Intro to Marketing Assignment
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chap2slides.pptxDeveloping Successful Organizational and Marketing Strategies
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WHAT WE WILL LEARN FROM CHAPTER 2
Describe three kinds of organizations and the three levels of strategy in them.
Describe core values, mission, organizational culture, business, and goals.
Discuss how an organization assesses where it is now and where it seeks to be.
Explain the three steps of the planning phase of the strategic marketing process.
Discuss how managers identify and act on deviations from plans.
IBM Video and Blue Ocean Strategy
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TODAY’S ORGANIZATIONS KINDS OF ORGANIZATIONS
Organization
Offerings
For-Profit Organization (Business Firm)
Nonprofit Organization
Government Agency
Industry
© Rafael Ben-Ari/Alamy
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MAKING RESPONSIBLE DECISIONS Social Entrepreneurs Are Creating New Types of Organizations to Pursue Social Goals
Social Entrepreneurship to address important social needs and issues
Teach For America – 10,000 members teach 750,000 students each year
Teach for America Link
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The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional.
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TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE (1 of 2)
Can’t Be “All Things to All People”
Corporate Level
Chief Marketing Officer (CMO)
Strategic Business Unit (SBU) Level
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TODAY’S ORGANIZATIONS STRATEGY AND ORGANIZATIONAL STRUCTURE (2 of 2)
Functional Level
Department
Cross-Functional Teams
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Visionary organizations use key elements to (1) establish a foundation and (2) set a direction using (3) strategies that enable them to develop and market their products successfully.
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STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL FOUNDATION (WHY)
Stakeholders
Mission or Vision
Mission Statement
Southwest Airlines
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STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL DIRECTION (WHAT) (1 of 2)
What do we do?
What business are we really in?
Business Model
Uber Ad
© Digital Vision; Source: United Parcel Service of America, Inc.
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STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL DIRECTION (WHAT) (2 of 2)
Profit
Sales (dollars or units)
Quality
Customer Satisfaction
Employee Welfare
Social Responsibility
Efficiency (nonprofit organizations)
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STRATEGY IN VISIONARY ORGANIZATIONS ORGANIZATIONAL STRATEGIES (HOW)
Variation by Level
Corporate
SBU
Functional
Variation by Product (or Offering)
Product
Service
Idea
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SETTING STRATEGIC DIRECTIONS A LOOK AROUND: WHERE ARE WE NOW?
Competencies
Competitive Advantage
Customers
Competitors
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SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (1)
Business Portfolio Analysis (BCG Matrix)
Question Marks:
Low Share of High-Growth Market
Stars:
High Share of High-Growth Markets
Cash Cows:
Generates Large Amounts of Cash
Dogs:
Low Share of Slow-Growth Markets
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BCG business portfolio analysis for Apple’s consumer SBUs
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SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? (2)
Market Penetration:
Increase Sales of Current Product in Current Markets
Market Development:
Sell Current Products to New Markets
Product Development:
Sell New Products to Current Markets
Diversification:
Develop New Products to Sell in New Markets
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Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s using diversification analysis.
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THE STRATEGIC MARKETING PROCESS
How do we allocate our resources to get to where we want to go?
How do we convert our plans into actions?
How do our results compare with our plans and do deviations require new plans?
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FIGURE 2-6 The strategic marketing process has three phases: planning, implementation, and evaluation.
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THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (1 of 5)
Step 1: Situation (SWOT) Analysis
Strengths
Weaknesses
Opportunities
Threats
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THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (2 of 5)
Step 1: Situation (SWOT) Analysis
SWOT Analysis Study
Identify Industry Trends
Analyze Competitors
Assess the Organization
Research Present and Prospective Customers
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FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth.
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THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (3 of 5)
Step 1: Situation (SWOT) Analysis
SWOT Analysis Actions
Build on a Strength
Correct a Weakness
Exploit an Opportunity
Avoid a Disaster-Laden Threat
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THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (4 of 5)
Step 2: Market-Product Focus and Goal Setting
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THE STRATEGIC MARKETING PROCESS THE PLANNING PHASE (5 of 5)
Step 3: Marketing Program
Product Strategy
Price Strategy
Promotion Strategy
Place (Distribution) Strategy
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FIGURE 2-8 The four Ps elements of the marketing mix must be blended to produce a cohesive marketing program.
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THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE (1 of 2)
Obtaining Resources
Designing the Marketing Organization
Defining Precise Tasks, Responsibilities, and Deadlines
Executing the Marketing Program
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FIGURE 2-9 Organization of a typical manufacturing firm, showing a breakdown of the marketing department.
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THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE (2 of 2)
Defining Precise Tasks, Responsibilities, and Deadlines
Action Item List:
The Task
The Person Responsible for Task
Date to Finish Task
The Deliverable
Gantt Chart – Graph of a Program Schedule
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FIGURE 2-10 Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks.
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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
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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.”
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VIDEO CASE 2 IBM: USING STRATEGY TO BUILD A “SMARTER PLANET”
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Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne
Blue ocean defined
Not tech innovations
Build brands
Barriers to imitation
Toward blue ocean
Red ocean defined
Paradox of strategy
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Red Ocean vs. Blue Ocean: Defining Characteristic Comparison
| Red Ocean | Blue Ocean |
| Competing in existing market space | Create uncontested market space |
| Beat the competition | Make the competition irrelevant |
| Exploit existing demand | Create and capture new demand |
| Make the value/cost trade off | Break the value/cost trade off |
| Align the whole system of company’s activities with its strategic choice of differentiation or low cost | Align the whole system of a company’s activities in pursuit of differentiation and low cost |
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Execution of Blue Ocean Strategy
Hurdles
Cognitive
Resource: (cold vs. hot spots), horse trading
Motivation: kingpins, fishbowl mgmt, atomization
Politics: angels, devils, consigliere
Three Es of execution
Engagement
Explanation
Expectation
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WHAT WE LEARNED FROM CHAPTER 2
Describe three kinds of organizations and the three levels of strategy in them.
Describe core values, mission, organizational culture, business, and goals.
Discuss how an organization assesses where it is now and where it seeks to be.
Explain the three steps of the planning phase of the strategic marketing process.
Discuss how managers identify and act on deviations from plans.
IBM Video and Blue Ocean Strategy
©McGraw-Hill Education.
