Lecture Marketing (12/e): Chapter 2 – Kerin, Hartley, Rudelius

Chapter 2: Developing successful organizational and marketing strategies. In this chapter you will learn: Describe three kinds of organizations and the three levels of strategy in them; describe core values, mission, organizational culture, business, and goals; explain why managers use marketing dashboards and marketing metrics;...

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 2, YOU SHOULD BE ABLE TO: LO 2-1 Describe three kinds of organizations and the three levels of strategy in them LO 2-2 Describe core values, mission, organizational culture, business, and goals LO 2-3 Explain why managers use marketing dashboards and marketing metrics LO 2-4 Discuss how an organization assesses where it is now and where it seeks to be 2­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO: LO 2-5 Explain the three steps of the planning phase of the strategic marketing process LO 2-6 Describe the four components of the implementation phase of the strategic marketing process LO 2-7 Discuss how managers identify and act on deviations from plans 2­3 STARTING A BUSINESS BY GETTING AN “A” IN AN ICE CREAM-MAKING COURSE! 2­4 LO 2-1 TODAY’S ORGANIZATIONS KINDS OF ORGANIZATIONS  Organization  For-Profit Organization (Business Firm)  Offerings • Profit  Nonprofit Organization  Government Agency  Industry 2­5 FIGURE 2-A How an industry is structured 2­6 LO 2-1 MAKING RESPONSIBLE DECISIONS Using Social Entrepreneurship to Help People  Social Entrepreneurship 2­7 FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional 2­8 LO 2-1 TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE  Can’t Be “All Things to All People”  Strategy  Corporate Level  Chief Marketing Officer (CMO)  Strategic Business Unit (SBU) Level • Perfume • Leather Goods • Luggage 2­9 LO 2-1 TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE  Functional Level  Department  Cross-Functional Teams 2­10 FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth 2­39 LO 2-5  THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE Step 1: Situation (SWOT) Analysis • SWOT Analysis Actions  Build on a Strength  Correct a Weakness  Exploit an Opportunity  Avoid a DisasterLaden Threat 2­40 LO 2-5  THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE Step 2: Market-Product Focus and Goal Setting • Market Segmentation • Points of Difference 2­41 LO 2-5  THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE Example: Medtronic’s Pacemaker • Set Marketing & Product Goals • Select Target Markets • Find Points of Difference • Position the Product 2­42 LO 2-5  THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE Step 3: Marketing Program • Product Strategy • Price Strategy • Promotion Strategy • Place (Distribution) Strategy 2­43 FIGURE 2-8 The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program 2­44 LO 2-6 THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE  Obtaining Resources  Designing the Marketing Organization  Defining Precise Tasks, Responsibilities, and Deadlines  Executing the Marketing Program • Marketing Strategy • Marketing Tactics 2­45 FIGURE 2-9 Organization of a typical manufacturing firm, showing a breakdown of the marketing department 2­46 LO 2-6  THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE Line vs Staff and Divisional Groupings • Line Positions • Staff Positions • Product Line Groupings • Functional Groupings • Geographical Groupings • Market-Based Groupings • Category Manager  Role of the Product/Brand Manager 2­47 LO 2-6  THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE Defining Precise Tasks, Responsibilities, and Deadlines • Action Item List • Gantt Chart 2­48 FIGURE 2-E Tasks and time needed to complete a term project 2­49 FIGURE 2-10 Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks 2­50 LO 2-7  THE STRATEGIC MARKETING PROCESS THE EVALUATION PHASE Comparing Results with Plans to Identify Deviations • Planning Gap  Acting on Deviations • Exploiting a Positive Deviation • Correcting a Negative Deviation 2­51 FIGURE 2-11 The evaluation phase requires that Apple compare actual results with goals to identify and act on deviations to fill in the “planning gap” by 2012 2­52 VIDEO CASE IBM: USING STRATEGY TO BUILD A “SMARTER PLANET” 2­53 ... Dundas Data Visualization 2 22 FIGURE 2- 3A Marketing Dashboard: Website Traffic Sources 2 23 FIGURE 2- 3B Marketing Dashboard: Sales Performance by SBU 2 24 FIGURE 2- 3C Marketing Dashboard: Monthly... audiences 2 20 LO 2- 3 STRATEGY IN VISIONARY ORGANIZATIONS TRACKING STRATEGIC PERFORMANCE  Marketing Dashboard  Marketing Metric  Data Visualization 2 21 FIGURE 2- 3 An effective marketing dashboard... Service • Idea 2 18 LO 2- 2  STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL STRATEGIES (HOW) Marketing Plan • Long-Range • Annual  Business Plan 2 19 FIGURE 2- B Elements in typical marketing