DEVELOPING SUCCESSFUL MARKETING

AND CORPORATE STRATEGIES

CHAPTER

DEFINITION OF ORGANIZATIONS

• Profit

Business Firm

• Organizations as defined by profit

Nonprofit Organization

Both commonly referred to as the Firm the Company the Corporationthe Organization

ORGANIZATION’S LEVELS OF STRATEGY

Corporate Level-create value for stockholders

Functional Level –execute plan on daily basis

Business Unit Level- plan direction for each SBU

Department-specialized functions of daily operation

Mission -statement of the organization’s purpose for existing, often identifying its customers, markets, products, technology, and values.

Goals or Objectives

• Quality

• Profit

• Sales

• Market Share

• Customer Satisfaction

• Employee Welfare

• Social Responsibility

FOCUS OF THE STRATEGY

SETTING STRATEGIC DIRECTIONS

Competencies-identify what you do best

• A Look Around: Where Are We Now?

Identify your Customers

• 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)

• Relative Market Share-horizontal axis

• Market Growth Rate-vertical axis

Cash Cows (LH)

Stars (HH)

Dogs (LL)

Question Marks or Problem Children (HL)

Boston Consulting Group portfolio analysis for Kodak sbu’s in 2003

Kodak self-service kiosk

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

Kodak digitalphoto printer

Kodak digitalcamera

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 & Jerry’s

THE 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

Step 1: SWOT Analysis

THE STRATEGIC MARKETING PROCESS -The Planning Phase

GOOD NOWMaintain & build

GOOD FUTUREPrioritize & optimize

BAD NOWRemedy or stop

BAD FUTUREIntercept and counter

Ben & Jerry’s: SWOT analysis

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

Which Product-Which Customers

Step 3: Marketing Program

• Product Strategy

• Price Strategy

• Promotion Strategy

• Place (Distribution) Strategy

Marketing Program Strategy

Elements of the marketing mix that comprise a cohesive marketing program

Obtaining Resources

Designing the Marketing Organization-delegating who does what

Developing Schedules-Linear or Gantt

THE STRATEGIC MARKETING PROCESS-The Implementation Phase

Tasks to complete a term project

Gantt chart for scheduling the term project

Comparing Results With Plans to Identify Deviations

Acting on Deviations

• Filling the Planning Gap – Marketing’s Job

THE STRATEGIC MARKETING PROCESS-The Control Phase

Evaluation & control of Kodak’s 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 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

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

A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the target market.

A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the target market.

Marketing Plan

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