Lecture Marketing (12/e): Chapter 2 – Kerin, Hartley, Rudelius

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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:

LO 2-1

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

LO 2-2

Describe core values, mission,
organizational culture, business, and
goals.

LO 2-3

Explain why managers use marketing
dashboards and marketing metrics.

LO 2-4

Discuss how an organization assesses
where it is now and where it seeks to be.
2­2


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:

LO 2-5

Explain the three steps of the planning
phase of the strategic marketing
process.

LO 2-6

Describe the four components of the
implementation phase of the strategic
marketing process.

LO 2-7

Discuss how managers identify and act
on deviations from plans.

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STARTING A BUSINESS BY GETTING AN “A”
IN AN ICE CREAM-MAKING COURSE!

2­4


LO 2-1

TODAY’S ORGANIZATIONS

KINDS OF ORGANIZATIONS



Organization



For-Profit Organization (Business Firm)



Offerings

• Profit


Nonprofit Organization



Government Agency



Industry

2­5

FIGURE 2-A How an industry is structured

2­6


LO 2-1

MAKING RESPONSIBLE DECISIONS
Using Social Entrepreneurship to Help People



Social Entrepreneurship

2­7


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

2­8


LO 2-1

TODAY’S ORGANIZATIONS
STRATEGY AND ORGANIZATIONAL STRUCTURE



Can’t Be “All Things to All People”



Strategy



Corporate Level



Chief Marketing Officer (CMO)



Strategic Business Unit
(SBU) Level
• Perfume

• Leather
Goods

• Luggage
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LO 2-1

TODAY’S ORGANIZATIONS
STRATEGY AND ORGANIZATIONAL STRUCTURE



Functional Level



Department



Cross-Functional Teams

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FIGURE 2-2 Visionary organizations:
(1) establish a foundation, (2) set a direction,
and (3) create strategies to successfully
develop and market their offerings

2­11


LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL FOUNDATION (WHY)

Core Values
• Stakeholders



Mission or Vision
• Mission Statement



Organizational
Culture

Medtronic

2­12


LO 2-2

Star Trek’s Star Ship Enterprise
Why is a mission statement important?

2­13


LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)

Business
• What do we do?
• What business
are we really in?



Business
Model
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LO 2-2

MARKETING MATTERS
Angry Birds: Discovering Its Business Model

Angry
Birds
Video

2­15

LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)

Goals or Objectives
• Profit

• Customer Satisfaction

• Sales ($ or #)

• Employee Welfare

• Market Share

• Social Responsibility

• Quality

• Efficiency
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LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)

Goals or Objectives: S.M.A.R.T
• Specific
• Measurable
• Attainable
• Relevant
• Time-Based
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LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL STRATEGIES (HOW)

Variation by Level
• Corporate



• SBU

• Functional

Variation by Offering
• Product

• Service

• Idea

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LO 2-2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL STRATEGIES (HOW)

Marketing
Plan
• Long-Range
• Annual



Business
Plan
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FIGURE 2-B Elements in typical marketing and
business plans targeted at different audiences

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LO 2-3

STRATEGY IN VISIONARY ORGANIZATIONS
TRACKING STRATEGIC PERFORMANCE



Marketing Dashboard



Marketing Metric



Data Visualization
2­21


FIGURE 2-3 An effective marketing dashboard
like Sonatica’s helps managers assess a
business situation at a glance

Source: Dundas Data Visualization

2­22

FIGURE 2-3A Marketing Dashboard: Website
Traffic Sources

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FIGURE 2-3B Marketing Dashboard: Sales
Performance by SBU

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FIGURE 2-3C Marketing Dashboard: Monthly
Website Visits by State

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