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2. DEVELOPING SUCCESSFUL MARKETING AND CORPORATE STRATEGIES
CHAPTER
DEVELOPING SUCCESSFUL MARKETING AND CORPORATE STRATEGIES
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3. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Describe the three organizational levels of strategy.
Describe why business, mission, culture, and goals are important in organizations.
Explain how organizations set strategic directions by assessing where they are now and seek to be in the future.
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4. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
Describe the strategic marketing process and its three key phases: planning, implementation, and control.
Explain how the marketing mix elements are blended into a cohesive marketing program.
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5. FIGURE 2-1 The three levels of strategy in organizations: corporate, business unit, and functional
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6. LEVELS OF STRATEGY IN ORGANIZATIONS
Strategy Issues in Organizations
The Business
The Mission
Organizational Culture
Stakeholders
Organizational Culture
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7. LEVELS OF STRATEGY IN ORGANIZATIONS
Strategy Issues in Organizations
Goals or Objectives
Profit
Customer Satisfaction
Sales
Employee Welfare
Market Share
Social Responsibility
Quality
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8. Lands’ End Unconditional Guarantee What is the strategic focus?
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9. SETTING STRATEGIC DIRECTIONS
Growth Strategies: Where Do We Want to Go?
Market-Product Analysis
Market Penetration
Market Development
Product Development
Diversification
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10. THE STRATEGIC MARKETING PROCESS
How do our results compare with our plans and do deviations require new plans?
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
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11. FIGURE 2-5 The strategic marketing process
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12. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Planning Phase
Step 1: Situation (SWOT) Analysis
Situation Analysis
SWOT Analysis
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13. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Planning Phase
Step 2: Market-Product Focus and Goal Setting
Market Segmentation
Set Marketing and Product Goals
Select Target Markets
Points of Difference
Position the Product
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14. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Planning Phase
Step 3: Marketing Program
Product Strategy
Price Strategy
Promotion Strategy
Place (Distribution) Strategy
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15. FIGURE 2-7 Elements of the marketing mix that comprise a cohesive marketing program
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16. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Implementation Phase
Obtaining Resources
Designing the Marketing Organization
Developing Schedules
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17. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Implementation Phase
Executing the Marketing Program
Marketing Strategy
Marketing Tactics
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18. SETTING STRATEGIC DIRECTIONS
Strategic Marketing Process: The Control 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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19. SPECIALIZED BICYCLE COMPONENTS, INC.: RIDE THE RED “S”
VIDEO CASE 2
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20. VIDEO CASE 2 Specialized Bicycle Components
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21. VIDEO CASE 2 Specialized Bicycle Components
1. Do a SWOT analysis for Specialized. Use Figure 2-6 in Chapter 2 and Figure 1 in Appendix A as guides. In assessing internal factors (strengths and weaknesses), use the material provided in the case. In assessing external factors (opportunities and threats), augment the case material with what you see happening in the bicycle industry.
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22. VIDEO CASE 2 Specialized Bicycle Components
2. As part of step 2 of the planning phase, and using your SWOT analysis, select target markets on which you might focus for present and potential users.
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23. VIDEO CASE 2 Specialized Bicycle Components
3. As part of step 3 of the planning phase and using your answers in questions 1 and 2 above, outline Specialized’s marketing programs for the target market segments you chose.
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24. Profit
Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses are subtracted from its total revenues.
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25. Corporate Level
The corporate level is the level in an organization where top management directs overall strategy for the entire organization.
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26. Business Unit
A business unit is an organization that markets a set of related products to a clearly defined group of customers.
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27. Business Unit Level
The business unit level is the level in an organization where business unit managers set the direction for their products and markets to exploit value-creating opportunities.
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28. Functional Level
The functional level is the level in an organization where groups of specialists actually create value for the organization.
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29. Cross-functional Teams
Cross-functional teams are a small number of people from different departments in an organization who are mutually accountable to a common set of performance goals.
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30. Mission
Mission is a statement of the organization’s scope, often identifying its customers, markets, products, technology, and values.
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31. Stakeholders
Stakeholders are the people who are affected by what the company does and how well it performs.
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32. Organizational Culture
Organizational culture is a set of values, ideas, and attitudes that is learned and shared among the members of an organization.
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33. Goals or Objectives
Goals or objectives convert the mission into targeted levels of performance to be achieved, often by a specific time.
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34. Market Share
Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
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35. Competencies
Competencies are an organization’s special capabilities, including skills, technologies, and resources that distinguish it from other organizations.
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36. Competitive Advantage
Competitive advantage is a unique strength relative to competitors, often based on quality, time, cost, or innovation.
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37. Quality
Quality consists of those features and characteristics of a product that influence its ability to satisfy customer needs.
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38. Benchmarking
Benchmarking involves discovering how others do something better than your own firm so you can imitate or leapfrog competition.
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39. Strategic Marketing Process
The strategic marketing process is the approach whereby an organization allocates its marketing mix resources to reach its target markets.
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40. Marketing Plan
A marketing plan is a road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.
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41. Situation Analysis
Situation analysis involves taking stock of where a firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.
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42. SWOT Analysis
SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
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43. Market Segmentation
Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
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44. Points of Difference
Points of difference are those characteristics of a product that make it superior to competitive substitutes.
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45. Marketing Strategy
A marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.
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46. Marketing Tactics
Marketing tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies.
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