1. McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. TODAY’S ORGANIZATIONS STRUCTURE—CORPORATE
LO1
Corporate Level
Chief Marketing Officer (CMO)
Cammie Dunaway Yahoo!
Eduardo Conrado Motorola Networks
Leslie Short FUBU
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3. Strategic Business Unit (SBU) Level
The strategic business unit (SBU) level is the level in an organization where managers set a more specific strategic direction for their businesses to exploit value creating opportunities.
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4. TODAY’S ORGANIZATIONS STRUCTURE—SBU
LO1
Strategic Business Unit (SBU)
Strategic Business Unit (SBU) Level
GE Commercial Finance (business loans, leases)
GE Industrial (appliances, lighting, factory automation)
GE Money (consumer home loans, credit cards)
GE Healthcare (imaging, diagnostics, life-support systems)
GE Infrastructure (aircraft engines, energy, transportation)
GE NBC Universal (television, music, film)
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5. Strategic Business Unit (SBU)
A strategic business unit (SBU) is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly-defined group of customers.
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6. TODAY’S ORGANIZATIONS STRUCTURE—FUNCTIONAL
LO1
Functional Level
Department
Cross-Functional Teams
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7. FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional
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8. FIGURE 2-2 Visionary organizations: (1) establish a foundation, (2) set a direction, and (3) create strategies
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9. STRATEGY IN VISIONARY ORGANIZATIONS FOUNDATION (WHY)
LO2
Core Values
Nike- to experience the emotion of competition, winning and crushing competitors
Mission or Vision
Organizational Culture
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10. Star Trek Enterprise Why is a mission statement important?
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11. STRATEGY IN VISIONARY ORGANIZATIONS
DIRECTION (WHAT)
LO2
Business
What do we do?
What business are we really in?
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12. STRATEGY IN VISIONARY ORGANIZATIONS
DIRECTION (WHAT)
LO2
Goals or Objectives: S.M.A.R.T
Specific
Measurable
Attainable
Relevant
Time-based
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13. STRATEGY IN VISIONARY ORGANIZATIONS
DIRECTION (WHAT)
LO2
Goals or Objectives: Types
Profit
Customer Satisfaction
Sales ($ or #)
Employee Welfare
Market Share
Social Responsibility
Quality
Efficiency
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14. SETTING STRATEGIC DIRECTIONS
WHERE ARE WE NOW?
LO3
Competencies (capabilities, skills, technologies and resources that distinguish us from other organization
Competitive Advantage
Fast Cycle Time
Quality
Benchmarking
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15. SETTING STRATEGIC DIRECTIONS
WHERE ARE WE NOW?
LO3
Customers
Competitors
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16. SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? SBU Evaluation
LO3
Business Portfolio Analysis (BCG)
Market Growth Rate
Stars
Cash Cows
Dogs
Question Marks
Relative Market Share
High
Low
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17. FIGURE 2-3 BCG business portfolio analysis for Kodak’s consumer SBUs for 2003 (solid circle) and 2010 (hollow circle) ② ③
Kodak digital camera
Kodak digital photo printer ① ④
Kodak film sales: US, Canada, & W. Europe
Kodak self- service kiosk
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18. SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
LO3
Hedgehog Analysis
Illustration courtesy of Jon Keegan
What Can We Be the Best At in the World?
What Drives Our Economic Engine?
What Are We Deeply Passionate About?
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19. SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
LO3
Blue Ocean Analysis
Copyright 2005 W. Chan Kim and Renée Mauborgne
Red Oceans –where we are
Blue Oceans-where we want to be
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Copyright 2005 W. Chan Kim and Renée Mauborgne

20. SETTING STRATEGIC DIRECTIONS TRACKING WITH MARKETING DASHBOARDS
LO3
Car Dashboards and Marketing Dashboards
Marketing Metrics and Graphics in Designing Marketing Dashboards
Marketing Plan
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21. FIGURE 2-4 An effective marketing dashboard like Oracle’s helps managers assess a business situation at a glance
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22. USING MARKETING DASHBOARDS Which States are Underperforming?
Annual Percent Change in Unit Volume by State
Change in Growth
> 10%
0 – 10%
< 0%
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23. FIGURE 2-5 (Condensed) The strategic marketing process has three phases: planning, implementation, and evaluation
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24. THE STRATEGIC MARKETING PROCESS
LO4
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?
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25. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO4
Step 1: Situation (SWOT) Analysis
Situation Analysis
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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26. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO4
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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27. FIGURE 2-6 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth
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28. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO4
Step 1: Situation (SWOT) Analysis
SWOT Analysis Study
Build on a Strength
Correct a Weakness
Exploit an Opportunity
Avoid a Disaster- Laden Threat
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29. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO4
Step 2: Market-Product Focus and Goal Setting
Market Segmentation
Points of Difference
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30. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO4
Example: Medtronic’s Pacemaker
Set Marketing & Product Goals
Select Target Markets
Find Points of Difference
Position the Product
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31. THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO5
Step 3: Marketing Program
Product Strategy
Price Strategy
Promotion Strategy
Place (Distribution) Strategy
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32. FIGURE 2-7 The elements of the marketing mix must be blended to produce a cohesive marketing program
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33. THE STRATEGIC MARKETING PROCESS THE IMPLEMENTATION PHASE
LO5
Obtaining Resources
Designing the Marketing Organization
Developing Schedules
Executing the Marketing Program
Marketing Strategy
Marketing Tactics
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34. THE STRATEGIC MARKETING PROCESS
THE EVALUATION PHASE
LO5
Comparing Results with Plans to Identify Deviations
Planning Gap
Acting on Deviations
Exploiting a Positive Deviation
Correcting a Negative Deviation
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35. FIGURE 2-9 The evaluation phase of the strategic marketing process that compares actual results with goals to identify and act on deviations to fill in the “planning gap”
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