Lecture Marketing: The core (5/e): Chapter 2 – Kerin, Hartley, Rudelius

                           McGraw­Hill/Irwin                                                                                    Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.


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

LO1

Describe two kinds of organizations
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 why managers use marketing
dashboards and marketing metrics.

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

LO4

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

LO5

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

LO6

Describe the elements of the
implementation and evaluation phases
of the strategic marketing process.
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WANT TO BE AN ENTREPRENEUR?: GET AN “A” IN A
CORRESPONDENCE COURSE IN ICE CREAM MAKING!

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LO1

TODAY’S ORGANIZATIONS
KINDS OF ORGANIZATIONS



Organization



Business Firm



Offerings

• Profit


Nonprofit
Organization



Industry
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LO1



MAKING RESPONSIBLE DECISIONS
Using Social Entrepreneurship to Help People

Social Entrepreneurship

• Teach for
America

• SightLife

• Hand in
Hand Int’l

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FIGURE 2-A How an industry is structured

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LO1



TODAY’S ORGANIZATIONS
What is Strategy?

Can’t Be “All Things to All People”
• Limited Resources to Market Offerings



Strategy

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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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LO1

TODAY’S ORGANIZATIONS
STRUCTURE—CORPORATE & SBU



Corporate Level



Chief Marketing Officer (CMO)



Strategic Business Unit (SBU) Level
• Perfume
• Leather Goods

• Luggage
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LO1

TODAY’S ORGANIZATIONS
STRUCTURE—FUNCTIONAL



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

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LO2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL FOUNDATION (WHY)

Core Values
• Stakeholders



Mission or Vision
• Mission Statement



Organizational
Culture

Medtronic

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LO2

Star Trek Enterprise

Why is a mission statement important?

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LO2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)

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



Business Model
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LO2

MARKETING MATTERS
The Netflix Launch and
Its Continually Changing Business Model!

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LO2



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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LO2



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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LO2



STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (HOW)

Variation by Level
• Corporate



• SBU

• Functional

Variation by Offering
• Product

• Service

• Idea

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LO3

STRATEGY IN VISIONARY ORGANIZATIONS
DASHBOARDS, METRICS, AND PLANS



Marketing Dashboard



Marketing Metric



Marketing
Plan



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

Source: Dundas Data Visualization
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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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LO3

USING MARKETING DASHBOARDS
How Well is Ben & Jerry’s Doing?
Dollar Sales and Dollar Market Share

Dollar Market Share (%) =

Ben & Jerry's Sales ($)
Total Industry Sales ($)

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