CHAPTER
DEVELOPING SUCCESSFUL MARKETING AND CORPORATE STRATEGIES
DEFINITION OF ORGANIZATIONS
Profit
Organizations as defined by profit
Business Firm Nonprofit Organization Both commonly referred to as the Firm the Company the Corporation the Organization
ORGANIZATIONS LEVELS OF STRATEGY
Corporate Level-create value for stockholders Business Unit Level- plan direction for each SBU Functional Level execute plan on daily basis Department-specialized functions of daily operation
FOCUS OF THE STRATEGY
Mission -statement of the organizations purpose for existing, often identifying its customers, markets, products, technology, and values.
Goals or Objectives
Profit Sales Market Share Quality Customer Satisfaction Employee Welfare Social Responsibility
SETTING STRATEGIC DIRECTIONS A Look Around: Where Are We Now?
Identify your Customers Competencies-identify what you do best
Competitive Advantage-your unique strength
Competitors-identify the biggest threats
SETTING STRATEGIC DIRECTIONS Growth Strategies: Where Do We Want to Go?
Business Portfolio Analysis (BCG Matrix)
Market Growth Rate-vertical axis
Relative Market Share-horizontal axis
Stars
(HH)
Question Marks or Problem Children
(HL)
Cash Cows
(LH)
Dogs
(LL)
Boston Consulting Group portfolio analysis for Kodak sbus in 2003
Kodak digital camera
Kodak digital photo printer
Kodak film sales: US, Canada, & W. Europe
Kodak selfservice kiosk
SETTING STRATEGIC DIRECTIONS Growth Strategies: How Do We Get There?
Market-Product Analysis
Market Penetration- same product; same market
Market Development- same product; new market Product Development-new product; same market Diversification new product; new market
Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerrys
THE STRATEGIC MARKETING PROCESS
How do we allocate our resources to get where we 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
THE STRATEGIC MARKETING PROCESS -The Planning Phase
Step 1: SWOT Analysis
GOOD NOW Maintain & build
BAD NOW Remedy or stop
GOOD FUTURE Prioritize & optimize
BAD FUTURE Intercept and counter
Ben & Jerrys: SWOT analysis
Which Product-Which Customers
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
Marketing Program Strategy
Step 3: Marketing Program
Product Strategy Price Strategy Promotion Strategy Place (Distribution) Strategy
Elements of the marketing mix that comprise a cohesive marketing program
THE STRATEGIC MARKETING PROCESSThe Implementation Phase
Obtaining Resources
Designing the Marketing Organization -delegating who does what Developing Schedules-Linear or Gantt
Tasks to complete a term project
Gantt chart for scheduling the term project
THE STRATEGIC MARKETING PROCESSThe Control Phase
Comparing Results With Plans to Identify Deviations
Filling the Planning Gap Marketings Job
Acting on Deviations
Evaluation & control of Kodaks marketing program
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 firms total expenses are subtracted from its total sales.
Mission
Mission is a statement of the organizations scope, often identifying its customers, markets, products, technology, and values.
Goals or Objectives
Goals or objectives convert the mission into targeted levels of performance 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 activities of an organization for a specified future period of time. It allocates the 4Ps of a firm to reach the target market.
SWOT Analysis
SWOT analysis is an acronym describing an organizations 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.
