June 26th.ppt

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Transcript June 26th.ppt

How often do you eat a bowl of Cereal?

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How often do you eat cereal other than for breakfast?

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Cereality

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Chapter 2 Planning, Implementing, and Controlling Marketing Strategies

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STRATEGIC PLANNING

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

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

Coca Cola’s Strategic Priorities

1. Accelerate carbonated soft-drink growth, led by Coca-Cola.

2. Selectively broaden our family of beverage brands to drive profitable growth.

3. Grow system profitability and capability together with our bottling partners.

4. Serve customers with creativity and consistency to generate growth across all channels.

5. Direct investments to highest-potential areas across markets.

6. Drive efficiency and cost effectiveness everywhere.

Coca Cola, “Six Strategic Priorities(2002), http://www2.coca-cola.com/investors/annualreport/2002/sixstrateg.htm

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Marketing Strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.

–

Marketing Plan

(Lipton targets health-concious consumers. Page 29) 2 | 8

• Assessing financial and human resources – Capabilities vs. changes – Marketing and financial affect • Goodwill, reputation as resources and brand Copyright © Houghton Mifflin Company. All rights reserved.

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Core Competencies

Things a firm does extremely well, which sometimes give it an advantage over its competition.

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Market Opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market.

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Strategic Windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in the market.

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Competitive Advantage

The result of a company’s matching a core competency to opportunities it has discovered in the marketplace.

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SWOT Analysis

S trengths W eaknesses O pportunities T hreats Figure 2.2

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ESTABLISHING AN ORGANIZATIONAL MISSION AND GOALS

• •

Mission Statement Answers :

– Who are our customers? – What is our core competency?

Corporate Identity

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Marketing Objective Characteristics

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Which of the following would be a good objective?

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

Promotional Elements Jordan’s Furniture at

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

Microsoft Announces Shift In Corporate Strategy

• “Trustworthy Computing” • Emphasize security and privacy over new capabilities • Highest priority is to ensure that computer users continue to venture across an increasingly Internet-connected world • “Microsoft announces corporate strategy toward security and privacy” Information Security News, “Microsoft announces corporate strategy toward security and privacy”, Jan. 2002, http://seclists.org/lists/isn/2002/Jan/0092.html

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Which video game console maker was the “winner” last year?

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Business-Unit Strategy

• Strategic Business Unit (SBU) – A division, product line, or other profit center within the parent company.

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

Band-Aid is a strategic business unit of Johnson&Johnson

Reprinted with permission of Johnson & Johnson Consumer Companies, Inc.

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Growth Share Matrix

Figure 2.4

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5.

THE MARKETING PLAN

The process of assessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies, and establishing guidelines for implementation and control of the marketing program.

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6.

MARKETING IMPLEMENTATION

The process of putting marketing strategies into action.

– –

Intended Strategy Realized Strategy

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Components Of The Marketing Plan

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Controlling Marketing Activities

Figure 2.5

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The Marketing Environment

The Natural Environment

– Concern for the natural environment has grown steadily, increasing the importance of these trends: • Shortage of raw materials • Increased pollution • Increased green marketing/emphasis on sustainability Copyright © Houghton Mifflin Company. All rights reserved.

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China Looming (2004)

• China second largest consumer of oil (after the U.S.) Currently at 8% • China has been responsible for nearly two-fifths of the increase in global consumption since 2000. • China's surge in energy demand is also the main reason for the doubling in the world price of coal over the past year. Last year China consumed 40% of all the coal and 30% of all the steel in the world. Copyright © Houghton Mifflin Company. All rights reserved.

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1. THE MARKTING ENVIRONMENT

•

Environment Scanning

: The process of collecting information about the forces in the marketing environment.

•

Environmental Analysis

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

Objectives Of Environmental Scanning

 Detect scientific, technical, economic, social and political trends/events  Define potential threats, opportunities, or changes implied by trends/events  Promote future orientation in management/staff thinking  Alert management/staff to trends converging, diverging, speeding up, slowing down or interacting Horizon Site, “Environmental Scanning” by James Morrison, 1992, http://horizon.unc.edu/courses/papers/enviroscan/ Copyright © Houghton Mifflin Company. All rights reserved.

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Responding To Environmental Forces

• Accept as uncontrollable- passive and reactive • Attempt to influence and shape them-proactive – Constructive – Bring desired results – Are limits (Toyota responding to environmental forces. Page 59) Copyright © Houghton Mifflin Company. All rights reserved.

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2. COMPETITIVE FORCES

•

Competition

– Brand Competitors – Product Competitors – Generic Competitors – Total Budget Competitors (Volvic brand competitors include Fiji and Evian. Page 60) Copyright © Houghton Mifflin Company. All rights reserved.

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Competitive

Structures

Royal Mail Monopoly

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Monitoring Competition

• Price- most competitors monitor • Do more than analyze information • Develop ongoing system for gathering information • Understand market - customer needs • Helps in recognition of own strategy flaws Copyright © Houghton Mifflin Company. All rights reserved.

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3. ECONOMIC

FORCES

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Buying Power

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2000 Median Household income

All $37,000 African-American $29,500 Hispanic $28,600 Caucasian $48,100 Asian-Pacific Islander $54,100

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2004 Mean Household income

All $60,500 African-American $40,700 Hispanic $45,900 Caucasian $65,300 Asian-Pacific Islander $76,700

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Willingness To Spend

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces.

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 Figure 3.1

American Consumer Satisfaction Index

Source:

“American Customer Satisfaction Index,” University of Michigan Business School, Sept. 2005,

www.theacsi.com

“U.S. Automakers Slipping in Consumer Satisfaction”

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4. POLITICAL FORCES

• