strategic marketing 9edi.chapter14
TRANSCRIPT
1. Imperatives for Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control
Strategic Marketing
Chapter 14
DesigningMarket-DrivenOrganizations
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
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Designing market-driven organizationsDesigning market-driven organizations
* Trends in organization designTrends in organization design
* Organizing for market-driven strategyOrganizing for market-driven strategy
* Marketing departmentsMarketing departments
* Structuring marketing resourcesStructuring marketing resources
* Organizing for global marketing and Organizing for global marketing and global customersglobal customers
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Designing market-driven organizationsDesigning market-driven organizations
* Procter and GambleProcter and Gamble
* Global restructuring to improve innovation and Global restructuring to improve innovation and competitivenesscompetitiveness
* Global business units for products and market Global business units for products and market development units to tackle local market issuesdevelopment units to tackle local market issues
* Change agents appointed to work across Change agents appointed to work across business unitsbusiness units
* Virtual innovation teams work through intranetVirtual innovation teams work through intranet
* Organization design supports clear strategies so Organization design supports clear strategies so all business disciplines can work togetherall business disciplines can work together
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Trends in organization design (1)Trends in organization design (1)
* The New OrganizationThe New Organization
* Traditional structuresTraditional structures* Centralized, vertical, “command and control”Centralized, vertical, “command and control”
* Organizational design shiftsOrganizational design shifts
* InnovationInnovation
* The knowledge-based workerThe knowledge-based worker
* Managing cultureManaging culture
* Collaborative workingCollaborative working
* Informal networksInformal networks
* Organizational diversity and external relationshipsOrganizational diversity and external relationships
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Organization costsOrganization costs
* Cadbury Schweppes - world’s largest Cadbury Schweppes - world’s largest confectionery businessconfectionery business
* Restructuring at cost of $900 millionRestructuring at cost of $900 million
* Organizational structure has become too Organizational structure has become too complex with too many overlapscomplex with too many overlaps
* Organizational costs account for 20% of Organizational costs account for 20% of turnover - compared to 12% at competitorsturnover - compared to 12% at competitors
* Reorganization is central to regaining Reorganization is central to regaining competitivenesscompetitiveness
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Trends in organization design (2)Trends in organization design (2)
* Managing organizational processesManaging organizational processes
* Organizational agility and flexibilityOrganizational agility and flexibility*ZaraZara
*ToyotaToyota
* Employee motivationEmployee motivation* ““MySpace Generation”MySpace Generation”
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Alternative Organizational Structures
TraditionalHierarchy
FunctionalStructure
ProcessOverlay
FunctionalOverlay
ProcessStructure
HorizontalStructure
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Process-based organizational structureProcess-based organizational structure
Processes that define valuee.g. knowledge management, CRM
Processes that create valuee.g. new product development,innovation
Processes that deliver valuee.g. logistics, customer service,value chain relationships
Specialist resource groups support processManagers e.g. functional departments,business units, external collaborators
ProcessLeadership
Resource Group Leadership
Coordinationmechanismsto linkprocess andresourceleadership
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The Toyota wayThe Toyota way
* Pillar IPillar I
*ChallengeChallenge
*Kaizen - continuous improvementKaizen - continuous improvement
*Genchi Genbutsu - go and see for Genchi Genbutsu - go and see for yourselfyourself
* Pillar IIPillar II
*RespectRespect
*TeamworkTeamwork
* EMEM22 - Everything Matters Exponentially - Everything Matters Exponentially
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The MySpace GenerationThe MySpace Generation
* Lives online - social networking sites are a way Lives online - social networking sites are a way of lifeof life
* Children of the babyboomersChildren of the babyboomers
* Ambitious, demanding and question Ambitious, demanding and question everythingeverything
* Work/life balance is very importantWork/life balance is very important
* Expected to be the highest maintenance Expected to be the highest maintenance workforce in history and the most high-workforce in history and the most high-performingperforming
* ““You raised them, now manage them”You raised them, now manage them”
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Organizing for market-driven strategy (1)Organizing for market-driven strategy (1)
