Third Edition Roger A. Kerin Lau Geok Theng Steven W. Hartley William Rudelius Copyright © 2015 by McGraw-Hill Education. All rights reserved.

Copyright © 2015 by McGraw-Hill Education. All Rights Reserved.

LEARNING OBJECTIVES After reading Chapter 22, you should be able to: LO 22-1 Explain how marketing managers allocate resources. Describe Porter’s generic business strategies synergy analysis planning frameworks. LO 22-2 Explain what makes an effective marketing plan. LO 22-3 22-2 Implementing Interactive & Multichannel Marketing

LEARNING OBJECTIVES After reading Chapter 22, you should be able to: LO 22-4 Use a time-based agenda and an action item list to conduct a meeting. Describe an organization’s marketing department and the role of a product manager. LO 22-5 LO 22-6 Explain the use of marketing ROI, metric and dashboard in evaluating marketing programs. 22-3 Implementing Interactive & Multichannel Marketing

Searching for a Turnaround Strategy to Stem Losses Acer Searching for a Turnaround Strategy to Stem Losses 22-4 Opening Story - Acer

Marketing Basics: Doing What Works Finding and Using what Really Works Strategy: Clearly stated and focused Execution: Flawless operations Kaizen Culture: Performance-oriented Structure: Fast, flexible, and flat LO 22-1 22-5 Allocating Resources for Marketing

Marketing Basics: Allocating Resources Using Sales Response Functions Maximizing incremental revenue minus incremental cost A numerical example of resource allocation Year 1 Year 4 LO 22-1 22-6 Allocating Resources for Marketing

A sales response function shows the impact on sales at various levels of marketing effort LO 22-1 22-7 Allocating Resources for Marketing

Marketing Basics: Allocating Resources Using Sales Response Functions Allocating marketing resources in practice Share points - Need estimates of: Market share Gross margin Revenues Cannibalization LO 22-1 22-8 Allocating Resources for Marketing

The actions in the strategic marketing process are supported and directed by detailed reports, studies, and memos LO 22-1 22-9 Allocating Resources for Marketing

Marketing Basics: Allocating Resources Using Sales Response Functions Resource allocation and the strategic marketing process Output report LO 22-1 22-10 Allocating Resources for Marketing

The Strategic Marketing Process The Use of Marketing Metrics “If You Don’t Where You’re Going, Any Road Will Get You There.” Marketing metrics Input metrics Output metrics LO 22-1 22-11 Allocating Resources for Marketing

The Strategic Marketing Process The Variety of Marketing Plans Long-range marketing plans Annual marketing plans LO 22-1 22-12 Allocating Resources for Marketing

The Strategic Marketing Process Marketing Planning Frameworks 1. Porter’s generic business strategies Cost leadership strategy Differentiation strategy Cost focus strategy Differentiation focus strategy LO 22-2 22-13 Three Marketing Planning Frameworks

Porter’s four generic business strategies LO 22-2 22-14 Three Marketing Planning Frameworks

Which of Porter’s Generic Business Strategy Is Each Using? Daiso & The Toyota Yari Which of Porter’s Generic Business Strategy Is Each Using? LO 22-2 22-15 Three Marketing Planning Frameworks

The Strategic Marketing Process Market Product Synergies Marketing synergy R&D-manufacturing synergy LO 22-2 22-16 Three Marketing Planning Frameworks

Planning the Strategic Marketing Process Market Product Synergies Market-product concentration Market specialization Product specialization Selective specialization Full coverage LO 22-2 22-17 Three Marketing Planning Frameworks

Market-product grids show alternative strategies for a lawnmower manufacturer LO 22-2 22-18 Three Marketing Planning Frameworks

Where are the Synergies? Marketing Matters Where are the Synergies? 1. Where are the marketing synergies? 2. Where are the R&D-manufacturing synergies? 3. What is the ideal market-product grid for a merger? LO 22-2 22-19 Three Marketing Planning Frameworks

The ideal merger for Great Lakes to obtain full market-product coverage LO 22-2 22-20 Three Marketing Planning Frameworks

The Strategic Marketing Process Marketing Planning & Strategy Lessons Guidelines for an effective marketing plan Set measurable, achievable goals Use a base of facts and assumptions Utilize simple, but clear and specific plans Have complete and feasible plans Make plans controllable and flexible Find the right person to implement the plan Work towards consensus building 22-21 LO 22-3 Components of an Effective Marketing Plan

