LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:
Describe three kinds of organizations and the three levels of strategy in them.
Describe core values, mission, organizational culture, business, and goals.
Explain why managers use marketing dashboards and marketing metrics.
Discuss how an organization assesses where it is now and where it seeks to be.
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Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Describe three kinds of organizations and the three levels of strategy in them.Explain why managers use marketing dashboards and marketing metrics.LO 2-3LO 2-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:LO 2-1Describe core values, mission, organizational culture, business, and goals.LO 2-4Discuss how an organization assesses where it is now and where it seeks to be.2-*LO 2-6LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:LO 2-5Explain the three steps of the planning phase of the strategic marketing process.Describe the four components of the implementation phase of the strategic marketing process.LO 2-7Discuss how managers identify and act on deviations from plans.2-*STARTING A BUSINESS BY GETTING AN “A”IN AN ICE CREAM-MAKING COURSE!2-*TODAY’S ORGANIZATIONSKINDS OF ORGANIZATIONSLO 2-1OrganizationOfferingsFor-Profit Organization (Business Firm)Nonprofit OrganizationIndustryProfitGovernment Agency2-*FIGURE 2-A How an industry is structured2-*MAKING RESPONSIBLE DECISIONSUsing Social Entrepreneurship to Help PeopleSocial EntrepreneurshipLO 2-12-*FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional2-*StrategyTODAY’S ORGANIZATIONSSTRATEGY AND ORGANIZATIONAL STRUCTURELO 2-1Can’t Be “All Things to All People”Corporate LevelChief Marketing Officer (CMO)Strategic Business Unit(SBU) LevelPerfumeLeatherGoodsLuggage2-*TODAY’S ORGANIZATIONSSTRATEGY AND ORGANIZATIONAL STRUCTURELO 2-1Functional LevelDepartmentCross-Functional Teams2-*FIGURE 2-2 Visionary organizations:(1) establish a foundation, (2) set a direction, and (3) create strategies to successfully develop and market their offerings 2-*STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL FOUNDATION (WHY)LO 2-2Core ValuesOrganizationalCultureMission or VisionMission StatementStakeholdersMedtronic2-*Star Trek’s Star Ship EnterpriseWhy is a mission statement important?LO 2-22-*STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)LO 2-2What do we do?What businessare we really in?BusinessBusinessModel2-*MARKETING MATTERSAngry Birds: Discovering Its Business ModelAngry BirdsVideoLO 2-22-*STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)LO 2-2ProfitSales ($ or #)Market ShareCustomer SatisfactionEmployee WelfareSocial ResponsibilityQualityEfficiencyGoals or Objectives2-*Goals or Objectives: S.M.A.R.TSTRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL DIRECTION (WHAT)LO 2-2SpecificMeasurableRelevantAttainableTime-Based2-*STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL STRATEGIES (HOW)LO 2-2Variation by LevelVariation by OfferingCorporateSBUFunctionalProductServiceIdea2-*STRATEGY IN VISIONARY ORGANIZATIONSORGANIZATIONAL STRATEGIES (HOW)LO 2-2MarketingPlan BusinessPlan Long-RangeAnnual2-*FIGURE 2-B Elements in typical marketing and business plans targeted at different audiences2-*STRATEGY IN VISIONARY ORGANIZATIONS TRACKING STRATEGIC PERFORMANCELO 2-3Marketing DashboardMarketing MetricData Visualization2-*FIGURE 2-3 An effective marketing dashboard like Sonatica’s helps managers assess a business situation at a glance Source: Dundas Data Visualization2-*FIGURE 2-3A Marketing Dashboard: Website Traffic Sources2-*FIGURE 2-3B Marketing Dashboard: Sales Performance by SBU2-*FIGURE 2-3C Marketing Dashboard: Monthly Website Visits by State2-*USING MARKETING DASHBOARDSHow Well is Ben & Jerry’s Doing?LO 2-3Dollar Sales and Dollar Market Share2-*SETTING STRATEGIC DIRECTIONSWHERE ARE WE NOW?LO 2-4Competitive AdvantageCompetenciesCustomers2-*SETTING STRATEGIC DIRECTIONSWHERE ARE