Transcript Chapter 2
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 ORGANIZATION’S 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 organization’s purpose for existing, often identifying its customers, markets, products, technology, and values. Goals or Objectives • Profit • Customer Satisfaction • Sales • Employee Welfare • Market Share • Social Responsibility • Quality 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 Question Marks or Problem Children (HH) Cash Cows (LH) (HL) Dogs (LL) Boston Consulting Group portfolio analysis for Kodak sbu’s in 2003 Kodak digital camera Kodak film sales: US, Canada, & W. Europe Kodak digital photo printer 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 & Jerry’s 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 & Jerry’s: 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 – Marketing’s Job Acting on Deviations 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. Mission Mission is a statement of the organization’s 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 4P’s of a firm to reach the target market. SWOT Analysis 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.