The Strategic Marketing Process Problems in Marketing Planning & Strategy Marketing planning & strategy problems Plans based on poor assumptions Planners lost sight of customer needs Too much time and effort on collecting data and writing plans Line operating managers have no ownership in implementing plans LO 22-3 22-22 Components of an Effective Marketing Plan

The Strategic Marketing Process Marketing Planning & Strategy Lessons Global strategies Reaching new global markets New product ideas from anyone, anywhere around the world LO 22-3 22-23 Components of an Effective Marketing Plan

The Strategic Marketing Process Balancing Value and Values Balancing value and values in strategic marketing plans Value-based planning Value-driven strategies Recognize and incorporate disruptive innovation and long range marketing plans LO 22-3 22-24 Components of an Effective Marketing Plan

Ask Disruptive Questions to Achieve Disruptive Innovation Marketing Matters Ask Disruptive Questions to Achieve Disruptive Innovation 1. Ask “What is” questions 2. Ask “What caused” questions 3. Ask “Why” and “Why not” questions 4. Ask “What if” questions LO 22-3 22-25 Components of an Effective Marketing Plan

The Strategic Marketing Process Is the Problem Strategy or Implementation? When objectives are not achieved, where is the problem? The strategy and strategic idea The strategy and strategic idea Implementation of the strategy – poor execution Both LO 22-3 22-26 Components of an Effective Marketing Plan

The Strategic Marketing Process Is the Problem Strategy or Implementation? LO 22-3 22-27 Components of an Effective Marketing Plan

Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Communicate goals and the means to achieve them Have a program champion willing to act Product or program champion Akio Morita – the product champion for Sony Walkman Reward successful program implementation but do not punish failures LO 22-3 22-28 Components of an Effective Marketing Plan

Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Take action and avoid paralysis of analysis Make prompt decisions Avoid paralysis due to too much analysis LO 22-3 22-29 Components of an Effective Marketing Plan

Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Foster open communications to surface problems Surface problems immediately Get help—Don’t keep problems to yourself QCCs or WITs LO 22-3 22-30 Components of an Effective Marketing Plan

Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Schedule precise tasks, responsibilities, and deadlines Action item list Program schedules Gantt chart LO 22-4 22-31 Gantt Charts

Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks LO 22-4 22-32 Gantt Charts

This organization of a strategic business unit in a typical consumer packaged goods firm shows two product or brand groups: biscuit mixes and refrigerated biscuits LO 22-5 22-33 Organizing a Marketing Department / The Role of a Product Manager

Implementing the Strategic Marketing Process Organizing for Marketing Evolving role of the Chief Marketing Officer (CMO) Line verses staff positions Divisional groupings Functional groupings Product line groupings Geographical groupings Market-based groupings Matrix structure LO 22-5 22-34 Organizing a Marketing Department / The Role of a Product Manager

Implementing the Strategic Marketing Process Organizing for Marketing Key roles of the product or brand manager Product or brand groups are the basic building blocks in the marketing department of many companies Product or brand managers are responsible for planning, implementing and evaluating the annual marketing plans and long range plans. May champion for products or brands but often do not have sufficient authority. LO 22-5 22-35 Organizing a Marketing Department / The Role of a Product Manager

Evaluating the Strategic Marketing Process Marketing Evaluation Process Identifying deviations from goals Acting on deviations from goals Management by exception Actual results exceed goals Actual results fall short of goals LO 22-6 22-36 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

The evaluation phase of the strategic marketing process ties results and actions to goals using marketing metrics and dashboards LO 22-6 22-37 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Evaluating the Strategic Marketing Process Marketing Evaluation Process “Hiring a milkshake” and digging beneath the numbers Numbers can hide what’s really happening With Services, Measuring Results That Lead to Actions Becomes More Intangible LO 22-6 22-38 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Evaluating the Strategic Marketing Process Marketing Evaluation Process Marketing ROI Marketing metrics Marketing dashboards LO 22-6 22-39 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Monitoring the Performance of Warm Delights Mini Marketing Dashboard Monitoring the Performance of Warm Delights Mini LO 22-6 22-40 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Monitoring the Performance of Warm Delights Mini Marketing Dashboard Monitoring the Performance of Warm Delights Mini LO 22-6 22-41 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Monitoring the Performance of Warm Delights Mini Marketing Dashboard Monitoring the Performance of Warm Delights Mini LO 22-6 22-42 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Monitoring the Performance of Warm Delights Mini Marketing Dashboard Monitoring the Performance of Warm Delights Mini LO 22-6 22-43 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses

Monitoring the Performance of Warm Delights Mini Marketing Dashboard Monitoring the Performance of Warm Delights Mini LO 22-6 22-44 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses