Principles of Marketing - UNBSJ BA 2303 Principles of Marketing - UNBSJ Developing Successful Marketing Strategies Instructor – Terry Conrod

Learning Objectives BA 2303 Describe the three organizational levels of strategy. Describe why business, mission, culture, and goals are important in organizations. Explain how organizations set strategic directions by assessing where they are now and seek to be in the future. Describe the strategic marketing process and its three key phases: planning, implementation, and control. Explain how the marketing mix elements are blended into a cohesive marketing program.

LEVELS OF STRATEGY IN ORGANIZATIONS BA 2303 LEVELS OF STRATEGY IN ORGANIZATIONS Today’s Organizations: Kinds, Levels, and Teams Kinds of Organization Business firms Non-profit organizations Levels in Organizations and How Marketing Links to Them Corporate level Business unit Business unit level Functional level Where Things Happen: Functional Areas and Cross-Functional Teams

FIGURE 2-1 The three levels of strategy in organizations BA 2303 FIGURE 2-1 The three levels of strategy in organizations

LEVELS OF STRATEGY IN ORGANIZATIONS BA 2303 LEVELS OF STRATEGY IN ORGANIZATIONS Strategy Issues in Organizations The Business Definition The Mission Organizational Culture Stakeholders

Mission of the Holiday Inn Burlington BA 2303

LEVELS OF STRATEGY IN ORGANIZATIONS BA 2303 LEVELS OF STRATEGY IN ORGANIZATIONS Strategy Issues in Organizations Goals or Objectives (cont.) Profit Sales revenue Market share Unit sales Quality Customer satisfaction Employee welfare Social responsibility

What are the three levels in today’s large organizations? BA 2303 Concept Check What are the three levels in today’s large organizations? Answer: The three levels of strategy in organizations are corporate, business unit, and functional.

BA 2303 Concept Check What is the difference between an organization’s mission and its culture? Answer: A mission statement identifies the organization's scope including its customers, markets, products, technology, and values. In contrast, a culture which can exist at the corporate, business unit, or functional level is a system of shared values, attitudes, and behaviours that distinguish it from others.

BA 2303 Concept Check Give an example of a goal for a business and a goal for a non-profit organization. Answer: An example of a goal for a business might be "to increase annual profits by 20% in 20XX (current year)." In comparison, an example of a goal for a non-profit organization might be "to increase donations by 20% since the last major fundraising effort."

SETTING STRATEGIC DIRECTIONS BA 2303 SETTING STRATEGIC DIRECTIONS A Look Around: Where Are We Now? Customers Competencies Competitive advantage Quality Benchmarking Competitors

SETTING STRATEGIC DIRECTIONS BA 2303 SETTING STRATEGIC DIRECTIONS Growth Strategies: Where Do We Want to Go? Business Portfolio Analysis BCG Analysis

Boston Consulting Group portfolio analysis. BA 2303 Boston Consulting Group portfolio analysis.

SETTING STRATEGIC DIRECTION BA 2303 SETTING STRATEGIC DIRECTION Growth Strategies: Where Do We Want to Go? (cont.) Market-Product Analysis

Four market-product strategies BA 2303

What are “competencies” and why are they important? BA 2303 Concept Check What are “competencies” and why are they important? Answer: Competencies are an organization's special capabilities, including the skills, technologies, and resources that distinguish it from other organizations. Exploiting these competencies may lead to an organization's success.

What is business portfolio analysis? BA 2303 Concept Check What is business portfolio analysis? Answer: Business portfolio analysis is the understanding of a firm's strategic business units (SBU's) as though they were a collection of separate investments.

What are the four market-product strategies? BA 2303 Concept Check What are the four market-product strategies? Answer: The four market-product strategies are: • Market penetration • Product development • Market development • Diversification

THE STRATEGIC MARKETING PROCESS BA 2303 THE STRATEGIC MARKETING PROCESS Strategic Marketing Process: The Planning Phase Step 1: Situation Analysis SWOT Step 2: Market-Product Focus and Goal Setting Set marketing and product goals Select target markets Find points of difference Position the product Step 3: Marketing Program Product, Price, Promotion & Place (distribution) strategies

Strategic Marketing Process BA 2303 Strategic Marketing Process

Ben & Jerry’s: a SWOT analysis to get it growing in Canada BA 2303

BA 2303 Elements of the marketing mix that comprise a cohesive marketing program

BA 2303 Concept Check What is the difference between a strength and an opportunity in a SWOT analysis? Answer: In a SWOT analysis, a strength is a favourable evaluation of the internal situation at the level of the entire organization, the business unit, the product line, or the specific product. An opportunity is a favourable evaluation of the external situation at the level of the entire organization, the business unit, the product line, or the specific product.

