Developing Successful Marketing AND Corporate Strategies: Hapter

CHAPTER
DEVELOPING
SUCCESSFUL
MARKETING
AND
CORPORATE
STRATEGIES
Copyright 2007 by The McGraw-Hill Companies, Inc.
All rights reserved.
Slide 2-1
AFTER READING THIS CHAPTER

YOU SHOULD BE ABLE TO:
1. Describe the three organizational levels
of strategy.
2. Describe why business, mission,
organizational culture, and goals are
important in organizations.
3. Explain how organizations set strategic
directions by assessing where they are
now and seek to be in the future.
Slide 2-2
AFTER READING THIS CHAPTER

YOU SHOULD BE ABLE TO:
4. Describe the strategic marketing
process and its three key phases:
planning, implementation, and control.
5. Explain how the marketing mix
elements are blended into a cohesive
marketing program.
Slide 2-3
WHERE CAN AN A IN
ICE CREAM MAKING LEAD?
Slide 2-4
ORGANIZATIONS AND THEIR

LEVELS OF STRATEGY
Profit
Kinds of Organizations
Business Firm
Nonprofit Organization
Firm, Company, Corporation, Organization
Slide 2-5

LEVELS OF STRATEGY
Levels in Organizations and How
Marketing Links to Them
Corporate Level
Strategic Business Unit (SBU)
Business Unit Level
Functional Level
Department
Slide 2-6
FIGURE 2-1 The three levels of strategy

in organizations: corporate, business unit,
and functional
Slide 2-7

LEVELS OF STRATEGY
Strategy Issues in Organizations
The Business
The Mission (Mission Statement/Vision)
Organizational Culture
Stakeholders
Slide 2-8
Medtronics Rising Figure Mural

What does it signify to stakeholders?
Slide 2-9

LEVELS OF STRATEGY
Strategy Issues in Organizations
Goals or Objectives
Profit
Customer Satisfaction
Sales
Employee Welfare
Market Share
Social Responsibility
Quality
Slide 2-10
Concept Check
1. What are the three levels in todays

large organizations?
A: The corporate, business unit, and
functional levels exist in large
corporations.
Slide 2-11
Concept Check
2. What is the meaning of an

organizations mission?
A: Mission is a statement of the
organizations scope, often
identifying its customers, markets,
products, technology, and values.
Slide 2-12
Concept Check
3. How do an organizations goals

relate to its mission?
A: Goals or objectives measure how
well the organizations mission is
being accomplished.
Slide 2-13
SETTING STRATEGIC DIRECTIONS

A Look Around: Where Are We Now?
Customers
Competencies
Competitive Advantage
Competitors
Slide 2-14
Lands End Unconditional Guarantee

What is the strategic focus?
Slide 2-15

Growth Strategies: Where Do We Want
to Go?
Business Portfolio Analysis (BCG)
Market Growth Rate
Relative Market Share
Cash Cows
Question Marks or Problem Children
Stars
Dogs
Slide 2-16
FIGURE 2-2 Boston Consulting Group

portfolio analysis for Kodak, as it might
appear in 2006
Kodak digital
camera
Kodak digital
photo printer
Kodak film sales: US,

Canada, & W. Europe
Kodak selfservice kiosk

Slide 2-17
Kodak Traditional Film Cartridge

What SBU type in the BCG growth-share matrix?
Slide 2-18
Kodak Digital Camera

Slide 2-19
Kodak Digital Photo Printer

Slide 2-20
Kodak Picture Maker Self-Service Kiosk

Slide 2-21

Growth Strategies: Where Do We Want
to Go?
Market-Product Analysis
Market Penetration
Market Development
Product Development
Diversification
Slide 2-22
FIGURE 2-3 Four market-product strategies:

alternative ways to expand sales revenues
for Ben & Jerrys
Slide 2-23
Concept Check
1. What are competencies and why are

they important?
A: Competencies are an organizations
special capabilities, including skills,
technologies, and resources that
distinguish it from other organizations,
which if exploited, can lead to the
organizations success.
Slide 2-24
Concept Check
2. What is business portfolio analysis?

