Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -1 “The greatest strategy is doomed if it’s implemented badly.” – Bernard Reimann Implementing Strategies

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -2 Less than 10% of strategies formulated are successfully implemented! The Nature of Strategy Implementation

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -3

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -4 Market segmentation Product positioning Marketing Issues

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -5 Subdividing of a market into distinct subsets of customers according to needs and buying habits Marketing Issues Market Segmentation

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -6 Market Segmentation Table 8.3 Market Segment Basis Psychographic Behavioral Geographic Demographic

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -7 Product Place Promotion Price Marketing Mix Variables Table 8.2

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -8 Marketing Issues Schematic representations that reflect how products/services compare to competitors’ on dimensions most important to success in the industry Product Positioning

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -9 Product-Positioning Map for Menswear Retail Stores Very latest, fashionable menswear Conservative, everyday menswear Low PriceHigh Price Average department store Average specialty chain Average mass merchandiser or discounter

Evaluating the Worth of a Business Three main approaches: What a firm owns What a firm earns What a firm will bring in the market 8-10 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch Evaluating Worth of a Business Net worth or stockholder’s equity Net profit – conservative value would be five times the firm’s current annual profits Price-earnings ratio method Outstanding shares method

Evaluating the Worth of a Business The first approach is determining a firm’s net worth or stockholders’ equity The second approach is based on the future benefits a firm’s owners may derive through net profits 8-12 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Evaluating the Worth of a Business The third approach is to divide the market price of the firm’s common stock by the annual earnings per share and multiply this number by the firm’s average net income for the past five years Also called the price-earnings ratio method 8-13 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Evaluating the Worth of a Business The fourth method is to simply multiply the number of shares outstanding by the market price per share Also called the outstanding shares method 8-14 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Business Value A good rule of thumb for evaluating a business is an organizations current annual profit times five. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -15