MKT 340 Ch02 ppt

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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 2-4 Discuss how an organization assesses where it is now and where it seeks to be.



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!

Ben & Jerry’s

http://kerin.tv/cr6e/ppt2-1



TODAY’S ORGANIZATIONSKINDS OF ORGANIZATIONS

LO 2-1

Organization Offerings

For-Profit Organization (Business Firm)

Nonprofit Organization

Industry: Organizations that have similar offerings

Government AgencyLED Lightbulb

http://kerin.tv/cr6e/v2-1



MAKING RESPONSIBLE DECISIONSUsing Social Entrepreneurship to Help People

Social Entrepreneurship

Teach for AmericaSightLife

LO 2-1

http://core.kerin.tv/ppt2-2




FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional



Strategy

TODAY’S ORGANIZATIONSSTRATEGY AND ORGANIZATIONAL STRUCTURE

LO 2-1

Corporate Level:

Chief Marketing Officer (CMO) Strategic Business Unit

(SBU) – for related offerings. • Perfume • Leather

Goods• Luggage

Prada

Chief Executive Officer (CEO)





TODAY’S ORGANIZATIONSSTRATEGY AND ORGANIZATIONAL STRUCTURE

LO 2-1

Functional Level: groups create value for the organization

Department: groups with a specific function (ex: marketing)

Cross-Functional Teams: Groups with a common purpose/task



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 ORGANIZATIONSORGANIZATIONAL FOUNDATION (WHY)

LO 2-2

Core Values: Principles that guide an organization

OrganizationalCulture

Mission



Star Trek’s Star Ship EnterpriseWhy is a mission statement important?

LO 2-2

Example:Star Trek’s Star Ship Enterprise

Mission Statement“To explore strange new worlds, to

seek out new life and new civilizations, to boldly go where no

one has gone before.”



STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)LO 2-2

• What do we do?

• What businessare we really in?

Business

BusinessModel

Angry Birds




STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)

LO 2-2

• Profit

• Sales ($ or #)

• Market Share

• Customer Satisfaction

• Employee Welfare

• Social Responsibility

• Quality • Efficiency

Goals or Objectives: Targets of performance to achieve



Goals or Objectives

STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)

LO 2-2

• Specific

• Measurable

• Relevant

• Attainable

• Time-Based



STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL STRATEGIES (HOW)

LO 2-2

Strategies and Plan Vary by Level:

And Vary by Offering

• Corporate • SBU • Functional

• Product • Service • IdeaMedtronicWeb site




STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL STRATEGIES (HOW)

LO 2-2

Marketing Plans

Business Plans

• Long-Range

• Annual Review



STRATEGY IN VISIONARY ORGANIZATIONS TRACKING STRATEGIC PERFORMANCE

LO 2-3

Marketing Dashboards: Visual display of essential marketing information

Marketing Metric: Measures the value of an activity or result

Data VisualizationDundas

Dashboard




FIGURE 2-3 An effective marketing dashboard helps managers assess a business situation at

a glance

Source: Dundas Data Visualization



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 DASHBOARDSHow Well is Ben & Jerry’s Doing?

LO 2-3

Dollar Sales and Dollar Market Share



SETTING STRATEGIC DIRECTIONSWHERE ARE WE NOW?

LO 2-4

• Give a competitive Advantage

Competencies

Must Understand Customers’ Wants

Lands’ End

Medtronic





SETTING STRATEGIC DIRECTIONSWHERE ARE WE NOW?

LO 2-4

Competitors

Who are Lands’ End’s Competitors?



SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?

LO 2-4

Business Portfolio Analysis (BCG Matrix): Quantifies performance

Mar

ket G

row

th R

ate

Stars

Cash Cows Dogs

Question Marks

Relative Market Share

High

High Low

Low

Boston ConsultingGroup




Apple Consumer-Related ProductsWhat SBU type in the BCG growth-share matrix?

LO 2-4

TabletsSmartphones

MP3 PlayersDesktop/Laptop PCs

Apple.com

http://12e.kerin.tv/ppt2-11



FIGURE 2-4 BCG business portfolio analysis for Apples consumer SBUs



Diversification Analysis

• Market Penetration

• Market Development

• Product Development

• Diversification

SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?

LO 2-4

Ben & Jerry’sBonnaroo Buzz Ad




FIGURE 2-5 Four alternative market-product strategies for Ben & Jerry’s to expand sales revenues using diversification analysis



THE STRATEGIC MARKETING PROCESSLO 2-5

• How Do We AllocateOur Resources to Get toWhere We Want to Go?

Strategic Marketing Process

• How Do We ConvertOur Plans into Actions?

• How Do Our Results CompareWith Our Plans and DoDeviations Require New Plans?



