Week 2 1819

© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.
Not authorized for sale or distribution in any manner.

Slide 2-1
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:
Describe three kinds of organizations

LO 2-1 and the three levels of strategy in them.
Describe core values, mission,

LO 2-2 organizational culture, business, and
goals.
Explain why managers use marketing

LO 2-3 dashboards and marketing metrics.
© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
Slide 2-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:
LO 2-4 Discuss how an organization assesses

where it is now and where it seeks to be.
LO 2-5 Explain the 3 steps of the planning

phase of the strategic marketing
process.
Slide 2-3
LO 2-1 TODAY’S ORGANIZATIONS
3 KINDS OF ORGANIZATIONS
 Organization  Offerings
1. For-Profit Organization
(Business Firm)
2. Nonprofit Organization
3. Government Agency
Slide 2-4
What is Strategy?
• Strategy is the
direction
• Without goals no
strategy
• Goals and strategies
 plan
Slide 2-5
The board of directors oversees the three
levels of strategy in organizations: corporate,
business unit, and functional
1
2
3
Slide 2-6
Is it a corporate level?
Is it a business level?
conceptual
Slide 2-7
STRATEGY AND ORGANIZATIONAL STRUCTURE
 Can’t Be “All Things to All People”
Slide 2-8
Strategy – 3 levels
1. Corporate level
http://slideplayer.com/slide/5189998/
Slide 2-9
2. Business level strategy
http://www.slideshare.net/anildhankhar47/business-level-strategies
Slide 2-10
STRATEGY AND ORGANIZATIONAL STRUCTURE
Disney’s Special Discount

Admission Offer for HK
3. Functional Level Residents
 Department
 Cross-Functional Teams
Slide 2-11
Summary 1
3 kinds of organizations and
3 levels of strategies
• 3 kinds of organizations
–P or B or F
–N
–G
• 3 levels of strategies
–C
–B
–F
Slide 2-12
Visionary Organizations: - with missions/ goals
(1) establish a foundation(core values), (2) set

a direction(goal), and (3) create strategies to
successfully develop and market their
offerings
I. II. III.
Slide 2-13
STRATEGY IN VISIONARY ORGANIZATIONS
LO 2-2
I. ORGANIZATIONAL FOUNDATION (WHY)
 Core Values
• What the company truly and deeply believe
 Mission or Vision
• Mission Statement
• What they want to accomplish
Slide 2-14
• Nation
• Family
• Groups
• Face
• Power distance/
respect rank
• Patient
Slide 2-15
What is the meaning of an
organization’s “mission”?
Excellent atmosphere
Excellent coffee
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Slide 2-16
Starbucks Reserve
Slide 2-17
Organizational Culture
• E.g. Southwest Airlines
• mission: highest quality of Customer
Service delivered with a sense of warmth,
friendliness, individual pride, and
Company Spirit.
– https://www.youtube.com/watch?v=TPOeNjnTlLM
Slide 2-18
LO 2-2
II. ORGANIZATIONAL DIRECTION (WHAT)
1. Nature of Business
• What do we do?
• What business
are we really in?
 Business Model – watch out the myopia

 E.g. “UPS Return”
https://
www.youtube.com/watch?v=CP
UPS Ad
L-S_zJsX8
Business model of
WeChat?
From customer base
(“free-mium”) to new
money-earning
features
https://
www.youtube.com/watch?v=VA
esMQ6VtK8
Slide 2-20
LO 2-2
2. (Priority of) Goals/ Objectives?
• Profit • Customer Satisfaction
• Sales ($ or #) • Employee Welfare
• Market Share • Social Responsibility
• Quality • Efficiency
http://www.bidnessetc.com/28869-honda-motor-co-hmc-
prioritize-quality-over-sales-target/
Slide 2-21
LO 2-2
 Goals or Objectives: S.M.A.R.T

https://
www.youtube.com/watch?v=xqF
• Specific (put into numbers)
gYMc7ke8
• Measurable (e.g. in $, market share, gross profit %)
• Attainable
• Relevant (to the mission)
• Time-Based
Slide 2-22
Common Objectives in
Marketing
• Awareness – 70% increase?
• Sales – 15% increase?
• Market Share – 2% increase
– If we want to maintain share, we may growth the

sales as much as our competitors, and that means we
need to bring much more people aware our new
moves
Slide 2-23
Slide 2-24
LO 2-2
III. ORGANIZATIONAL STRATEGIES (HOW)
 Variation by Level
• Corporate • SBU • Functional
 Variation by Products (or Offering)
• Each product/ brand operate as a SBU
Slide 2-25
Summary 2
• Core Value
–
• Mission
–
• Org Culture
–
• Business (nature)
–
• Goals – S M A R T
Slide 2-26
Strategic Directions
Where are we now?
1. Competencies
• What do we do best?
• Skills, technologies and resources which distinguish
us from other organizations and which provide
customer value
• Provide a competitive advantage – unique strength
relative to competitors that provides superior returns
• Medtronics’ competencies – world class technologies,
training and service
2. Customers
• Who are they and what are their needs?
• Different groups with different preferences
• Need clear focus on customers
2-27
LO2-4
Strategic Directions: From now to the future
LO 2-4 SETTING STRATEGIC DIRECTIONS
WHERE ARE WE NOW?
3. Competitors
The 3 C’s
Who are Giordano’s competitors?

Slide 2-28
WHERE DO WE WANT TO GO?
 Business Portfolio Analysis (BCG Matrix)

High
Stars Question Marks
Market Growth Rate
Cash Cows Dogs
Boston
Consulting
Low Group
High Low
Relative Market Share
Slide 2-29
LO 2-4
Apple Consumer-Related Products
What SBU type in the BCG growth-share matrix?
Apple Watch iPod
Apple’s
Web site
iPhone iPad/iPad mini

Slide 2-30
LO 2-4 MARKETING MATTERS
Where Will Apple’s Future SBU Growth Come From?
1. _______________________________________
2. _______________________________________
3. _______________________________________
4. _______________________________________
Slide 2-31
BCG business portfolio analysis for Apple’s
consumer SBUs starting in 2013 and projected
to 2016
WHY such a move?

WHERE DO WE WANT TO GO?
Cannot rely on one product

 Diversification Analysis
as it will grow old

• Market Penetration
• Market Development
• Product Development
• Diversification Ben & Jerry’s

Bonnaroo Buzz Ad
Slide 2-33
Example: Sony’s alternatives
Slide 2-34
Summary 3 – assess where are we
• 3 C’s
–C C C
• SWOT – S W O T
• BCG – 4 quadrants
• Diversification Analysis – 4 strategies, 2 dimensions

–
Slide 2-35
Tracking Strategic Performance
Using Marketing Dashboards
• Dashboards
• Visual computer display of essential information
• To achieve marketing objectives
• Marketing Metrics
• Dashboards display marketing metrics
• Use data visualization
• Help marketers to spot deviations from plans and take
corrective actions
• Example of Sonatica Dashboards

• Web traffic sources
• Sales performance by SBUs
• Monthly website visits by cities
2-36
LO2-3
Values, Mission, Culture, Business and Goals
An effective marketing dashboard like
Sonatica’s helps managers assess a business
situation at a glance
Source: Dundas Data Visualization

Slide 2-37
Marketing Dashboard: Website Traffic Sources
Slide 2-38
Marketing Dashboard: Sales Performance by
SBU
Slide 2-39
Summary 4
– tools to express where are we
• Dashboards – visual representations
• Marketing Metrics – quantified and

objective analysis
Slide 2-40
LO 2-5 THE STRATEGIC MARKETING PROCESS
 Strategic Marketing Process

• How Do We Allocate
Our Resources to Get to
Where We Want to Go?
• How Do We Convert
Our Plans into Actions?
• How Do Our Results Compare

With Our Plans and Do
Deviations Require New Plans?
Slide 2-41
The strategic marketing process has three
phases: 1. planning, 2. implementation, and
3. evaluation
Slide 2-42
LO 2-5
THE STRATEGIC MARKETING PROCESS
1. THE PLANNING PHASE
 Step 1: Situation (SWOT) Analysis

• SWOT Analysis - content
What SWOT covers?

 Strengths
 Weaknesses
 Opportunities
 Threats
Slide 2-43
Ben & Jerry’s SWOT analysis that serves as
the basis for management actions regarding
growth
Slide 2-44
LO 2-5
• SWOT Analysis used for

What SWOT actually
Identify Industry Trends
does?
 Analyze Competitors
 Assess the Organization
 Research Present and

Prospective Customers
Slide 2-45
GIORDANO’S SWOT ANALYSIS
2-46
LO2-5
Strategic Marketing: Planning, Implementation, Evaluation
LO 2-5
• SWOT Analysis - Actions to follow

What to do AFTER
Build on a Strength
SWOT?
 Correct a Weakness
 Exploit an Opportunity
 Avoid a Disaster-
Laden Threat
Slide 2-47
LO 2-5
 Step 2: Market-Product Focus and

Goal Setting
• Market Segmentation
• Points of Difference
Slide 2-48
LO 2-5
 Step 3: Marketing Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
Slide 2-49
The four Ps elements of the marketing mix
must be blended to produce
a cohesive marketing program
Slide 2-50
Summary 5 – 3 steps of planning
1. Situation Analysis by SWOT

– What is about – Co., Customers,
Competitors, Environment
– Purposes
– How to use
2. Segmentation/ Differentiation
3. Marketing Mixes/ Programs – 4P’s

