Marketing chapter 2a developing successful marketing organizational stretegies

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:

LO1

Describe the kinds of organizations that exist and the three levels of
strategy in them.

LO2

Describe how core values, mission, organizational culture,
business, and goals are important to organizations.

LO3

Explain how organizations set strategic directions by assessing
where they are now and seek to be in the future.
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:

LO4

Describe the strategic marketing process and its three key phases:

planning, implementation, and evaluation.

LO5

Explain how the marketing mix elements are blended into a
cohesive marketing program.

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AN “A” IN AN ICE CREAM MAKING COURSE! CAN THIS REALLY BECOME A
BUSINESS?

2-4


TODAY’S ORGANIZATIONS

LO1

KINDS OF ORGANIZATIONS

 Organization – legal entity
 Offerings (products, services, ideas)

 Business Firms – for profit
 Not-for-Profit Organizations

 Industry
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TODAY’S ORGANIZATIONS

LO1

KINDS OF ORGANIZATIONS

Used Interchangeably

 Organization
 Firm
 Company
 Corporation

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LO1

TODAY’S ORGANIZATIONS
WHAT IS STRATEGY?

 Can’t Be “All Things to All People”
 Strategy – long-term course of action designed to deliver a unique customer
experience and accomplish organization’s goals

 Marketing’s Role – help set direction and move organization there

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TODAY’S ORGANIZATIONS

LO1

STRUCTURE—CORPORATE

 Corporate Level
 Chief Marketing Officer (CMO)

Cammie Dunaway

Eduardo Conrado

Leslie Short

Yahoo!

Motorola Networks

FUBU

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LO1

TODAY’S ORGANIZATIONS
STRUCTURE—SBU

 Strategic Business Unit (SBU)

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TODAY’S ORGANIZATIONS
LO1

STRUCTURE—SBU

SBUs are key business units within diversified firms.

●

Each SBU:

●

has its own managers, resources, objectives, and competitors.

●

pursues its own distinct mission.

●

develops its own plans independently.

●

focuses the attention of company managers so that they can respond effectively to
changing consumer demand.


TODAY’S ORGANIZATIONS

LO1

STRUCTURE—SBU

 Strategic Business Unit (SBU)

 Strategic Business Unit (SBU) Level

GE Commercial Finance
(business loans, leases)

GE Industrial

GE Money

(appliances, lighting, factory automation)

(consumer home loans, credit cards)

GE Healthcare

GE Infrastructure

(imaging, diagnostics, life-support systems)

(aircraft engines, energy, transportation)

GE NBC Universal
(television, music, film)

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TODAY’S ORGANIZATIONS

LO1

STRUCTURE—FUNCTIONAL

 Functional Level

 Department

 Cross-Functional Teams

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FIGURE 2-1 The board of directors oversees the three levels of strategy in
organizations: corporate, business unit, and functional

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FIGURE 2-2 Visionary organizations:
(1) establish a foundation, (2) set a direction, and (3) create strategies

2-14


LO2

STRATEGY IN VISIONARY ORGANIZATIONS
FOUNDATION (WHY)

 Core Values

 Stakeholders

 Mission or Vision

 Organizational Culture
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Star Trek Enterprise
Why is a mission statement important?

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Medtronic’s “Rising Figure” Mural
What does it signify to stakeholders?

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STRATEGY IN VISIONARY ORGANIZATIONS

LO2

DIRECTION (WHAT)

 Business

•

What do we do?

•

What business
are we really in?

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STRATEGY IN VISIONARY ORGANIZATIONS
DIRECTION (WHAT)

Marketing Myopia
(Marketing Nearsightedness)
Management’s failure to recognize the scope of its business



Future growth is endangered when management is product oriented rather than
customer oriented



Characteristic of organizations that are too narrowly defined


STRATEGY IN VISIONARY ORGANIZATIONS
DIRECTION (WHAT)

Avoiding Marketing Myopia
by Focusing on Benefits
Company

Myopic Description

Marketing-Oriented Description

AT&T

“We are a telephone company.”

“We are a communications company.”

Southwest Airlines

“We are in the airline business.”

“We are in the transportation business.”

Merrill Lynch

“We are in the stock brokerage business.”

“We are in the financial services business.”

Sony

“We are in the video game business.”

“We are in the entertainment business.”


STRATEGY IN VISIONARY ORGANIZATIONS

LO2

DIRECTION (WHAT)

 Goals or Objectives: S.M.A.R.T

•

Specific

•

Measurable

•

Attainable

•

Relevant

•

Time-based
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STRATEGY IN VISIONARY ORGANIZATIONS

LO2

DIRECTION (WHAT)

 Goals or Objectives: Types

•

Profit

•

Customer Satisfaction

•

Sales ($ or #)

•

Employee Welfare

•

Market Share

•

Social Responsibility

•

Quality

•

Efficiency

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LO3

SETTING STRATEGIC DIRECTIONS
WHERE ARE WE NOW?

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LO3

SETTING STRATEGIC DIRECTIONS
WHERE ARE WE NOW?

 Competencies
 Customers
 Competitors

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SETTING STRATEGIC DIRECTIONS

LO3

WHERE ARE WE NOW?

 Competencies

•

Competitive Advantage

•

Fast Cycle Time

•

Quality

•

Benchmarking

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