Transcript Chapter 2: Linking Marketing and Corporate Strategies

Linking Marketing and Corporate
Strategies
Chapter 2
Organizations
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Profit v. Nonprofit
Levels
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Corporate Level
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Business Unit Level
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Create value for shareholders
Set direction for the products
Functional Level
“Components” or departments of the business
 Cross-functional teams
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Organizational Strategy
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All marketing efforts are guided by
company policy
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The Business
Decided by corporate and business unit levels
 Who are we? Who are our customers? What do
they value?
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The Mission
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Decided at corporate and business unit levels
Organizational Strategy
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Values and Culture
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Present at all three levels
Culture is “the system of shared actions, values, and
beliefs that develops within an organization and
guides the behavior of its members.” (Schermerhorn
et al., 2000)
Goals and Objectives
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“Convert mission into targeted levels of performance”
i.e., Customer satisfaction→ what percent of
customers are we retaining?
Blazing a Marketing Path
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Where are we now?
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Customers
Competencies
Competitors
Blazing a Marketing Path
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Where do we want to go?
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BCG Analysis
Cash Cows
 Stars
 Question marks
 Dogs
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Blazing a Marketing Path
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Strengths
Looks at both the firm and the market
 Encourages forecasting
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Weaknesses
Information is difficult to obtain
 Neglects synergistic effects
 Labeling of firms can decrease effectiveness
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Blazing a Marketing Path
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Market-Product Analysis
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Just like it states, this analysis involves
graphing marketing strategies for new and
current products in new and current markets.
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How will the company market…
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…existing products in existing markets?
…existing products in new markets?
…new products in existing markets?
…new products in new markets?
The Strategic Marketing Process
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Process through which “an organization
allocates its marketing mix resources to
reach its target markets.”
Forms the basis of a firm’s marketing plan
Strategic Marketing Process
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Step 1: Situation Analysis
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Identify industry trends
Analyze competitors
Assess own company
Research customer
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SWOT Analysis
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Strategic Marketing Process
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Step 2: Market-Product Focus and GoalSetting
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Who and what aspects of the process
Set market and product goals
Select target markets
Find points of difference
Position the product
Strategic Marketing Process
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Step 3: Marketing Program
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How the company will reach customers
Develop the marketing mix
Develop the budget
Strategic Marketing Process
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Implementing the Process
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Obtain resources
Design marketing organization
Develop schedules
Execute marketing program
Marketing strategy
Marketing tactics
Strategic Marketing Process
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Controlling the Process
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Compare results with plans to identify
deviations
Act to correct negative deviations; exploit
positive deviations