Lecture Marketing (12/e): Chapter 22 – Kerin, Hartley, Rudelius

Chapter 22 - Pulling it all together: the strategic marketing process. After reading chapter 22, you should be able to: Explain how marketing managers allocate their limited resources, describe Porter’s generic business strategies and synergy analysis planning frameworks, explain what makes an effective marketing plan,...

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 22, YOU SHOULD BE ABLE TO: LO 22-1 Explain how marketing managers allocate their limited resources LO 22-2 Describe Porter’s generic business strategies and synergy analysis planning frameworks LO 22-3 Explain what makes an effective marketing plan 22­2 LEARNING OBJECTIVES (LO) 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 LO 22-5 Describe an organization’s marketing department and the role of a product manager LO 22-6 Explain the use of marketing ROI, metrics, and dashboards in evaluating marketing programs 22­3 WARM DELIGHTS FOR TODAY’S ON-THE-GO CONSUMERS   Breaking the Rules at “Big G” • Warm Delights • Warm Delights Minis Cereal Industry Facts of Life • Expense • Success Rate • Market Decline 22­4 WARM DELIGHTS FOR TODAY’S ON-THE-GO CONSUMERS  Creative Initiatives at Big G • Single-Portion Entrees • High-Fiber, Low Calorie Cereals • Healthy Snacks • High-Protein Yogurt • Breakfast Drink Fiber One 22­5 MARKETING BASICS: DOING WHAT WORKS LO 22-1 AND ALLOCATING RESOURCES FINDING AND USING WHAT REALLY WORKS  Strategy  Execution Smucker’s  Culture  Marketspace 22­6 MARKETING BASICS: DOING WHAT WORKS LO 22-1 AND ALLOCATING RESOURCES USING SALES RESPONSE FUNCTIONS  Sales Response Function  Maximizing Incremental Revenue Minus Incremental Cost  An Example of Resource Allocation • Year • Year 22­7 FIGURE 22-1 A sales response function shows the impact on sales at various levels of marketing effort on annual sales revenue 22­8 MARKETING BASICS: DOING WHAT WORKS LO 22-1 AND ALLOCATING RESOURCES USING SALES RESPONSE FUNCTIONS  Allocating Marketing Resources in Practice  Share Points—Need Estimates of: • Market Share • Revenues • Gross Margin • Cannibalization 22­9 FIGURE 22-2 The actions in the strategic marketing process are supported and directed by detailed reports, studies, and memos 22­10 FIGURE 22-6 The organization of a strategic business unit in a typical consumer packaged goods firm shows two product/brand groups 22­41 LO 22-5 THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS ORGANIZING FOR MARKETING  Line vs Staff and Divisional Groupings • Line Positions • Staff Positions 22­42 LO 22-5 THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS ORGANIZING FOR MARKETING   Line vs Staff and Divisional Groupings • Product Line Groupings • Functional Groupings • Geographical Groupings • Market-Based Groupings  • Matrix Organization Category Manager Role of the Product/Brand Manager 22­43 FIGURE 22-C Entities in which the product or brand group works with 22­44 LO 22-6 THE EVALUATION PHASE OF THE STRATEGIC MARKETING PROCESS THE 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 22­45 FIGURE 22-7 The evaluation phase of the strategic marketing process ties results and actions to goals using metrics and dashboards 22­46 LO 22-6 THE EVALUATION PHASE OF THE STRATEGIC MARKETING PROCESS THE 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 22­47 LO 22-6 THE EVALUATION PHASE OF THE STRATEGIC MARKETING PROCESS MARKETING ROI, METRICS, AND DASHBOARDS  Marketing ROI  Marketing Metrics  Marketing Dashboards 22­48 LO 22-6 THE EVALUATION PHASE OF THE STRATEGIC MARKETING PROCESS METRICS AND DASHBOARDS AT GENERAL MILLS  The Distribution Challenge for Warm Delights Minis  The Findings for Warm Delights Minis  The Actions for Warm Delights Minis 22­49 FIGURE 22-8 The marketing dashboard for the distribution channels for General Mills’ Warm Delights Minis 22­50 FIGURE 22-8A The marketing dashboard for General Mills’ Warm Delights Minis: Monthly Dollar Sales by Channel 22­51 FIGURE 22-8B The marketing dashboard for General Mills’ Warm Delights Minis: Channel Stores Carrying Warm Delights Minis 22­52 FIGURE 22-8C The marketing dashboard for General Mills’ Warm Delights Minis: November/December Sales by Channel 22­53 FIGURE 22-8D The marketing dashboard for General Mills’ Warm Delights Minis: Average Number of Flavors Carried by Channel 22­54 VIDEO CASE 22 GENERAL MILLS WARM DELIGHTS: INDULGENT, DELICIOUS, AND GOOEY! 22­55 ... innovation metrics 22 13 LO 22- 1 THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS THE VARIETY OF MARKETING PLANS  Long-Range Marketing Plans  Annual Marketing Plans 22 14 LO 22- 2 THE PLANNING...  Full Coverage 22 22 FIGURE 22- 5 The ideal merger for Great States to obtain full market-product coverage 22 23 LO 22- 3 THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS MARKETING PLANNING... Year • Year 22 7 FIGURE 22- 1 A sales response function shows the impact on sales at various levels of marketing effort on annual sales revenue 22 8 MARKETING BASICS: DOING WHAT WORKS LO 22- 1 AND