Slide 2-51
Profit
Profit is the money left after a

for-profit organization subtracts its
total expenses from its total
revenues and is the reward for the
risk it undertakes in marketing its
offerings.
Slide 2-52
Strategy
Strategy is an organization’s
long-term course of action
designed to deliver a unique
customer experience while
achieving its goals.
Slide 2-53
Core Values
Core values are the fundamental,

passionate, and enduring
principles of an organization that
guide its conduct over time.
Slide 2-54
Mission
A mission is a statement of the

organization’s function in society
that often identifies its customers,
markets, products, and
technologies. The term is often
used interchangeably with vision.
Slide 2-55
Organizational Culture
An organizational culture
consists of the set of values,
ideas, attitudes, and norms of
behavior that is learned and
shared among the members of
an organization.
Slide 2-56
Business
A business describes the clear,

broad, underlying industry or
market sector of an organization’s
offering.
Slide 2-57
Goals or Objectives
Goals or objectives are the

statements of an accomplishment
of a task to be achieved, often by
a specific time.
Slide 2-58
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.
Slide 2-59
Marketing Plan
A marketing plan is a road map

for the marketing actions of an
organization for a specified future
time period, such as one year or
five years.
Slide 2-60
Business Plan
A business plan is a road map for

the entire organization for a
specified future period of time,
such as one year or five years.
Slide 2-61
Marketing Dashboard
A marketing dashboard is the

visual computer display of the
essential information related to
achieving a marketing objective.
Slide 2-62
Marketing Metric
A marketing metric is a measure

of the quantitative value or trend
of a marketing action or result.
Slide 2-63
Business Portfolio Analysis
Business portfolio analysis is a

technique that managers use to
quantify performance measures and
growth targets to analyze their firms’
strategic business units (SBUs) as
though they were a collection of
separate investments.
Slide 2-64
Diversification Analysis
Diversification analysis is a
technique that helps a firm search
for growth opportunities from
among current and new markets
as well as current and new
products.
Slide 2-65
Strategic Marketing Process
The strategic marketing process

is an approach whereby an
organization allocates its
marketing mix resources to reach
its target markets.
Slide 2-66
Situation Analysis
A situation analysis involves

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
marketing plans and the external
forces and trends affecting it.
Slide 2-67
SWOT Analysis
A SWOT analysis is an acronym

describing an organization’s
appraisal of its internal Strengths
and Weaknesses and its external
Opportunities and Threats.
Slide 2-68
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.
Slide 2-69
Points of Difference
Points of difference are those

characteristics of a product that
make it superior to competitive
substitutes.
Slide 2-70

Week 2 1819

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Week 2 1819

Uploaded by

Copyright:

Available Formats

© 2017 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.

Not authorized for sale or distribution in any manner.

Describe three kinds of organizations

Describe core values, mission,

Explain why managers use marketing

LO 2-4 Discuss how an organization assesses

LO 2-5 Explain the 3 steps of the planning

 Can’t Be “All Things to All People”

Disney’s Special Discount

(1) establish a foundation(core values), (2) set

 Business Model – watch out the myopia

2. (Priority of) Goals/ Objectives?

• Profit • Customer Satisfaction

• Sales ($ or #) • Employee Welfare

• Market Share • Social Responsibility

 Goals or Objectives: S.M.A.R.T

• Measurable (e.g. in $, market share, gross profit %)

• Relevant (to the mission)

• Sales – 15% increase?

• Market Share – 2% increase

– If we want to maintain share, we may growth the

• Corporate • SBU • Functional

 Variation by Products (or Offering)

• Each product/ brand operate as a SBU

Who are Giordano’s competitors?

 Business Portfolio Analysis (BCG Matrix)

Cash Cows Dogs

Apple Watch iPod

iPhone iPad/iPad mini

WHY such a move?

Cannot rely on one product

as it will grow old

• Diversification Ben & Jerry’s

• Diversification Analysis – 4 strategies, 2 dimensions

• Example of Sonatica Dashboards

Source: Dundas Data Visualization

• Marketing Metrics – quantified and

 Strategic Marketing Process

• How Do Our Results Compare

 Step 1: Situation (SWOT) Analysis

What SWOT covers?

 Step 1: Situation (SWOT) Analysis

• SWOT Analysis used for

 Assess the Organization

 Research Present and

 Step 1: Situation (SWOT) Analysis

• SWOT Analysis - Actions to follow

 Step 2: Market-Product Focus and

 Step 3: Marketing Program

• Place (Distribution) Strategy

1. Situation Analysis by SWOT

3. Marketing Mixes/ Programs – 4P’s

Profit is the money left after a

Core values are the fundamental,

A mission is a statement of the

A business describes the clear,

Goals or objectives are the

Market share is the ratio of sales

A marketing plan is a road map

A business plan is a road map for

A marketing dashboard is the

A marketing metric is a measure

Business portfolio analysis is a

The strategic marketing process