A: Business portfolio analysis studies a
firms business units as though they
were a collection of separate
investments.
Slide 2-25
Concept Check
3. What are the four market-product

strategies?
A: (1) market penetration; (2) market
development; (3) product
development; and (4) diversification.
Slide 2-26
THE STRATEGIC MARKETING

PROCESS
How do we allocate our resources to get where
we want to go?
How do we convert our plans to actions?
How do our results compare with our plans,
and do deviations require new plans?
Strategic Marketing Process
Marketing Plan
Slide 2-27
FIGURE 2-4 The strategic marketing

process
Slide 2-28

PROCESS
Strategic Marketing Process:
The Planning Phase
Step 1: Situation (SWOT) Analysis
Situation Analysis
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Slide 2-29
FIGURE 2-5 Ben & Jerrys: a SWOT analysis

to get it growing again
Slide 2-30
Ben & Jerrys One Sweet Whirled Campaign

What is the impact of a SWOT analysis?
Slide 2-31

PROCESS
The Planning Phase
Step 2: Market-Product Focus and Goal Setting
Market Segmentation
Set Marketing and Product Goals
Select Target Markets
Find Points of Difference
Position the Product
Slide 2-32
Medtronics Champion Heart Pacemaker

What features are important to the Asian market?
Slide 2-33

PROCESS
The Planning Phase
Step 3: Marketing Program
Product Strategy
Price Strategy
Promotion Strategy
Place (Distribution) Strategy
Slide 2-34
FIGURE 2-6 Elements of the marketing mix

that comprise a cohesive marketing program
Slide 2-35
Concept Check
1. What is the difference between a

strength and an opportunity in a
SWOT analysis?
A: Both are positive factors for the
organization, but a strength is an
internal factor whereas an
opportunity is an external one.
Slide 2-36
Concept Check
2. What is market segmentation?

A: Market segmentation involves
aggregating prospective buyers into
groups, or segments, that (1) have
common needs and (2) will respond
similarly to a marketing action.
Slide 2-37
Concept Check
3. What are points of difference and

why are they important?
A: Points of difference are those
characteristics of a product that make
it superior to competitive substitutes.
They are the single most important
factor in the success or failure of a
new product.
Slide 2-38

PROCESS
The Implementation Phase
Obtaining Resources
Designing the Marketing Organization
Developing Schedules
Slide 2-39
FIGURE 2-7 Organization of a typical

manufacturing firm showing a breakdown of
the marketing department
Slide 2-40

PROCESS
The Implementation Phase
Executing the Marketing Program
Marketing Strategy
Marketing Tactics
Slide 2-41
Kodak EasyShare Cameras in China

What marketing strategy & tactics are used?
Slide 2-42

PROCESS
The Control Phase
Comparing Results With Plans to Identify
Deviations
Planning Gap
Acting on Deviations
Exploiting a Positive Deviation
Correcting a Negative Deviation
Slide 2-43
FIGURE 2-8 Evaluation and control of

Kodaks marketing program
Slide 2-44
Concept Check
1. What is the control phase of the

strategic marketing process?
A: This is the phase that seeks to keep
the marketing program moving in the
direction set for it.
Slide 2-45
Concept Check
2. How do the objectives set for a

marketing program in the planning
phase relate to the control phase of
the strategic marketing process?
A: The planning phase objectives are
used as the benchmarks to which the
actual performance results are
compared in the control phase.
Slide 2-46
GOING ONLINE
MEDTRONICS MISSION
STATEMENT
Slide 2-47
Going Online
1. What stakeholders are specifically

mentioned or implied in Medtronics
mission? What values are associated
with each stakeholder?
Slide 2-48
Going Online
2. What is the scope of Medtronics

