1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Implementing Interactive & Multichannel Marketing 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 22, you should be able to : LO2 LO1 LO3 Describe three marketing planning frameworks: Porter’s generic business strategies, enhancement options and market-product synergies. Explain what makes an effective marketing plan and some problems that often exists. Explain how marketing managers allocate their limited resources.

3. Implementing Interactive & Multichannel Marketing 1-3 LEARNING OBJECTIVES (LO) After reading Chapter 22, you should be able to : LO5 LO4 Describe the alternatives for organizing a marketing department and the role of a product manager. Schedule a series of tasks to meet a deadline using a Gantt chart. Explain how sales and profitability analyses and ROI marketing are used to evaluate marketing programs. LO6

4. Fraser & Neave Limited Adopting the Right Marketing Strategies F&N: Magnolia Milk 1-4

5. 1-5 Marketing Strategy 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

6. 1-6 Allocating Resources for Marketing LO1 Marketing Basics: Allocating Resources Using Sales Response Functions  Sales Response Function Sales Response Function  A Numerical Example of Resource Allocation  Maximizing Incremental Revenue Minus Incremental Cost Year 1 Year 4

7. 1-7 Allocating Resources for Marketing LO1 FIGURE 22-1 FIGURE 22-1 A sales response function shows the impact on sales at various levels of marketing effort

8. 1-8 Allocating Resources for Marketing LO1 Marketing Basics: Allocating Resources Using Sales Response Functions  Allocating Marketing Resources in Practice Revenues  Share Points—Need Estimates of: Share Points—Need Estimates of: Market Share Cannibalization Gross Margin

9. 1-9 Allocating Resources for Marketing LO1 Marketing Basics: Allocating Resources Using Sales Response Functions  Resource Allocation and the Strategic Marketing Process Output report

10. 1-10 Allocating Resources for Marketing LO1 FIGURE 22-2 FIGURE 22-2 The actions in the strategic marketing process are supported and directed by detailed reports, studies, and memos

11. 1-11 Allocating Resources for Marketing LO1 Planning the Strategic Marketing Process The Variety of Marketing Plans  Annual Marketing Plans  Long-Range Marketing Plans

12. 1-12 Allocating Resources for Marketing FIGURE 22-3 FIGURE 22-3 Actions in the Strategic Marketing Plan are supported and directed by detailed reports, studies and memos LO1

13. 1-13 Three Marketing Planning Frameworks LO2 Planning the Strategic Marketing Process Marketing Planning Frameworks  Cost Leadership Strategy Cost Leadership Strategy 1. Porter’s Generic Business Strategies  Differentiation Strategy Differentiation Strategy  Cost Focus Strategy Cost Focus Strategy  Differentiation Focus Strategy Differentiation Focus Strategy

14. 1-14 Three Marketing Planning Frameworks LO2 FIGURE 22-4 FIGURE 22-4 Porter’s four generic business strategies

15. 1-15 Three Marketing Planning Frameworks LO2 Daiso & the Toyota Yari Which of Porter’s Generic Business Strategy does each use?

16. 1-16 Three Marketing Planning Frameworks LO2 Planning the Strategic Marketing Process Profit Enhancement Options  Market Penetration  Profit Enhancement Options Profit Enhancement Options  Market Development  Diversification  Increasing revenues  Product Development

17. 1-17 Three Marketing Planning Frameworks LO2 Planning the Strategic Marketing Process Market Product Synergies  Marketing Synergy  Market Product Synergies Market Product Synergies  R&D-Manufacturing Synergy

18. 1-18 Three Marketing Planning Frameworks LO2 Planning the Strategic Marketing Process Market Product Synergies  Market Specialization  Market-Product Concentration  Product Specialization  Selective Specialization  Full Coverage

19. 1-19 Three Marketing Planning Frameworks LO2 FIGURE 22-5 FIGURE 22-5 Market-product grids show alternative strategies for a lawnmower manufacturer

20. 1-20 Three Marketing Planning Frameworks LO2 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?

21. 1-21 Three Marketing Planning Frameworks LO2 FIGURE 22-7 FIGURE 22-7 The ideal merger for Great Lakes to obtain full market-product coverage

22. 1-22 Components of an Effective Marketing Plan LO3 Planning the Strategic Marketing Process Marketing Planning & Strategy Lessons  Guidelines for an Effective Marketing Plan Have Complete and Feasible Plans Set Measurable, Achievable Goals Make Plans Controllable and Flexible Use a Base of Facts and Assumptions Use Simple, but Clear and Specific Plans

23. 1-23 Components of an Effective Marketing Plan LO3 Planning the Strategic Marketing Process Marketing Planning & Strategy Lessons  Global Strategies Reaching New Global Markets New Product Ideas from Anyone, Anywhere Around the World

24. 1-24 Components of an Effective Marketing Plan LO3 Planning the Strategic Marketing Process Marketing Planning & Strategy Lessons  Balancing Value and Values in Strategic Marketing Plans  Value-Driven Strategies  Value-Based Planning

25. 1-25 Components of an Effective Marketing Plan LO3 Implementing the Strategic Marketing Process Is the problem Planning or Implementation?  The Plan and Strategy  Implementation of Plan & Strategy Both may be problematic !

26. 1-26 Components of an Effective Marketing Plan LO3 Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs  Communicate Goals and the Means to Achieve Them Product or Program Champion Akio Morita – the product champion for Sony Walkman  Have a Program Champion Willing to Act  Reward Successful Program Implementation

27. 1-27 Components of an Effective Marketing Plan LO3 Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs  Take Action and Avoid Paralysis of Analysis Avoid Paralysis of Analysis Make Prompt Decisions

28. 1-28 Components of an Effective Marketing Plan LO3 Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Get Help—Don’t Keep Problems to Yourself Surface Problems Immediately  Foster Open Communications to Surface Problems QCCs or WITs

29. 1-29 Gantt Charts LO4 Implementing the Strategic Marketing Process Improving Implementation of Marketing Programs Program Schedules Action Item List  Schedule Precise Tasks, Responsibilities, and Deadlines Gantt Chart

30. 1-30 Gantt Charts LO4 FIGURE 22-7 FIGURE 22-7 Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks

31. 1-31 Organising a Marketing Department / The Role of a Product Manager LO5 FIGURE 22-8 FIGURE 22-8 This organisation of a strategic business unit in a typical consumer packaged goods firm shows two product or brand groups: biscuit mixes and refridgerated biscuits

32. 1-32 Organising a Marketing Department / The Role of a Product Manager LO5 Implementing the Strategic Marketing Process Organising for Marketing  Line verses Staff positions  Divisional Groupings Functional Groupings Functional Groupings Product Line Groupings Product Line Groupings Geographical Groupings Geographical Groupings Market-Based Groupings Market-Based Groupings

33. 1-33 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses LO6 Evaluating the Strategic Marketing Process “Doing What Really Works”  The Marketing Evaluation Process  Measuring Results  Taking Marketing Actions

34. 1-34 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses LO6 FIGURE 22-9 FIGURE 22-9 The evaluation phase of the strategic marketing process ties results and actions to goals using marketing metrics and dashboards

35. 1-35 Evaluating Marketing Programs: Sales, Profitability & ROI Analyses LO6 Evaluating the Strategic Marketing Process “Doing What Really Works”  Sales Analysis  Profitability Analysis and ROI Marketing