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DEVELOPING

SUCCESSFUL

MARKETINGAND

CORPORATE

STRATEGIES

CHAPTER

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DEFINITION OF ORGANIZATIONS

Profit

Business Firm

Organizations as defined by profit

Nonprofit Organization

Both commonly referred to asthe Firm

the Company

the Corporation

the Organization

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ORGANIZATIONS LEVELS OF STRATEGY

Corporate Level-create value for stockholders

Functional Levelexecute plan on daily basis

Business Unit Level- plan direction for each SBU

Department-specialized functions of daily operation

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Mission -statement of the organizations purpose

for existing, often identifying its customers,

markets, products, technology, and values.

Goals or Objectives

Quality

Profit

Sales

Market Share

Customer Satisfaction

Employee Welfare

Social Responsibility

FOCUS OF THE STRATEGY

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SETTING STRATEGIC DIRECTIONS

Competencies-identify what you do best

A Look Around: Where Are We Now?

Identify your Customers

Competitive Advantage-your unique strength

Competitors-identify the biggest threats

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SETTING STRATEGIC DIRECTIONS

Growth Strategies: Where Do We Want to Go?

Business Portfolio Analysis (BCG Matrix)

Relative Market Share-horizontal axis

Market Growth Rate-vertical axis

Cash Cows(LH)

Stars

(HH)

Dogs(LL)

Question Marks or Problem Children

(HL)

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Boston Consulting Group portfolio analysis for

Kodak sbus in 2003

Kodak self-

service kiosk

Kodak film sales: US,

Canada, & W. Europe

Kodak digital

photo printer

Kodak digital

camera

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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

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Four market-product strategies: alternative ways

to expand sales revenues for Ben & Jerrys

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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

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Step 1: SWOT Analysis

THE STRATEGIC MARKETING

PROCESS -The Planning Phase

GOOD NOW

Maintain & build

GOOD FUTUREPrioritize &

optimize

BAD NOWRemedy or stop

BAD FUTURE

Intercept and

counter

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Ben & Jerrys: SWOT analysis

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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

Which Product-Which Customers

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Step 3: Marketing Program

Product Strategy

Price Strategy

Promotion Strategy

Place (Distribution) Strategy

Marketing Program Strategy

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Elements of the marketing mix that comprise a

cohesive marketing program

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Obtaining Resources

Designing the Marketing Organization

-delegating who does what

Developing Schedules-Linear or Gantt

THE STRATEGIC MARKETING PROCESS-

The Implementation Phase

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Tasks to complete a term project

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Gantt chart for scheduling the term project

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Comparing Results With Plans to Identify Deviations

Acting on Deviations

Filling the Planning GapMarketings Job

THE STRATEGIC MARKETING PROCESS-

The Control Phase

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Evaluation & control of Kodaks marketing program

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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.

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Mission is a statement of the

organizations scope, often identifying its

customers, markets, products, technology,

and values.

Mission

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Goals orobjectives convert the mission

into targeted levels of performance to be

achieved, often by a specific time.

Goals or Objectives

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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.

Market Share

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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.

Marketing Plan

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SWOT analysis is an acronym describing

an organizations appraisal of its internal

Strengths and Weaknesses and its

external Opportunities and Threats.

SWOT Analysis

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Market segmentation involves

aggregating prospective buyers into

groups, or segments, that (1) have

common needs and (2) will respond

similarly to a marketing action.

Market Segmentation

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Points of difference are those

characteristics of a product that make it

superior to competitive substitutes.

Points of Difference