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Introduction – Successful Marketing / Organization Strategies LO1 LO2 1-2 LO3 LEARNING OBJECTIVES (LO) After reading Chapter 2, you should be able to : Describe the kinds of organizations that exist and the three levels of strategy in them. Describe how core values, mission, organizational culture, business, and goals are important to organizations. Explain how organizations set strategic directions by assessing where they are now and seek to be in the future.

LO4 LO5 1-3 LEARNING OBJECTIVES (LO) After reading Chapter 2, you should be able to : Describe the strategic marketing process and its three key phases: planning, implementation, and evaluation. Explain how the marketing mix elements are blended into a cohesive marketing program. Introduction – Successful Marketing / Organization Strategies

From Rice Cookers to Technology Leaders Sony: A Marketing Genius Opening Story – Rice Cooker 1-4

Types of Organisations Today’s World Organizations and the three Levels of Strategy 1-5 LO1 Non-Profit Organisations Organisations Business Firms

Levels and Teams Today’s World Organizations and the three Levels of Strategy 1-6 LO1 Corporate Units Functional Teams Cross-Functional Teams

Organizations and the three Levels of Strategy 1-7 LO1 Levels and Teams Three levels of strategy

Strategy in Organisations The Foundations of Organisations Values, Mission, Culture, Business and Goals 1-8 LO2 Core Values Stakeholders Mission / Vision Organizational Culture Why are these Important?

1-9 Values, Mission, Culture, Business and Goals LO2 ‘Rising Figure’ Mural What does it mean to Medtronic’s Stakeholders Find out what Medtronic’s mission is

Strategy in Organisations The Foundations of Organisations: Why? Values, Mission, Culture, Business and Goals 1-10 LO2 The Business Who are we? What do we do? The Mission / Vision Why do we do what we do? Organizational Culture What do we want our stakeholders to believe in?

Strategy in Organisations Direction: What? Values, Mission, Culture, Business and Goals 1-11 LO2 Objectives / Goals Profit Sales Market Share Quality Customer Satisfaction Employee Welfare Social Responsibility Efficiency

Strategic Directions Where are we now Strategic Directions: From now to the future 1-12 LO3 Competencies What do we do best? Competitive Advantage? Fast Cycle Time Quality Benchmarking

Giordano Int’l Ltd (Hong Kong) 1-13 Strategic Directions: From now to the future LO3

1-14 Strategic Directions: From now to the future LO3

Strategic Directions Where do we want to go? Strategic Directions: From now to the future 1-15 LO3  Growth Strategies: Where Do We Want to Go? Business Portfolio Analysis (BCG) Market Growth Rate Relative Market Share Cash Cows / Question Marks / Stars / Dogs Market-Product Analysis

Strategic Directions Where do we want to go? Strategic Directions: From now to the future 1-16 LO3  BCG Business Portfolio Analysis: Placing different SBUs into Quadrants

Kodak Consumer Products Classify: Which BCG Growth-Share Matrix? Strategic Directions: From now to the future 1-17 LO3

Kodak Consumer Products BCG Portfolio Analysis for 2003 (red) / 2012 (projected, white) Strategic Directions: From now to the future 1-18 LO3

Strategic Directions Where do we want to go? Strategic Directions: From now to the future 1-19 LO3  Growth Strategies: Where Do We Want to Go? Market-Product Analysis Market Penetration Market Development Product Development Diversification

Strategic Directions Tracking with Marketing Dashboards Strategic Directions: From now to the future 1-20 LO3  Car Dashboards and Marketing Dashboards Car Dashboards and Marketing Dashboards  Marketing Plan Marketing Plan  Marketing Metrics and Graphics in Designing Marketing Dashboards Marketing Metrics and Graphics in Designing Marketing Dashboards

Strategic Directions: From now to the future 1-21 LO3 Marketing Dashboards Dashboards help managers assess a business situation at a glance

Strategic Marketing How do we get to where we want to go? Strategic Marketing: Planning, Implementation, Evaluation 1-22 LO4  Strategic Marketing Process 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 Marketing Plan

1-23 FIGURE 2-7 FIGURE Phases of Strategic Marketing Strategic Marketing: Planning, Implementation, Evaluation LO4

Strategic Marketing The Planning Process Strategic Marketing: Planning, Implementation, Evaluation 1-24 LO4 Step 1: Situational (SWOT) Analysis Step 2: Market-Product Focus and Goal Setting Step 3: Marketing Program

Strategic Marketing Planning Step 1: SWOT Situation Analysis Strategic Marketing: Planning, Implementation, Evaluation 1-25 LO4  Step 1: Situation (SWOT) Analysis  Analyze Competitors  Identify Industry Trends  Research Present and Prospective Customers  Assess the Organization

Strategic Marketing Planning Step 1: SWOT Situation Analysis Strategic Marketing: Planning, Implementation, Evaluation 1-26 LO4  Step 1: Situation (SWOT) Analysis  Correct a Weakness  Build on a Strength  Avoid a (potentially) disastrous Threat  Exploit an Opportunity

Strategic Marketing: Planning, Implementation, Evaluation 1-27 LO4 FIGURE 2-8 FIGURE 2-8 GIORDANO’S SWOT ANALYSIS

Strategic Marketing Planning Step 2: Market-Product Focus & Goal Setting Strategic Marketing: Planning, Implementation, Evaluation 1-28 LO4 Set Marketing & Product Goals Select Target Markets Find Points of Difference Position the Product  Example: Medtronic’s Pacemaker

Strategic Marketing Planning Step 3: The Marketing Program Constructing a cohesive Marketing Program from Marketing Mix elements 1-29 LO5 Product Strategy Price Strategy Promotion Strategy Place (Distribution) Strategy  Step 3: Marketing Program

Constructing a cohesive Marketing Program from Marketing Mix elements 1-30 LO5 FIGURE 2-9 FIGURE 2-9 Elements of the marketing mix that comprise a cohesive marketing program

Strategic Marketing The Implementation Phase Constructing a cohesive Marketing Program from Marketing Mix elements 1-31 LO5  Obtaining Resources  Designing the Marketing Organization  Developing Schedules  Executing the Marketing Program Marketing Strategy Marketing Tactics

Constructing a cohesive Marketing Program from Marketing Mix elements 1-32 LO5 FIGURE 2-10 FIGURE 2-10 Organization of a typical manufacturing firm showing a breakdown of the marketing department

Strategic Marketing The Implementation Phase Constructing a cohesive Marketing Program from Marketing Mix elements 1-33 LO5  Executing the Marketing Program Marketing Strategy Marketing Tactics

Kodak EasyShare Cameras in China What Strategies / Tactics are used? Constructing a cohesive Marketing Program from Marketing Mix elements 1-34 LO5

Strategic Marketing The Evaluation (Control) Phase Constructing a cohesive Marketing Program from Marketing Mix elements 1-35 LO5  Comparing Results With Plans to Identify Deviations  Acting on Deviations Planning Gap Exploiting a Positive Deviation Correcting a Negative Deviation