• Provide both horizontal and vertical communication and

coordination systems

• The organizational levers are structure, systems, people, and

culture Each must be congruent and support the business

strategy.

• Decentralization with powerful silo groups can inhibit synergy and

efficiency For marketing, it leads to misallocation of resources,

confused brands, inhibited cross-silo offerings and programs, weak

marketing staffs, the failure to leverage success, and inadequate

cooperation and communication

• In dealing with the problem CMOs should consider nonthreatening

roles such as facilitator or consultant and should do not have as an

objective to centralize and standardize.

• The organizational structure lever provides the option to centralize

selectivity, use teams and networks, use matrix reporting

structures, and to employ a virtual organization.

• Management systems involves the information, measurement and

reward, and planning systems that can all promote cooperation and

communication.

• People on the CMO team, who can be sources internally or

externally, need to be knowledgeable and marketing, brands,

markets, products, and the organization in addition to being strategic and serving as change agents

• Culture involves shared values, norms of behavior and symbols and symbolic action The CEO is a key drive of strategy and it is

important to get him or her on board The fit between components is illustrated by the hit-industry topology, which contrasts the functions

of drillers (who develop products), pumpers (who focus on

production), and distributors (who specialize in marketing and

distribution).

“All progress is initiated by challenging

current conceptions and executed by

supplanting existing institutions.”

- George Bernard Shaw

“Those that implement the plans

must make the plans.”

- Patrick Hagerty, Texas Instruments

“There is nothing more requisite in

business than dispatch.”

- John Addison

“If I had to sum up in one word what

makes a good manager, I’d say decisiveness You can use the fanciest

computers to gather the numbers, but

in the end you have to set a timetable

and act.”

- Lee Iacocca