Transcript BA 2303 - StudyDaddy

BA 2303
Principles of Marketing - UNBSJ
Developing Successful
Marketing Strategies
Instructor – Terry Conrod
BA 2303
Learning Objectives
1.Describe the three organizational levels of strategy.
2.Describe why business, mission, culture, and goals are important
in organizations.
3.Explain how organizations set strategic directions by assessing
where they are now and seek to be in the future.
4.Describe the strategic marketing process and its three key
phases: planning, implementation, and control.
5.Explain how the marketing mix elements are blended into a
cohesive marketing program.
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LEVELS OF STRATEGY IN ORGANIZATIONS
‣ Today’s Organizations: Kinds, Levels, and Teams
‣ Kinds of Organization
‣ Business firms
‣ Non-profit organizations
‣ Levels in Organizations and How Marketing Links to Them
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Corporate level
Business unit
Business unit level
Functional level
‣ Where Things Happen: Functional Areas and Cross-Functional
Teams
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FIGURE 2-1 The three levels of strategy in organizations
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LEVELS OF STRATEGY IN ORGANIZATIONS
‣ Strategy Issues in Organizations
‣ The Business Definition
‣ The Mission
‣ Organizational Culture
‣ Stakeholders
‣ Organizational Culture
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Mission of the Holiday Inn Burlington
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LEVELS OF STRATEGY IN ORGANIZATIONS
‣ Strategy Issues in Organizations
‣ Goals or Objectives (cont.)
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Profit
Sales revenue
Market share
Unit sales
Quality
Customer satisfaction
Employee welfare
Social responsibility
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Concept Check
What are the three levels in today’s large
organizations?
Answer:
The three levels of strategy in organizations are
corporate, business unit, and functional.
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Concept Check
What is the difference between an organization’s
mission and its culture?
Answer:
A mission statement identifies the organization's
scope including its customers, markets, products,
technology, and values. In contrast, a culture
which can exist at the corporate, business unit, or
functional level is a system of shared values,
attitudes, and behaviours that distinguish it from
others.
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Concept Check
Give an example of a goal for a business and a goal
for a non-profit organization.
Answer:
An example of a goal for a business might be "to
increase annual profits by 20% in 20XX (current
year)." In comparison, an example of a goal for a
non-profit organization might be "to increase
donations by 20% since the last major fundraising
effort."
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SETTING STRATEGIC DIRECTIONS
‣ A Look Around: Where Are We Now?
‣ Customers
‣ Competencies
‣ Competitive advantage
‣ Quality
‣ Benchmarking
‣ Competitors
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SETTING STRATEGIC DIRECTIONS
‣ Growth Strategies: Where Do We Want to Go?
‣ Business Portfolio Analysis
‣ BCG Analysis
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Boston Consulting Group portfolio analysis.
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SETTING STRATEGIC DIRECTION
‣ Growth Strategies: Where Do We Want to Go? (cont.)
‣ Market-Product Analysis
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Four market-product strategies
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Concept Check
What are “competencies” and why are they
important?
Answer:
Competencies are an organization's special
capabilities, including the skills, technologies, and
resources that distinguish it from other
organizations. Exploiting these competencies may
lead to an organization's success.
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Concept Check
What is business portfolio analysis?
Answer:
Business portfolio analysis is the understanding of
a firm's strategic business units (SBU's) as though
they were a collection of separate investments.
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Concept Check
What are the four market-product strategies?
Answer:
The four market-product strategies are:
•
Market penetration
•
Product development
•
Market development
•
Diversification
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THE STRATEGIC MARKETING PROCESS
‣ Strategic Marketing Process: The Planning Phase
‣ Step 1: Situation Analysis
‣ SWOT
‣ Step 2: Market-Product Focus and Goal Setting
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Set marketing and product goals
Select target markets
Find points of difference
Position the product
‣ Step 3: Marketing Program
‣ Product, Price, Promotion & Place (distribution) strategies
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Strategic Marketing Process
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Ben & Jerry’s: a SWOT analysis to get it growing in Canada
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Elements of the marketing mix that comprise a cohesive
marketing program
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Concept Check
What is the difference between a strength and an
opportunity in a SWOT analysis?
Answer:
In a SWOT analysis, a strength is a favourable evaluation of
the internal situation at the level of the entire
organization, the business unit, the product line, or the
specific product. An opportunity is a favourable
evaluation of the external situation at the level of the
entire organization, the business unit, the product line, or
the specific product.
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Concept Check
What is market segmentation?
Answer:
Market segmentation is the process of aggregating
prospective buyers into groups, or segments, that
(1) have common needs and (2) will respond
similarly to a marketing action.
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Concept Check
What are “points of difference” and why are they
important?
Answer:
Points of difference are those characteristics of a
product that make it superior to competitive
substitutes. This concept is the single most
important factor in the success or failure of a new
product.
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STRATEGIC MARKETING PROCESS
‣ Strategic Marketing Process: The Implementation
Phase
‣ Obtaining Resources
‣ Designing the Marketing Organization
‣ Developing Schedules
‣ Executing the Marketing Program
‣ Marketing strategy
‣ Marketing tactics
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Organization of a typical manufacturing firm showing a
breakdown of the marketing department
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STRATEGIC MARKETING PROCESS
‣ Strategic Marketing Process: The Control Phase
‣ Comparing Results with Plans to Identify Deviations
‣ Correcting a negative deviation
‣ Exploiting a positive deviation
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Concept Check
What is the control phase of the strategic
management process?
Answer:
The control phase of the strategic marketing
process seeks to keep the marketing program
moving in the direction set for it.
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Concept Check
How do the objectives set for a marketing process in
the planning phase relate to the control phase of the
strategic marketing process?
Answer:
In the control phase, the marketing manager (1)
compare the results of the marketing program with
the goals in the written plans to identify deviations
and (2) to act on these deviations--correcting
negative deviations and exploiting positive ones.
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Profit
‣ The reward to a business firm for the risk it
undertakes in offering a product for sale; the money
left over after a firm’s total expenses are subtracted
from its total revenues.
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Corporate level
‣ The corporate level is where top management directs
overall strategy for the entire organization.
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Business Unit
‣ The business unit refers to an organization that
markets a set of related products to a clearly defined
group of customers.
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Business Unit Level
‣ The business unit level is the level at which business
unit managers set the direction for their products and
markets.
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Functional Level
‣ The functional level is where groups of specialists
actually create value for the organization.
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Cross-Functional Teams
‣ Cross-functional teams include a small number of
people from different departments in an organization
who are mutually accountable to a common set of
performance goals.
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Mission
‣ A mission is a statement of the organization’s scope.
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Stakeholders
‣ Stakeholders are individuals or groups within or
outside an organization that relate to what it does
and how well it performs.
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Goals
‣ Goals or objectives convert the mission into targeted
levels of performance to be achieved.
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Market Share
‣ Market share is the ratio of sales revenue of the firm
to the total sales revenue of all firms in the industry.
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Competencies
‣ Competencies are an organization’s special
capabilities, including skills, technologies, and
resources.
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Competitive Advantage
‣ A competitive advantage is a unique strength relative
to competitors.
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Quality
‣ Quality means the features and characteristics of a
product that influence its ability to satisfy customer
needs.
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Benchmarking
‣ Benchmarking is discovering how others do something
better than your own firm so you can imitate or
leapfrog competition.
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Strategic Marketing Process
‣ The strategic marketing process is how an
organization allocates its marketing mix resources to
reach its target markets.
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Marketing Plan
‣ A road map for the marketing activities of an
organization for a specified future period of time,
such as one year or five years.
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Situation Analysis
‣ Taking stock of where the firm or product has been
recently, where it is now, and where it is headed in
terms of the organization’s plans and the external
factors and trends affecting it.
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SWOT Analysis
‣ An acronym describing an organization’s appraisal of
its internal Strengths and Weaknesses and its external
Opportunities and Threats.
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Market Segmentation
‣ Market segmentation is the process of aggregating
prospective buyers into groups that have common
needs and will respond similarly to a marketing
action.
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Points of Difference
‣ Points of difference are those characteristics of a
product that make it superior to competitive
substitutes.
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Marketing Strategy
‣ A marketing strategy is the means by which a
marketing goal is to be achieved.
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Marketing Tactics
‣ Marketing tactics are detailed day-to-day operational
decisions essential to the overall success of marketing
strategies.
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Objectives
‣ Convert the mission into targeted levels of
performance to be achieved.
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Organizational Culture
‣ A set of values, ideas, and attitudes that is learned
and shared among the members of an organization.