university of washington emba program puget sound 19 marketing management “outward orientation and...
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![Page 1: University of Washington EMBA Program Puget Sound 19 Marketing Management “Outward Orientation and Industry Structure” Instructor: Elizabeth Stearns](https://reader035.vdocument.in/reader035/viewer/2022072015/56649ec75503460f94bd2aa9/html5/thumbnails/1.jpg)
University of Washington EMBA ProgramPuget Sound 19
Marketing Management
“Outward Orientation and
Industry Structure”
Instructor: Elizabeth Stearns
![Page 2: University of Washington EMBA Program Puget Sound 19 Marketing Management “Outward Orientation and Industry Structure” Instructor: Elizabeth Stearns](https://reader035.vdocument.in/reader035/viewer/2022072015/56649ec75503460f94bd2aa9/html5/thumbnails/2.jpg)
Market Orientation and Organizations
• The way an organization thinks about the nature and conduct of organizational activities
• A paradigm which permeates all aspects of organizational philosophy, structure, and conduct
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Finance Product/Technology
Production/Manufacturing
Alternate Inward Orientations
Sales
Marketing
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Reward Systems Desire for Stability
Dominant Culture
Pressures for an Inward Orientation
Pressures for Efficiency• Fixed Investment• Task Specialization
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Pressures for Inward Orientation
• Organizational Structure– Task specialization– Reward systems
• Culture & Inertia– Cost of organizational change– Stakeholder influence
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Market or Outward Orientation
• Organization wide generation and implementation of market intelligence– Strategy: Develop organizational plans– Implementation: Executing the initiatives
• Set of processes touching all aspects of the organization– Information on all important buying influences
permeates every organizational function– Strategic and tactical decisions are made
interfunctionally and interdivisionally
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Functional Structures
CEO
VP Finance
VP Operation
sVP R&D
VP Sales/ Marketing
VP Human Resources
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Differing Organizational Perspectives
Consensus
Marketing
Finance
Human Resources R & D
Operations
Sales
Contention
Creativity
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Finance Product/Technology
Production/Manufacturing
Alternate Inward Orientations
Sales
Marketing
![Page 10: University of Washington EMBA Program Puget Sound 19 Marketing Management “Outward Orientation and Industry Structure” Instructor: Elizabeth Stearns](https://reader035.vdocument.in/reader035/viewer/2022072015/56649ec75503460f94bd2aa9/html5/thumbnails/10.jpg)
“Market Orientation,” Heiens
• Approaches– Customer focus: “Customer Preoccupied”
• Focus on current and future customer needs
– Competitor focus: “Marketing Warriors”
• Focus on competitive core competencies, technologies, and tactical implementations
• Consider equal emphasis: customer and competitor– “Strategically Integrated” (“Strategically inept”)
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Creating the Outward Oriented Firm
Organizational Structure
Organizational Mission, Culture & Values
Systems
Strategy
Human Resource Management
CustomersCompetitor
sCollaborato
rs
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Performance Indicators
Pre-Sale
Financial Oriented Volume Oriented
Sale
Post-Sale
Awareness
Attitude
Purchase Intention Dollars (Nominal, Real)
Units
Growth Market Share
Trial, Repeat
Contribution Bottom Line
Profit
Cash Generated
Gross Spreads
Return on Investment
Customer Satisfaction
Consideration
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Hierarchy of Strategy
Corporate
Strategic Business Unit (SBU)
Product-Market
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Setting Objectives
• PurposePurpose
To identify the results we wish to achieve in the market segments and provide a platform for measurement and evaluation.
• Types of Marketing Objectives
– Strategic: Qualitative and directional
– Operational: Quantitative and time dependent (SMART)
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Objectives Statements
• Our primary objective in the loudspeaker market is to grow market share from 25% to 30% by stealing share from competitors in 2002 while maintaining margins at 23%. (What is wrong with this?)
• Our task is to generate $70 million cash flow from mainframes in both 2001 and 2002, while maintaining dollar-denominated market share at 45%.
– Primary objectives are most important– Secondary objectives are relevant and desirable, but
tradeoffs for primary objectives are acceptable
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Using Objectives
• Write an operational marketing objective• Project all viable alternatives onto the dimension of the
objective use expected value of outcome• Measure the “attractiveness” of each alternative according
to whether/the degree to which it satisfies your operational marketing objective– If only 1 alternative meets your objective—choose it– If 2 or more alternatives meet your objective…
• Choose the one which performs best on the dimension underlying your objective
• Move to “tiebreaker” criteria– Risk/variance in performance– Cost– “Fit”– Etc.
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Thank You!