WE NOW?LO 2-4CompetitorsWho are Lands’ End’s Intertype Competitors?2-*SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?LO 2-4Business Portfolio Analysis (BCG Matrix)Market Growth Rate Stars Cash Cows Dogs Question MarksRelative Market Share High High Low Low2-*Apple Consumer-Related ProductsWhat SBU type in the BCG growth-share matrix?LO 2-4TabletsSmartphonesMP3 PlayersDesktop/Laptop PCs2-*MARKETING MATTERSWhere Will Apple’s Future SBU Growth Come From?1. _______________________________________ 2. _______________________________________ 3. _______________________________________ 4. _______________________________________ LO 2-42-*FIGURE 2-4 BCG business portfolio analysis for Apple’s consumer SBUs starting in 2013 and projected to 20162-*Diversification AnalysisMarket PenetrationMarket DevelopmentProduct DevelopmentDiversificationSETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?LO 2-42-*FIGURE 2-5 Four alternative market-product strategies for Ben & Jerry’s to expand sales revenues using diversification analysis2-*THE STRATEGIC MARKETING PROCESSLO 2-5How Do We AllocateOur Resources to Get toWhere We Want to Go? Strategic Marketing ProcessHow Do We ConvertOur Plans into Actions? How Do Our Results CompareWith Our Plans and DoDeviations Require New Plans? 2-*FIGURE 2-6 The strategic marketing process has three phases: planning, implementation, and evaluation 2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5 Weaknesses Strengths Threats OpportunitiesSituation AnalysisSWOT AnalysisStep 1: Situation (SWOT) Analysis2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5Step 1: Situation (SWOT) Analysis Analyze Competitors Identify Industry Trends Research Present and Prospective Customers Assess the OrganizationSWOT Analysis Study2-*FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth 2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5Step 1: Situation (SWOT) Analysis Correct a Weakness Build on a Strength Avoid a Disaster- Laden Threat Exploit an OpportunitySWOT Analysis Actions2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5Market SegmentationPoints of DifferenceStep 2: Market-Product Focus and Goal Setting2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5Set Marketing & Product GoalsSelect Target MarketsFind Points of DifferencePosition the ProductExample: Medtronic’s Pacemaker2-*THE STRATEGIC MARKETING PROCESSTHE PLANNING PHASELO 2-5Product StrategyPrice StrategyPromotion StrategyPlace (Distribution) StrategyStep 3: Marketing Program2-*FIGURE 2-8 The four Ps elements of the marketing mix must be blended to producea cohesive marketing program 2-*THE STRATEGIC MARKETING PROCESSTHE IMPLEMENTATION PHASELO 2-6Obtaining ResourcesDesigning the Marketing OrganizationDefining Precise Tasks, Responsibilities, and DeadlinesExecuting the Marketing ProgramMarketing StrategyMarketing Tactics2-*FIGURE 2-9 Organization of a typical manufacturing firm, showing a breakdownof the marketing department 2-*THE STRATEGIC MARKETING PROCESSTHE IMPLEMENTATION PHASELO 2-6Staff PositionsLine PositionsLine vs. Staff and Divisional GroupingsCategory ManagerFunctionalGroupingsProduct LineGroupingsGeographicalGroupingsMarket-BasedGroupingsRole of the Product/Brand Manager2-*THE STRATEGIC MARKETING PROCESSTHE IMPLEMENTATION PHASELO 2-6Defining Precise Tasks, Responsibilities, and DeadlinesGantt Chart Action Item List2-*FIGURE 2-E Tasks and time needed to complete a term project 2-*FIGURE 2-10 Gantt chart for scheduling a term project that distinguishes sequential and concurrent tasks 2-*THE STRATEGIC MARKETING PROCESSTHE EVALUATION PHASELO 2-7Exploiting a Positive DeviationCorrecting a Negative DeviationActing on DeviationsPlanning GapComparing Results withPlans to Identify Deviations2-*FIGURE 2-11 The evaluation phase requires that Apple compare actual results with goals to identify and act on deviations to fill in the “planning gap” by 2012 2-*IBM: USING STRATEGY TO BUILDA “SMARTER PLANET”VIDEO CASE 22-*