FIGURE 2-6 The strategic marketing process has three phases: planning, implementation, and evaluation



THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASE

LO 2-5

Weaknesses

Strengths

Threats

Opportunities

• Situation Analysis

• SWOT Analysis

Step 1: Situation (SWOT) Analysis




LO 2-5


Analyze Competitors

Identify Industry Trends

Research Present and Prospective Customers

Assess the Organization

• SWOT Analysis Study



FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth




LO 2-5


Correct a Weakness

Build on a Strength

Avoid a Disaster- Laden Threat

Exploit an Opportunity

• SWOT Analysis Actions




LO 2-5

• Market Segmentation: Group buyers by needs

• Points of Difference: Makes product superior

Step 2: Market-Product Focus and Goal Setting




LO 2-5

• Set Marketing & Product Goals

• Select Target Markets

• Find Points of Difference

• Position the Product

Example: Medtronic’s Pacemaker




LO 2-5

• Product Strategy

• Price Strategy

• Promotion Strategy

• Place (Distribution) Strategy

Step 3: Marketing Program



FIGURE 2-8 The four Ps elements of the marketing mix must be blended to producea cohesive marketing program



THE STRATEGIC MARKETING PROCESSTHE IMPLEMENTATION PHASE

LO 2-6

Obtaining Resources

Designing the Marketing Organization

Defining Precise Tasks, Responsibilities, and Deadlines

Executing the Marketing Program

• Marketing Strategy • Marketing Tactics



THE IMPLEMENTATION PHASE OFTHE STRATEGIC MARKETING PROCESS

IS PLANNING OR IMPLEMENTATION THE PROBLEM?LO 2-6

• Poor• Excellent

The Implementation

The Plan and Strategy

Both



FIGURE 2-B Results of good and bad marketing planning and implementation



FIGURE 2-9 Organization of a typical manufacturing firm, showing a breakdownof the marketing department




LO 2-6

Defining Precise Tasks, Responsibilities, and Deadlines• Time-Based Agenda




LO 2-6

Defining Precise Tasks, 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 PROCESSTHE EVALUATION PHASE

LO 2-7

• Exploiting a Positive Deviation

• Correcting a Negative Deviation

Acting on Deviations

• Planning Gap: Compare goals vs. results

Comparing Results withPlans 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 2014



THE EVALUATION PHASE OFTHE STRATEGIC MARKETING PROCESS

MARKETING ROI, METRICS, AND DASHBOARDSLO 2-7

Marketing ROI

Marketing Metrics

Marketing Dashboards



IBM: USING STRATEGY TO BUILDA “SMARTER PLANET”

VIDEO CASE 2

IBM Video Case




VIDEO CASE 2IBM

1. What is IBM’s “Smarter Planet” business strategy? How does this strategy relate to IBM’s mission and values?



2. Conduct a SWOT analysis for IBM’s Smarter Planet initiative. What are the relevant trends to consider for the next three to five years?

VIDEO CASE 2IBM



VIDEO CASE 2IBM

3. How can IBM communicate its strategy to companies, cities, and governments?



VIDEO CASE 2IBM

4. What are the benefits of the Smarter Planet initiative to (a) society and (b) IBM?



VIDEO CASE 2IBM

5. How should IBM measure the results of the Smarter Planet strategy?



CALCULATING A“FOG INDEX” FOR

YOUR OWN WRITING

IN-CLASS ACTIVITY 2-1





MARKETING YOURSELF

IN-CLASS ACTIVITY 2-2



ICA 2-2Marketing Yourself



ICA 2-2Marketing Yourself



Profit

Profit is the money left after afor-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.



Strategy

Strategy is an organization’slong-term course of action designed to deliver a unique customer experience while achieving its goals.



Core Values

Core values are the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.



Mission

A mission is a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. The term is often used interchangeably with vision.



Organizational Culture

An organizational culture consists of the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members ofan organization.



Business

A business describes the clear, broad, underlying industry or market sector of an organization’s offering.



Goals or Objectives

Goals or objectives are the statements of an accomplishment of a task to be achieved, often by a specific time.



Market Share

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.



Marketing Plan

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



Business Plan

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



Marketing Dashboard

A marketing dashboard is the visual computer display of the essential information related to achieving a marketing objective.



Marketing Metric

A marketing metric is a measure of the quantitative value or trend of a marketing action or result.



Business Portfolio Analysis

Business portfolio analysis is a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.



Diversification Analysis

Diversification analysis is a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.



Strategic Marketing Process

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



Situation Analysis

A situation analysis involves taking stock of where the firm or product has been recently, where it is now, and where it is headedin terms of the organization’s marketing plans and the external forces and trends affecting it.



SWOT Analysis

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



Market Segmentation

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



Points of Difference

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



Marketing Strategy

Marketing strategy is the means by which a marketing goal is to be achieved, usually characterizedby a specified target market anda marketing program to reach it.



Marketing Tactics

Marketing tactics are the detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies.

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