What is market segmentation? BA 2303 Concept Check What is market segmentation? Answer: Market segmentation is the process of aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

What are “points of difference” and why are they important? BA 2303 Concept Check What are “points of difference” and why are they important? Answer: Points of difference are those characteristics of a product that make it superior to competitive substitutes. This concept is the single most important factor in the success or failure of a new product.

STRATEGIC MARKETING PROCESS BA 2303 STRATEGIC MARKETING PROCESS Strategic Marketing Process: The Implementation Phase Obtaining Resources Designing the Marketing Organization Developing Schedules Executing the Marketing Program Marketing strategy Marketing tactics

BA 2303 Organization of a typical manufacturing firm showing a breakdown of the marketing department

STRATEGIC MARKETING PROCESS BA 2303 STRATEGIC MARKETING PROCESS Strategic Marketing Process: The Control Phase Comparing Results with Plans to Identify Deviations Correcting a negative deviation Exploiting a positive deviation

What is the control phase of the strategic management process? BA 2303 Concept Check What is the control phase of the strategic management process? Answer: The control phase of the strategic marketing process seeks to keep the marketing program moving in the direction set for it.

BA 2303 Concept Check How do the objectives set for a marketing process in the planning phase relate to the control phase of the strategic marketing process? Answer: In the control phase, the marketing manager (1) compare the results of the marketing program with the goals in the written plans to identify deviations and (2) to act on these deviations--correcting negative deviations and exploiting positive ones.

BA 2303 Profit The reward to a business firm for the risk it undertakes in offering a product for sale; the money left over after a firm’s total expenses are subtracted from its total revenues.

BA 2303 Corporate level The corporate level is where top management directs overall strategy for the entire organization.

BA 2303 Business Unit The business unit refers to an organization that markets a set of related products to a clearly defined group of customers.

BA 2303 Business Unit Level The business unit level is the level at which business unit managers set the direction for their products and markets.

BA 2303 Functional Level The functional level is where groups of specialists actually create value for the organization.

Cross-Functional Teams BA 2303 Cross-Functional Teams Cross-functional teams include a small number of people from different departments in an organization who are mutually accountable to a common set of performance goals.

BA 2303 Mission A mission is a statement of the organization’s scope.

BA 2303 Stakeholders Stakeholders are individuals or groups within or outside an organization that relate to what it does and how well it performs.

BA 2303 Goals Goals or objectives convert the mission into targeted levels of performance to be achieved.

BA 2303 Market Share Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry.

BA 2303 Competencies Competencies are an organization’s special capabilities, including skills, technologies, and resources.

Competitive Advantage BA 2303 Competitive Advantage A competitive advantage is a unique strength relative to competitors.

BA 2303 Quality Quality means the features and characteristics of a product that influence its ability to satisfy customer needs.

BA 2303 Benchmarking Benchmarking is discovering how others do something better than your own firm so you can imitate or leapfrog competition.

Strategic Marketing Process BA 2303 Strategic Marketing Process The strategic marketing process is how an organization allocates its marketing mix resources to reach its target markets.

BA 2303 Marketing Plan A road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.

BA 2303 Situation Analysis Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.

BA 2303 SWOT Analysis An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

BA 2303 Market Segmentation Market segmentation is the process of aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

BA 2303 Points of Difference Points of difference are those characteristics of a product that make it superior to competitive substitutes.

BA 2303 Marketing Strategy A marketing strategy is the means by which a marketing goal is to be achieved.

BA 2303 Marketing Tactics Marketing tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies.

BA 2303 Objectives Convert the mission into targeted levels of performance to be achieved.

Organizational Culture BA 2303 Organizational Culture A set of values, ideas, and attitudes that is learned and shared among the members of an organization.