mission? Why does Medtronic limit
its scope?
Slide 2-49
Going Online
3. Why does Medtronic NOT define

itself as being in the medical
device business?
Slide 2-50
VIDEO CASE 2
BP: ALLOCATING RESOURCES
TO BRING YOU GASOLINE
AND FRESH BREAD!
Slide 2-51
VIDEO CASE 2
BP
Slide 2-52
VIDEO CASE 2
BP
1. How does BP use its strategic

marketing process to allocate
resources to opportunities such as the
BP Connect concept? Is BP Connect
consistent with BPs mission and
values? Explain.
Slide 2-53
VIDEO CASE 2
BP
2. Conduct a SWOT (strengths,

weaknesses, opportunities, threats)
analysis for the BP Connect concept
looking forward globally to the
next three years.
Slide 2-54
VIDEO CASE 2
BP
3. In addition to features such as hightech pumps and twenty-first century

information technology, what other
marketing mix activities would you
recommend as part of Step 3 of the
planning phase?
Slide 2-55
SUPPLEMENTAL
LECTURE NOTE 2-1
MARKETING VERSUS
BUSINESS PLANS
Slide 2-56
FIGURE A-1 Elements in typical marketing

and business plans targeted at different
audiences
Slide 2-57
SUPPLEMENTAL
LECTURE NOTE 2-2
PLANNING VS.
IMPLEMENTATION ISSUES
Slide 2-58
FIGURE 2-A Results of good and bad

marketing planning and implementation
Slide 2-59
SUPPLEMENTAL
LECTURE NOTE 2-3
ORGANIZING FOR
MARKETING
Slide 2-60
FIGURE 2-B Organization of a business unit

in a typical consumer packaged goods firm,
showing two product or brand groups
Slide 2-61
FIGURE 2-C Units with which the product

manager and product group work
Slide 2-62
SUPPLEMENTAL
LECTURE NOTE 2-4
PROJECT SCHEDULING
USING GANTT CHARTS
Slide 2-63
FIGURE 2-D Tasks to complete a term

project
Slide 2-64
FIGURE 2-E Gantt chart for scheduling the

term project
Slide 2-65
IN-CLASS ACTIVITY 2-1

MARKETING YOURSELF
Slide 2-66
Yahoo!/Hot Jobs TV Ad
Slide 2-67
Sample Rsum
Slide 2-68
Sample Cover Letter
Slide 2-69
IN-CLASS ACTIVITY 2-2

