McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc All Rights Reserved LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO: LO1 Describe the kinds of organizations that exist 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 how organizations set strategic directions by assessing where they are now and seek to be in the future 2-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO: LO4 Describe the strategic marketing process and its three key phases: planning, implementation, and evaluation LO5 Explain how the marketing mix elements are blended into a cohesive marketing program 2-3 AN “A” IN AN ICE CREAM MAKING COURSE! CAN THIS REALLY BECOME A BUSINESS? 2-4 TODAY’S ORGANIZATIONS LO1 KINDS OF ORGANIZATIONS  Organization – legal entity  Offerings (products, services, ideas)  Business Firms – for profit  Not-for-Profit Organizations  Industry 2-5 TODAY’S ORGANIZATIONS LO1 KINDS OF ORGANIZATIONS Used Interchangeably  Organization  Firm  Company  Corporation 2-6 LO1 TODAY’S ORGANIZATIONS WHAT IS STRATEGY?  Can’t Be “All Things to All People”  Strategy – long-term course of action designed to deliver a unique customer experience and accomplish organization’s goals  Marketing’s Role – help set direction and move organization there 2-7 TODAY’S ORGANIZATIONS LO1 STRUCTURE—CORPORATE  Corporate Level  Chief Marketing Officer (CMO) Cammie Dunaway Eduardo Conrado Leslie Short Yahoo! Motorola Networks FUBU 2-8 LO1 TODAY’S ORGANIZATIONS STRUCTURE—SBU  Strategic Business Unit (SBU) 2-9 TODAY’S ORGANIZATIONS LO1 STRUCTURE—SBU SBUs are key business units within diversified firms ● Each SBU: ● has its own managers, resources, objectives, and competitors ● pursues its own distinct mission ● develops its own plans independently ● focuses the attention of company managers so that they can respond effectively to changing consumer demand Business A business is the clear, broad, underlying industry category or market sector of an organization’s offering 2-65 Goals or Objectives Goals or objectives are the statements of an accomplishment of a task to be achieved, often by a specific time 2-66 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 2-67 Competencies Competencies consist of an organization’s special capabilities, including skills, technologies, and resources, which distinguish it from other organizations and provide value to its customers 2-68 Competitive Advantage A competitive advantage is an unique strength relative to competitors, often based on quality, time, cost, or innovation 2-69 Marketing Dashboard A marketing dashboard is the visual display on a single computer screen of the essential information related to achieving a marketing objective 2-70 Marketing Metric A marketing metric is a measure of the quantitative value or trend of a marketing activity or result 2-71 Marketing Plan A marketing plan is a road map for the marketing activities of an organization for a specified future period of time, such as one year or five years 2-72 Strategic Marketing Process The strategic marketing process is the approach whereby an organization allocates its marketing mix resources to reach its target markets 2-73 Situation Analysis A situation analysis involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it 2-74 SWOT Analysis A SWOT analysis is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats 2-75 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 2-76 Points of Difference Points of difference are those characteristics of a product that make it superior to competitive substitutes 2-77 Marketing Strategy Marketing strategy is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it 2-78 Marketing Tactics Marketing tactics are the detailed day-to-day operational decisions essential to the overall success of marketing strategies 2-79 ... AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO: LO4 Describe the strategic marketing process and its three key phases: planning, implementation, and evaluation LO5 Explain how the marketing mix... AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO: LO1 Describe the kinds of organizations that exist and the three levels of strategy in them LO2 Describe how core values, mission, organizational. .. accomplish organization’s goals  Marketing s Role – help set direction and move organization there 2-7 TODAY’S ORGANIZATIONS LO1 STRUCTURE—CORPORATE  Corporate Level  Chief Marketing Officer (CMO) Cammie