Developing Successful Marketing Strategies © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. Learning Objectives After reading this chapter, you should be able to: 1.Describe the kinds of organization that exist and the three levels of strategy in them. 2.Describe how core value, mission, organizational culture, business, and goals are important in organizations. 3.Explain how organizations set strategic directions and tracks performance by using marketing dashboards and metrics. 4.Describe the strategic marketing process and its three key phases: planning, implementation, and evaluation. 5.Explain how the marketing mix elements are blended into a cohesive marketing program. © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. DEVELOPING SUCCESSFUL MARKETING STRATEGIES ‣ Canadian Tire: The Creation and Growth of a Visionary Organization ‣ Canadian company ‣ Founded in 1927 ‣ Current Revenue of more than $11 Billion Annually ‣ More than 57,000 employees © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. DEVELOPING SUCCESSFUL MARKETING STRATEGIES ‣ Today’s Organizations ‣ Kinds of Organization ‣ Business firms ‣ Non-profit organizations ‣ What is Strategy? ‣ Long-term course of action designed to deliver a unique customer experience while achieving organizational goals. ‣ Structure of Today’s Organization ‣ Corporate level ‣ Strategic Business unit level ‣ Functional level © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 1 FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 1 STRATEGY IN VISIONARY ORGANIZATIONS ‣ Organizational Foundation: Why does it exist? ‣ Core Values ‣ Mission ‣ Organizational Culture © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 2 FIGURE 2-2 Today’s visionary organization uses key elements to (1) establish a foundation and (2) set a direction using (3) its strategies that enable it to develop and market its offerings successfully © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 2 STRATEGY IN VISIONARY ORGANIZATIONS ‣ Organizational Direction: What will it do? ‣ Business and Business Model ‣ Goals (SMART) ‣ ‣ ‣ ‣ ‣ ‣ ‣ ‣ Profit Sales revenue Market share Unit sales Quality Customer satisfaction Employee welfare Social responsibility © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 2 SETTING STRATEGIC DIRECTIONS ‣ A Look Around: Where Are We Now? ‣ Competencies ‣ Competitive advantage ‣ Quality ‣ Benchmarking ‣ Customers ‣ Competitors © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 3 Growth Strategies: Where do we want to go? Boston Consulting Group Portfolio Analysis Growth Strategies: Where do we want to go? ‣ Strategies? ‣ ‣ ‣ ‣ Build (Invest) Hold Harvest Divest Market Product Analysis Four Strategies SETTING STRATEGIC DIRECTION ‣ Tracking Strategic Performance with Marketing Dashboards and Metrics ‣ Car Dashboards and Marketing Dashboards ‣ Marketing Dashboard ‣ Marketing Metric ‣ Marketing Plan © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 3 THE STRATEGIC MARKETING PROCESS ‣ Strategic Marketing Process: The Planning Phase ‣ Step 1: Situation (SWOT) Analysis ‣ SWOT analysis (probability and impact) ‣ Step 2: Market-Product Focus and Goal Setting ‣ ‣ ‣ ‣ Set marketing and product goals Select target markets Find points of difference Position the product ‣ Step 3: Marketing Program ‣ Product, Price, Promotion & Place (distribution) strategies © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 4, 5 SWOT Analysis ‣ In this video, it is stated that a number of people who create SWOT analyses stop after identifying each of the components of SWOTs and go no further. What is the next step the video refers to? ‣ What is the strategist supposed to do next? Now that we know there is more work to do? FIGURE 2-6 Ben & Jerry’s: A SWOT analysis to get it growing again in Canada © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 4 FIGURE 2-7 Elements of the marketing mix that comprise a cohesive marketing program © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 4, 5 THE STRATEGIC MARKETING PROCESS ‣ Strategic Marketing Process: The Implementation Phase ‣ Obtaining Resources ‣ Designing the Marketing Organization ‣ Developing Schedules ‣ Executing the Marketing Program ‣ Marketing strategy ‣ Marketing tactics © 2011 McGraw-Hill Ryerson Ltd. All rights reserved. LO 5