developing successful marketing and corporate strategies c hapter
TRANSCRIPT
DEFINITION OF ORGANIZATIONS
• Profit
Business Firm
• Organizations as defined by profit
Nonprofit Organization
Both commonly referred to as the Firm the Company the Corporationthe Organization
ORGANIZATION’S LEVELS OF STRATEGY
Corporate Level-create value for stockholders
Functional Level –execute plan on daily basis
Business Unit Level- plan direction for each SBU
Department-specialized functions of daily operation
Mission -statement of the organization’s 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
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
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)
Boston Consulting Group portfolio analysis for Kodak sbu’s in 2003
Kodak self-service kiosk
Kodak film sales: US,Canada, & W. Europe
Kodak digitalphoto printer
Kodak digitalcamera
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
THE STRATEGIC MARKETING PROCESS
• How do we allocate our resources to get wherewe 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
Step 1: SWOT Analysis
THE STRATEGIC MARKETING PROCESS -The Planning Phase
GOOD NOWMaintain & build
GOOD FUTUREPrioritize & optimize
BAD NOWRemedy or stop
BAD FUTUREIntercept and counter
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
Step 3: Marketing Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
Marketing Program Strategy
Obtaining Resources
Designing the Marketing Organization-delegating who does what
Developing Schedules-Linear or Gantt
THE STRATEGIC MARKETING PROCESS-The Implementation Phase
Comparing Results With Plans to Identify Deviations
Acting on Deviations
• Filling the Planning Gap – Marketing’s Job
THE STRATEGIC MARKETING PROCESS-The Control Phase
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 firm’s total expenses are subtracted from its total sales.
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 firm’s total expenses are subtracted from its total sales.
Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.
Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.
Mission
Goals or objectives convert the mission into targeted levels of performance to be achieved, often by a specific time.
Goals or objectives convert the mission into targeted levels of performance to be achieved, often by a specific time.
Goals or Objectives
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 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
A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the target market.
A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the target market.
Marketing Plan
SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
SWOT Analysis
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 involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Market Segmentation