Lecture Marketing (12/e): Chapter 2 – Kerin, Hartley, Rudelius

Chapter 2: Developing successful organizational and marketing strategies. In this chapter you will learn: Describe three kinds of organizations and the three levels of strategy in them; describe core values, mission, organizational culture, business, and goals; explain why managers use marketing dashboards and marketing metrics;...

Describe three kinds of organizations and the three levels of strategy in them.

Explain why managers use marketing dashboards and marketing metrics.

LO 2-3

LO 2-2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:

LO 2-1

Describe core values, mission, organizational culture, business, and goals.

LO 2-6

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:

LO 2-5 Explain the three steps of the planning

phase of the strategic marketing process.

Describe the four components of the implementation phase of the strategic marketing process.

LO 2-7 Discuss how managers identify and act

on deviations from plans.

STARTING A BUSINESS BY GETTING AN “A”

IN AN ICE CREAM-MAKING COURSE!

FIGURE 2-A How an industry is structured

MAKING RESPONSIBLE DECISIONS

Using Social Entrepreneurship to Help People

LO 2-1

FIGURE 2-1 The board of directors oversees

the three levels of strategy in organizations:

corporate, business unit, and functional

 Strategic Business Unit

(SBU) Level

• Perfume • Leather • Luggage

FIGURE 2-2 Visionary organizations:

(1) establish a foundation, (2) set a direction,

and (3) create strategies to successfully

develop and market their offerings

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL FOUNDATION (WHY)

Star Trek’s Star Ship Enterprise

Why is a mission statement important?

LO 2-2

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL DIRECTION (WHAT)

MARKETING MATTERS

Angry Birds: Discovering Its Business Model

Angry Birds Video

LO 2-2

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL DIRECTION (WHAT)

 Goals or Objectives: S.M.A.R.T

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL DIRECTION (WHAT)

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL STRATEGIES (HOW)

LO 2-2

• Corporate • SBU • Functional

• Product • Service • Idea

STRATEGY IN VISIONARY ORGANIZATIONS

ORGANIZATIONAL STRATEGIES (HOW)

FIGURE 2-B Elements in typical marketing and

business plans targeted at different audiences

STRATEGY IN VISIONARY ORGANIZATIONS

TRACKING STRATEGIC PERFORMANCE

LO 2-3

FIGURE 2-3 An effective marketing dashboard

like Sonatica’s helps managers assess a

business situation at a glance

FIGURE 2-3A Marketing Dashboard: Website

Traffic Sources

FIGURE 2-3B Marketing Dashboard: Sales

Performance by SBU

FIGURE 2-3C Marketing Dashboard: Monthly

Website Visits by State

USING MARKETING DASHBOARDS

How Well is Ben & Jerry’s Doing?

LO 2-3

Dollar Sales and Dollar Market Share

Dollar Sales ($) = Average Price × Quantity Sold Dollar Market Share (%) = Ben & Jerry's Sales ($)

Total Industry Sales ($)

SETTING STRATEGIC DIRECTIONS

WHERE ARE WE NOW?

LO 2-4

• Competitive Advantage

SETTING STRATEGIC DIRECTIONS

WHERE ARE WE NOW?

LO 2-4

SETTING STRATEGIC DIRECTIONS

WHERE DO WE WANT TO GO?

Apple Consumer-Related Products

What SBU type in the BCG growth-share matrix?

LO 2-4

MP3 Players Desktop/Laptop PCs

FIGURE 2-4 BCG business portfolio analysis

for Apple’s consumer SBUs starting in 2013

and projected to 2016

SETTING STRATEGIC DIRECTIONS

WHERE DO WE WANT TO GO?

LO 2-4

FIGURE 2-5 Four alternative market-product

strategies for Ben & Jerry’s to expand sales

revenues using diversification analysis

THE STRATEGIC MARKETING PROCESS

LO 2-5

• How Do We Allocate Our Resources to Get to Where We Want to Go?

• How Do We Convert Our Plans into Actions?

• How Do Our Results Compare With Our Plans and Do

Deviations Require New Plans?

FIGURE 2-6 The strategic marketing process

has three phases: planning, implementation,

and evaluation

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

LO 2-5

 Analyze Competitors

 Identify Industry Trends

 Research Present and

 Assess the Organization

• SWOT Analysis Study

FIGURE 2-7 Ben & Jerry’s SWOT analysis that

serves as the basis for management actions

regarding growth

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

LO 2-5

• Set Marketing & Product Goals

• Select Target Markets

• Find Points of Difference

• Position the Product

THE STRATEGIC MARKETING PROCESS

THE PLANNING PHASE

LO 2-5

• Product Strategy

• Price Strategy

• Promotion Strategy

• Place (Distribution) Strategy

FIGURE 2-8 The four Ps elements of the

marketing mix must be blended to produce

a cohesive marketing program

THE STRATEGIC MARKETING PROCESS

THE IMPLEMENTATION PHASE

LO 2-6

Responsibilities, and

Deadlines

• Marketing Strategy • Marketing Tactics

FIGURE 2-9 Organization of a typical

manufacturing firm, showing a breakdown

of the marketing department

THE STRATEGIC MARKETING PROCESS

THE IMPLEMENTATION PHASE

• Product Line Groupings

• Geographical Groupings

• Market-Based Groupings

Role of the Product/Brand Manager

THE STRATEGIC MARKETING PROCESS

THE IMPLEMENTATION PHASE

LO 2-6

Responsibilities, and Deadlines

• Gantt Chart

• Action Item List

FIGURE 2-E Tasks and time needed to

complete a term project

FIGURE 2-10 Gantt chart for scheduling a

term project that distinguishes sequential and

concurrent tasks

THE STRATEGIC MARKETING PROCESS

THE EVALUATION PHASE

LO 2-7

• Exploiting a Positive Deviation

• Correcting a Negative Deviation

• Planning Gap

Plans to Identify Deviations

FIGURE 2-11 The evaluation phase requires

that Apple compare actual results with goals to identify and act on deviations to fill in the

“planning gap” by 2012

IBM: USING STRATEGY TO BUILD

A “SMARTER PLANET”

VIDEO CASE 2