Download Strategic Directions: From now to the future

McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LEARNING OBJECTIVES (LO)
After reading Chapter 2, you should be able to:
Describe the kinds of organizations that
LO1 exist and the three levels of strategy in
them.
LO2
LO3
Describe how core values, mission,
organizational culture, business, and goals
are important to organizations.
Explain how organizations set strategic
directions by assessing where they are now
and seek to be in the future.
1-2
Introduction – Successful Marketing / Organization Strategies
LEARNING OBJECTIVES (LO)
After reading Chapter 2, you should be able to:
Describe the strategic marketing process and
LO4
its three key phases: planning,
implementation, and evaluation.
LO5
Explain how the marketing mix elements are
blended into a cohesive marketing program.
1-3
Introduction – Successful Marketing / Organization Strategies
From Rice Cookers to Technology Leaders
Sony: A Marketing Genius
1-4
Opening Story – Rice Cooker
Types of Organisations
Today’s World
• Organisations
• Business Firms
• Non-Profit Organisations
LO1
1-5
Organizations and the three Levels of Strategy
Levels and Teams
Today’s World
• Corporate
• Units
• Functional Teams
• Cross-Functional Teams
LO1
1-6
Organizations and the three Levels of Strategy
Levels and Teams
Three levels of strategy
LO1
1-7
Organizations and the three Levels of Strategy
Strategy in Organisations
The Foundations of Organisations
• Core Values
• Stakeholders
• Mission / Vision
• Organizational Culture
Why are these Important?
LO2
1-8
Values, Mission, Culture, Business and Goals
‘Rising Figure’ Mural
What does it mean to Medtronic’s Stakeholders
• Find out what Medtronic’s mission is
LO2
1-9
Values, Mission, Culture, Business and Goals
Strategy in Organisations
The Foundations of Organisations: Why?
• The Business
• Who are we?
• What do we do?
• The Mission / Vision
• Why do we do what we do?
• Organizational Culture
• What do we want our stakeholders to believe in?
LO2
1-10
Values, Mission, Culture, Business and Goals
Strategy in Organisations
Direction: What?
• Objectives / Goals
• Profit
• Sales
• Market Share
• Quality
• Customer Satisfaction
• Employee Welfare
• Social Responsibility
• Efficiency
LO2
1-11
Values, Mission, Culture, Business and Goals
Strategic Directions
Where are we now
• Competencies
• What do we do best?
•
•
•
•
LO3
Competitive Advantage?
Fast Cycle Time
Quality
Benchmarking
1-12
Strategic Directions: From now to the future
Giordano Int’l Ltd
(Hong Kong)
LO3
1-13
Strategic Directions: From now to the future
LO3
1-14
Strategic Directions: From now to the future
Strategic Directions
Where do we want to go?
 Growth Strategies: Where Do We Want to Go?
• Business Portfolio Analysis (BCG)
• Market Growth Rate
• Relative Market Share
• Cash Cows / Question Marks / Stars / Dogs
• Market-Product Analysis
LO3
1-15
Strategic Directions: From now to the future
Strategic Directions
Where do we want to go?
 BCG Business Portfolio Analysis:
Placing different SBUs into Quadrants
LO3
1-16
Strategic Directions: From now to the future
Kodak Consumer Products
Classify: Which BCG Growth-Share Matrix?
LO3
1-17
Strategic Directions: From now to the future
Kodak Consumer Products
BCG Portfolio Analysis for 2003 (red) / 2012 (projected, white)
LO3
1-18
Strategic Directions: From now to the future
Strategic Directions
Where do we want to go?
 Growth Strategies: Where Do We Want to Go?
• Market-Product Analysis
• Market Penetration
• Market Development
Product Development
• Diversification
LO3
1-19
Strategic Directions: From now to the future
Strategic Directions
Tracking with Marketing Dashboards
LO3

Car Dashboards and
Marketing Dashboards

Marketing Metrics and Graphics in
Designing Marketing Dashboards

Marketing Plan
1-20
Strategic Directions: From now to the future
Marketing Dashboards
Dashboards help managers assess a business situation at a glance
LO3
1-21
Strategic Directions: From now to the future
Strategic Marketing
How do we get to where we want to go?
● 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
LO4
1-22
Strategic Marketing: Planning, Implementation, Evaluation
FIGURE 2-7 3 Phases of Strategic Marketing
LO4
1-23
Strategic Marketing: Planning, Implementation, Evaluation
Strategic Marketing
The Planning Process
Step 1: Situational (SWOT) Analysis
Step 2: Market-Product Focus and Goal
Setting
Step 3: Marketing Program
LO4
1-24
Strategic Marketing: Planning, Implementation, Evaluation
Strategic Marketing
Planning Step 1: SWOT Situation Analysis

Step 1: Situation (SWOT) Analysis
 Identify Industry Trends
 Analyze Competitors
 Assess the Organization
 Research Present and
Prospective Customers
LO4
1-25
Strategic Marketing: Planning, Implementation, Evaluation
Strategic Marketing
Planning Step 1: SWOT Situation Analysis

Step 1: Situation (SWOT) Analysis
 Build on a Strength
 Correct a Weakness
 Exploit an Opportunity
 Avoid a (potentially) disastrous Threat
LO4
1-26
Strategic Marketing: Planning, Implementation, Evaluation
FIGURE 2-8 GIORDANO’S SWOT ANALYSIS
LO4
1-27
Strategic Marketing: Planning, Implementation, Evaluation
Strategic Marketing
Planning Step 2: Market-Product Focus & Goal Setting

Example: Medtronic’s Pacemaker
• Set Marketing & Product Goals
• Select Target Markets
• Find Points of Difference
• Position the Product
LO4
1-28
Strategic Marketing: Planning, Implementation, Evaluation
Strategic Marketing
Planning Step 3: The Marketing Program

Step 3: Marketing Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
LO5
1-29
Constructing a cohesive Marketing Program from Marketing Mix elements
FIGURE 2-9 Elements of the marketing mix
that comprise a cohesive marketing program
LO5
1-30
Constructing a cohesive Marketing Program from Marketing Mix elements
Strategic Marketing
The Implementation Phase

Obtaining Resources

Designing the Marketing Organization

Developing Schedules

Executing the Marketing Program
• Marketing Strategy
• Marketing Tactics
LO5
1-31
Constructing a cohesive Marketing Program from Marketing Mix elements
FIGURE 2-10 Organization of a typical
manufacturing firm showing a breakdown of
the marketing department
LO5
1-32
Constructing a cohesive Marketing Program from Marketing Mix elements
Strategic Marketing
The Implementation Phase

Executing the Marketing Program
• Marketing Strategy
• Marketing Tactics
LO5
1-33
Constructing a cohesive Marketing Program from Marketing Mix elements
Kodak EasyShare Cameras in China
What Strategies / Tactics are used?
LO5
1-34
Constructing a cohesive Marketing Program from Marketing Mix elements
Strategic Marketing
The Evaluation (Control) Phase
 Comparing Results With Plans to Identify
Deviations
• Planning Gap
 Acting on Deviations
• Exploiting a Positive Deviation
• Correcting a Negative Deviation
LO5
1-35
Constructing a cohesive Marketing Program from Marketing Mix elements