marketing 530 chapter 2

1. Developing Marketing Strategies and Plans 2

2. Developing Marketing Strategies and Plans A strategy is a theory about how to gain competitive advantages. A good strategy is a strategy that actually generates such advantages. Strategic management is the process of specifying an organizations objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. 1-

3. 1- Mission Statement Strategic Goals/Plans Senior Management (Organization as a whole) Tactical Goals/Plans Middle Management (Major divisions, functions) Operational Goals/Plans Lower Management (Departments, individuals) Internal Message Legitimacy, motivation, guides, rationale, standards External Message Legitimacy for investors, customers, suppliers, community Levels of Goals/Plans & Their Importance

12. Encyclopedia Britannica http://corporate.britannica.com The Encyclopædia Britannica was born in 18th-century Scotland amid the great intellectual ferment known as the Scottish Enlightenment. According to one chronicler of Britannica history, Edinburgh in the mid-1700s was "a city on the verge of a golden age, a center of learning and a home of writers, thinkers, and philosophers.“ The first edition of the Britannica was published one section at a time, over a three-year period, beginning in 1768. In 1990 Encyclopædia Britannica found itself in a precarious competitive environment. CD-ROMs and the internet had become the study tools of choice for students and others. Microsoft’s Encarta CD-ROM and IBM’s CD-ROM joint venture World Book were attracting Britannica’s customers. The result book sales fell 83% between 1990-1997. In 1994 the company developed Britannica Online, the first encyclopedia for the Internet, which made the entire text of the Encyclopædia Britannica available worldwide. That year the first version of the Britannica on CD-ROM was also published. According to a company official: “we’re reinventing our business. We are not in the book business. We’re in the information business.” By the 2006, the company had become a premier information site on the internet (200,000) subscribers and (150,000) web sites selected 1-

15. Marketing and Customer Value 1- Part 1: Marketing Value and Customer Value The value delivery process The value delivery process

20. 1- Part 1: Marketing Value and Customer Value

25. Holistic Marketing Framework The holistic marketing framework is designed to address three key management questions: 1. Value exploration - How can a company identify new value opportunities? 2. Value creation- flow can a company efficiently create more promising new value offerings? 3. Value delivery- How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?

26. A Holistic Marketing Orientation And Customer Value

27. A Holistic Marketing Orientation And Customer Value VALUE EXPLORATION VALUE EXPLORATION Because value flows within and across markets that are themselves dynamic and competitive, companies need a well-defined strategy for value exploration. Developing such a strategy requires an understanding of the relationships and interactions among three spaces: (1) the customer's cognitive space; (2) the company's competence space; and (3) the collaborator's resource space. The customer's cognitive space reflects existing and latent needs and includes dimensions such as the need for participation, stability, freedom, and change

38. 1- planning, implementation, and control cycle

41. Defining the Corporate Mission According to Peter Drucker, it is time to ask some fundamental questions. What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? Successful companies continuously raise these questions and answer them thoughtfully and thoroughly. 1-

43. 1- Organizations develop mission statements to share with managers, employees, and (in many cases) customers. A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and opportunity. The statement guides geographically dispersed employees to work independently and yet collectively toward realizing the organization's goals.

44. 1- Mission statements are at their best when they reflect a vision, an almost "impossible dream" that provides a direction for the company for the next 10 to 20 years. Good mission Statements Fred Smith wanted to deliver mail anywhere in the United States before 10:30 A.M. the next day, so he created FedEx.

45. Rubbermaid Commercial Products, Inc. “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our Uncompromising Commitment to Customer Satisfaction.”

46. Motorola “ The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”

47. eBay “ We help people trade anything on earth. We will continue to enhance the online trading experiences of all—collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers .”

53. Table 2.2 Product Orientation vs. Market Orientation Company Product Market Missouri-Pacific Railroad We run a railroad We are a people-and-goods mover Xerox We make copying equipment We improve office productivity Standard Oil We sell gasoline We supply energy Columbia Pictures We make movies We entertain people

54. 1- Strategic Business Units The purpose of identifying the company's strategic business units is to develop separate strategies and assign appropriate funding.

57. 1- Assessing Growth Opportunities

59. 1- Assessing Growth Opportunities

61. Slide 2-27 Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s

64. Slide 2-34 Ben & Jerry’s: a SWOT analysis to get it growing again

80. 1- Ansoff’s Product-Market Grid Current products New products Current Mkts New Mkts Mkt penetration strategy Mkt development strategy Product development strategy Diversification strategy