CHAPTER
DEVELOPING
SUCCESSFUL
MARKETING
AND
CORPORATE
STRATEGIES
DEFINITION OF ORGANIZATIONS
• Profit
• Organizations as defined by profit
 Business Firm
 Nonprofit Organization
Both commonly referred to as
the Firm
the Company
the Corporation
the Organization
ORGANIZATION’S LEVELS OF STRATEGY
 Corporate Level-create value for stockholders
 Business Unit Level- plan direction for each SBU
 Functional Level –execute plan on daily basis
 Department-specialized functions of daily operation
FOCUS OF THE STRATEGY
Mission -statement of the organization’s purpose
for existing, often identifying its customers,
markets, products, technology, and values.
 Goals or Objectives
• Profit
• Customer Satisfaction
• Sales
• Employee Welfare
• Market Share
• Social Responsibility
• Quality
SETTING STRATEGIC DIRECTIONS
• A Look Around: Where Are We Now?
 Identify your Customers
 Competencies-identify what you do best
• Competitive Advantage-your unique strength
 Competitors-identify the biggest threats
SETTING STRATEGIC DIRECTIONS
• Growth Strategies: Where Do We Want to Go?
 Business Portfolio Analysis (BCG Matrix)
• Market Growth Rate-vertical axis
• Relative Market Share-horizontal axis
 Stars
 Question Marks or Problem Children
(HH)
 Cash Cows
(LH)
(HL)
 Dogs
(LL)
Boston Consulting Group portfolio analysis for
Kodak sbu’s in 2003
Kodak digital
camera
Kodak film sales: US,
Canada, & W. Europe
Kodak digital
photo printer
Kodak selfservice kiosk
SETTING STRATEGIC DIRECTIONS
• Growth Strategies: How Do We Get There?
 Market-Product Analysis
• Market Penetration- same product; same market
• Market Development- same product; new market
• Product Development-new product; same market
• Diversification -
new product; new market
Four market-product strategies: alternative ways
to expand sales revenues for Ben & Jerry’s
THE STRATEGIC MARKETING
PROCESS
• 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?
 Marketing Plan
THE STRATEGIC MARKETING
PROCESS -The Planning Phase
 Step 1: SWOT Analysis
GOOD NOW
Maintain & build
BAD NOW
Remedy or stop
GOOD FUTURE
Prioritize &
optimize
BAD FUTURE
Intercept and
counter
Ben & Jerry’s: SWOT analysis
Which Product-Which Customers
 Step 2: Market-Product Focus and Goal Setting
• Market Segmentation
• Set Marketing and Product Goals
• Select Target Markets
• Find Points of Difference
• Position the Product
Marketing Program Strategy
 Step 3: Marketing Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
Elements of the marketing mix that comprise a
cohesive marketing program
THE STRATEGIC MARKETING PROCESSThe Implementation Phase
 Obtaining Resources
Designing the Marketing Organization
-delegating who does what
Developing Schedules-Linear or Gantt
Tasks to complete a term project
Gantt chart for scheduling the term project
THE STRATEGIC MARKETING PROCESSThe Control Phase
 Comparing Results With Plans to Identify Deviations
• Filling the Planning Gap – Marketing’s Job
 Acting on Deviations
Evaluation & control of Kodak’s marketing program
Profit
Profit is the reward to a business firm for
the risk it undertakes in offering a
product for sale. It is also the money left
over after a firm’s total expenses are
subtracted from its total sales.
Mission
Mission is a statement of the
organization’s scope, often identifying its
customers, markets, products, technology,
and values.
Goals or Objectives
Goals or objectives convert the mission
into targeted levels of performance to be
achieved, often by a specific time.
Market Share
Market share is the ratio of sales revenue
of the firm to the total sales revenue of all
firms in the industry, including the firm
itself.
Marketing Plan
A marketing plan is a road map for the
marketing activities of an organization for
a specified future period of time. It
allocates the 4P’s of a firm to reach the
target market.
SWOT Analysis
SWOT analysis is an acronym describing
an organization’s appraisal of its internal
Strengths and Weaknesses and its
external Opportunities and Threats.
Market Segmentation
Market segmentation involves
aggregating prospective buyers into
groups, or segments, that (1) have
common needs and (2) will respond
similarly to a marketing action.
Points of Difference
Points of difference are those
characteristics of a product that make it
superior to competitive substitutes.