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Chapter Marketing’s Strategic Role in the Organization Jason C H Chen, Ph.D Professor School of Business Administration Gonzaga University Spokane, WA 99223 chen@jepson.gonzaga.edu 3-1 Irwin/McGraw-Hill & Dr Chen After After studying studying this this chapter, chapter, you you should should be be able able to: to: 3-2 Discuss the three basic levels in an organization and the types of strategic plans developed at each level Understand the organizational strategic planning process and the role of marketing in this process Describe the key decisions in the development of corporate strategy Irwin/McGraw-Hill & Dr Chen After studying this chapter, you should be able to: Understand the different general business strategies and their relationship to business marketing, product marketing, and international marketing strategies Realize the importance of relationships and teamwork in executing strategic plans 3-3 Irwin/McGraw-Hill & Dr Chen OPENING VIGNETTE WWW.DISNEY COM What are the four business segments of Disney? What are the long run objectives of Disney’s? Can the development of a marketing strategy help Disney? How? 3-4 Irwin/McGraw-Hill & Dr Chen Planning is everything develop Customers, market, competition Vision guide Strategy create Tactic Products, Services N 3-5 Irwin/McGraw-Hill & Dr Chen IT Planning: The Relationship Between Business, IS, and IT Strategies IT Impact and potential Business Strategy • Business Decisions • Objectives and Direction • Change Supports business Direction for business IS Strategy • Business Based • Demand Orientated • Application Focused Infrastructure And services • Activity Based • Supply Orientated • Technology Focused Irwin/McGraw-Hill & Dr Chen What is required Needs and priorities IT Strategy 3-6 Where is the business going and why How it can be delivered Focusing Marketing Strategy and Evaluating Market Opportunities Opportunities to be turned Into marketing strategies and plans Evaluating Opportunities Focusing marketing Strategy Defining generic markets and product-markets 3-7 Targeting and Segmentation Irwin/McGraw-Hill & Dr Chen S.W.O.T Analysis Positioning and Differentiation Company mission, objectives, resources Develop product market Screening criteria Competitor analysis Trends in external environment: Technological, Economic, Political & Legal Cultural & Social Organizational Levels The Corporate Level is the highest level in any organization The Business Level consists of units within the overall organization that are generally managed as self-contained businesses The Functional Level includes all the various functional areas within a business unit 3-8 Irwin/McGraw-Hill & Dr Chen I Organizational Strategic Planning Higher organizational level strategic plans provide direction for strategic plans at lower levels 3-9 Irwin/McGraw-Hill & Dr Chen Lower-level plans are developed to execute higher-level plans Competitive Advantage • Competitive advantage: the firm has a marketing mix that the target market sees as better than a competitor's mix – A better marketing mix offers target customers better customer value – Note: customers who are not in the target market may not see the marketing mix as offering better value • Requires that the firm: – understand current competitors' offerings – anticipate competitors' likely plans – monitor effects of changes in competition – REALLY understand the target customers' needs 3-10 Irwin/McGraw-Hill & Dr Chen ... Discuss the three basic levels in an organization and the types of strategic plans developed at each level Understand the organizational strategic planning process and the role of marketing. .. Objectives and Goals Grand Strategy Impact of Competition and other Environmental Items Marketing Strategy and Tactics Target Market (Segments, Position) Marketing Mix P P P P Product Place C Offering... Competitiveadvantage advantage Marketing Marketing Marketing Marketingstrategic strategic plan plan Target Targetmarket market Marketing Marketingmix mix Product Productmarketing marketing plan