MARKETING PLANNING
WORKSHEET
Slide 2-70
Slide 2-71
Slide 2-72
Profit
Profit
Profit is
is the
the reward
reward to
to aa business
business firm
firm for
for
the
the risk
risk itit undertakes
undertakes in
in offering
offering aa
product
product for
for sale.
sale. ItIt is
is also
also the
the money
money left
left
over
over after
after aa firms
firms total
total expenses
expenses are
are
subtracted
subtracted from
from its
its total
total sales.
sales.
Slide 2-73
Mission
Mission
Mission is
is aa statement
statement of
of the
the
organizations
organizations scope,
scope, often
often identifying
identifying its
its
customers,
customers, markets,
markets, products,
products, technology,
technology,
and
and values.
values.
Slide 2-74
Organizational
Organizational culture
culture is
is aa set
set of
of values,
values,
ideas,
ideas, and
and attitudes
attitudes that
that is
is learned
learned and
and
shared
shared among
among the
the members
members of
of an
an
organization.
organization.
Slide 2-75
Goals or Objectives
Goals
Goals or
or objectives
objectives convert
convert the
the mission
mission
into
into targeted
targeted levels
levels of
of performance
performance to
to be
be
achieved,
achieved, often
often by
by aa specific
specific time.
time.
Slide 2-76
Market Share
Market
Market share
share is
is the
the ratio
ratio of
of sales
sales revenue
revenue
of
of the
the firm
firm to
to the
the total
total sales
sales revenue
revenue of
of all
all
firms
firms in
in the
the industry,
industry, including
including the
the firm
firm
itself.
itself.
Slide 2-77
Strategic Marketing Process
The
The strategic
strategic marketing
marketing process
process is
is the
the
approach
approach whereby
whereby an
an organization
organization
allocates
allocates its
its marketing
marketing mix
mix resources
resources to
to
reach
reach its
its target
target markets.
markets.
Slide 2-78
Marketing Plan
A
A marketing
marketing plan
plan is
is aa road
road map
map for
for the
the
marketing
marketing activities
activities of
of an
an organization
organization for
for
aa specified
specified future
future period
period of
of time,
time, such
such as
as
one
one year
year or
or five
five years.
years.
Slide 2-79
Situation Analysis
Situation
Situation analysis
analysis involves
involves taking
taking stock
stock
of
of where
where aa firm
firm or
or product
product has
has been
been
recently,
recently, where
where itit is
is now,
now, and
and where
where itit is
is
headed
headed in
in terms
terms of
of the
the organizations
organizations
plans
plans and
and the
the external
external factors
factors and
and trends
trends
affecting
affecting it.
it.
Slide 2-80
SWOT Analysis
SWOT
SWOT analysis
analysis is
is an
an acronym
acronym describing
describing
an
an organizations
organizations appraisal
appraisal of
of its
its internal
internal
Strengths
Strengths and
and Weaknesses
Weaknesses and
and its
its
external
external Opportunities
Opportunities and
and Threats.
Threats.
Slide 2-81
Market Segmentation
Market
Market segmentation
segmentation involves
involves
aggregating
aggregating prospective
prospective buyers
buyers into
into
groups,
groups, or
or segments,
segments, that
that (1)
(1) have
have
common
common needs
needs and
and (2)
(2) will
will respond
respond
similarly
similarly to
to aa marketing
marketing action.
action.
Slide 2-82
Points of Difference
Points
Points of
of difference
difference are
are those
those
characteristics
characteristics of
of aa product
product that
that make
make itit
superior
superior to
to competitive
competitive substitutes.
substitutes.
Slide 2-83
Marketing Strategy
A
A marketing
marketing strategy
strategy is
is the
the means
means by
by
which
which aa marketing
marketing goal
goal is
is to
to be
be achieved,
achieved,
usually
usually characterized
characterized by
by aa specific
specific target
target
market
market and
and aa marketing
marketing program
program to
to reach
reach
it.
it.
Slide 2-84
Marketing Tactics
Marketing
Marketing tactics
tactics are
are detailed
detailed
day-to-day
day-to-day operational
operational decisions
decisions essential
essential
to
to the
the overall
overall success
success of
of marketing
marketing
strategies.
strategies.
Slide 2-85

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CHAPTER

All rights reserved.

AFTER READING THIS CHAPTER

All rights reserved.

AFTER READING THIS CHAPTER

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

ORGANIZATIONS AND THEIR

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

ORGANIZATIONS AND THEIR

All rights reserved.

FIGURE 2-1 The three levels of strategy

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

ORGANIZATIONS AND THEIR

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Medtronics Rising Figure Mural

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

ORGANIZATIONS AND THEIR

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

1. What are the three levels in todays

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

2. What is the meaning of an

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

3. How do an organizations goals

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

SETTING STRATEGIC DIRECTIONS

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Lands End Unconditional Guarantee

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

SETTING STRATEGIC DIRECTIONS

Question Marks or Problem Children

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

FIGURE 2-2 Boston Consulting Group

Kodak film sales: US,

Kodak selfservice kiosk

All rights reserved.

Kodak Traditional Film Cartridge

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Kodak Digital Camera

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Kodak Digital Photo Printer

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

Kodak Picture Maker Self-Service Kiosk

Copyright 2007 by The McGraw-Hill Companies, Inc.

All rights reserved.

SETTING STRATEGIC DIRECTIONS

Copyright 2007 by The McGraw-Hill Companies, Inc.