* Strategic marketing and organization Strategic marketing and organization structurestructure
* Aligning the organization with the marketAligning the organization with the market
* Informal lateral integrationInformal lateral integration
* Integrating mechanismsIntegrating mechanisms
*Full customer alignmentFull customer alignment
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Customer-based front-end organizationCustomer-based front-end organization
Senior Management
Back-end Units Customer-basedFront-end Units
Product customers Solutions customers
Internal linkages
Shared planning and metrics
Mediationfrom thecenter
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Organizing for market-driven strategy (2)Organizing for market-driven strategy (2)
* Marketing functions versus marketing processesMarketing functions versus marketing processes
* Marketing as cross-functional processMarketing as cross-functional process
* The challenge of integrationThe challenge of integration
* Marketing’s links to other functionsMarketing’s links to other functions* Finance/accountingFinance/accounting* OperationsOperations* SalesSales* R&DR&D* Customer serviceCustomer service* Human resource managementHuman resource management
* Approaches to achieving effective integrationApproaches to achieving effective integration
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Marketing departmentsMarketing departments
* Centralization versus decentralizationCentralization versus decentralization
* Integration or diffusionIntegration or diffusion
* Contingencies for organizingContingencies for organizing
* Evaluating organizational designsEvaluating organizational designs
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TRANSACTIONALBUREAUCRATIC
ORGANIC RELATIONAL
Centralized FormalizedNonspecialized
Internal(hierarchical)Organizationof Activity
External(market)Organizationof Activity
DecentralizedNonformalizedSpecialized
Organizing Concepts
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Structuring marketing resources (1)Structuring marketing resources (1)
* Structuring issuesStructuring issues
* Functional organizational designFunctional organizational design
* Product-focused designProduct-focused design
* Product/brand managementProduct/brand management
* Category managementCategory management
* Venture teamsVenture teams
* New product teamsNew product teams
* Market-focused designMarket-focused design
* Matrix designMatrix design
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TRADITIONALDESIGNS
Functional
Matrix Product-Focused
Market-Focused
Traditional Marketing Organization Designs
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Product-Focused StructureProduct-Focused Structure
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Marketing Organization Based on a Marketing Organization Based on a Combination of Functions and ProductsCombination of Functions and Products
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Structuring marketing resources (2)Structuring marketing resources (2)
* New marketing rolesNew marketing roles
* New marketing specializationsNew marketing specializations
* Venture marketing organizationsVenture marketing organizations
* Partnering with other organizationsPartnering with other organizations
* Networked organizationsNetworked organizations
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New organizational structure for marketingNew organizational structure for marketing
Vice Presidentof Marketing
Director ofProduct
Management
ChiefCustomer
Officer
CustomerService
CustomerDatabase
MarketingResearch
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The Marketing Coalition CompanyThe Marketing Coalition Company
Source: Ravi S Achrol, “Evolution of the Marketing Organization: New Forms for TurbulentEnvironments”, Journal of Marketing, October 1991, 88.
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Organizing for global marketing and Organizing for global marketing and global customersglobal customers
* Organizing for global marketing strategiesOrganizing for global marketing strategies
*Business functionsBusiness functions
*Organizational issuesOrganizational issues
*Coordination and communicationCoordination and communication
* Organizing for global customersOrganizing for global customers
*The growth in global retailersThe growth in global retailers
*Global account management structuresGlobal account management structures
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Global account management at MicrosoftGlobal account management at Microsoft
* Single executive/team in charge of single Single executive/team in charge of single customer and all global needscustomer and all global needs
* Restricted to customers by revenue size but Restricted to customers by revenue size but also willingness/ability to partneralso willingness/ability to partner
* Senior managers encouraged to develop Senior managers encouraged to develop relationships with senior managers at global relationships with senior managers at global accountsaccounts
* Global business managers work across Global business managers work across business units, functions and organizationsbusiness units, functions and organizations