1. Marketing and corporate strategies

2. Kinds of organizations
Profit organizations. A privately owned organization that serves its customers in order to earn a profit
Nonprofit organizations. A nongovernmental organization that serves its customers but does not have a profit as an organizational goal.

3. Levels in organizations
Corporate level. Where top management directs overall strategy for the entire organization.
Business Unit Level. Level at which business unit managers set direction for their products and markets.
Functional level. Is where groups of specialists create value for the organization. (i.e. departments)

4. Three levels of strategy in an organization
Corporate strategy
Vision
Corporate goals
Philosophy and culture
Business unit strategy
Mission
Business goals
Competencies
Functional strategy
Information
systems
Research &
development
Manufacturing
Finance
Marketing
Human resources

5. Combination of Customer Relationships
The
Organization’s
Success
Quality
Efficiency
Customer
Innovation
Relationships

6. Strategy at the corporate level

7. Corporate vision is
a clear word picture of the organization’s future, often with an inspirational theme.
It sets the overall direction for the organization, describing what it strives to be--stretching the organization, but not beyond reason.

8. a targeted level of performance set in advance of work.
A goal is
a targeted level of performance set in advance of work.
Therefore, corporate goals provide strategic performance targets that the entire organization must reach to pursue its vision.

9. Corporate goals may be articulated in terms of:
- profits quality
- sales revenue employee welfare
- market share
- social responsibility
- unit sales

10. Corporate Philosophy and Culture
Corporate philosophy establishes the values and “rules of conduct” for running the organization.
Corporate culture refers to a system of shared attitudes and behaviors held by the employees that distinguish it from other organizations.

11. Strategy at the Business Unit Level

12. Business Unit Mission and Goal
The business unit mission is a statement that specifies the markets and product lines in which a business will compete. It communicates the scope of a business unit.
A business unit goal is a performance target the business unit seeks to reach in an effort to achieve its mission. Goals that are more specific, measurable and quantifiable are called objectives.

13. ? Boston Consulting Group Growth-Share Matrix Market growth rate
20%
High
10%
Low 0% ?
Question
mark
Star A
Market growth rate D B
Cash
cow
Dog C
10x High 1x Low 0.1x
Relative market share
(share relative to largest competitor)

14. Objectives for each SBU
Build. Increase market share through cash injection. Make Starts out of Question marks.
Hold. Maintain market share. Often used for Cash Cows which are already generating large amounts of cash
Harvest. Increase short-term cash output of the SBU. Pump cash from Dogs or Cash Cows into Stars or Question Marks.
Divest. Sell the SBU. Question Marks and Dogs are ideal candidates

15. Specifying the SBU’s Competencies: Some Important Definitions
competitive advantage is . . .
quality is . . .
benchmarking is

16. Strategy at the Functional Level
Marketing and other functional departments create their own functional goals –really extensions of corporate and business unit goals.

17. The Strategic Marketing Process
Where are we now?
Where do we want to go?
How do we allocate our resources to get where we want to go?
How do we convert our plans into action?
How do our results compare with our plans, and do deviations require new plans and actions?

18. Marketing Plan
The strategic marketing process is usually formalized in a Marketing Plan, which is a road map for the marketing activities of an organization for a specified future period of time.

19. The strategic marketing process Market-product focus and goal setting
Planning phase
Situation (SWOT)
analysis
Market-product focus and goal setting
Marketing
program
Corrective Action
Marketing plan
Implementation
Phase
Results
Control
Phase

20. Market-product focus and goal setting
Planning phase
Situation (SWOT)
analysis
Market-product focus and goal setting
Marketing
program
Strengths
Weaknesses
Opportunities
Threats
Market Penetration / New Markets
Product Development
Diversification

21. Market-product focus and goal setting
Planning phase
Situation (SWOT)
analysis
Market-product focus and goal setting
Marketing
program
Market Segmentation. Aggregating prospective buyers into groups, or segments that have: common needs and will respond similarly to a marketing action.
Selecting the target markets.
Finding points of difference for the product. (Competitive advantage)

22. Market-product focus and goal setting
Planning phase
Situation (SWOT)
analysis
Market-product focus and goal setting
Marketing
program
Developing the marketing mix (4 Ps)
Developing the budget

23. Elements of the marketing mix that compose a cohesive marketing program
manager
Product
Features
Brand name
Packaging
Service
Warranty
Price
List price
Discounts
Allowances
Credit items
Payment period
Promotion
Advertising
Personal selling
Sales promotion
Publicity
Place
Outlets
Channels
Coverage
Transportation
Stock level
Cohesive marketing mix
Promotion
Place
Price
Product

24. Implementation
Phase
The implementation phase involves executing the marketing plan and putting it into effect:
Obtaining resources (money and personnel)
Designing the marketing organization
Developing schedules
Executing the marketing program (strategy and tactics)

25. Organization of a Typical Manufacturing Firm, Showing a Breakdown of the Marketing Department
President
Vice President
Research and
Development
Department
Vice President
Manufacturing
Department
Vice President
Marketing
Department
Vice President
Account and
Finance
Department
Vice President
Human
Resources
Department
Manager
Marketing
Research
Manager
Product
Planning
Manager
Sales
Manager
Advertising &
Sales Promotion
Sales Regions
and
Representatives

26. Strategy versus Tactics
Strategy means by which a goal is to be achieved, characterized by a specific target market and a marketing program to reach it
Tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies

27. Comparing results with plans to identify deviations
Control
Phase
Comparing results with plans to identify deviations
Finding the planning gap
Acting on deviations
Performance less than expected –Corrective action
Performance greater than expected –Uncover the reason