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.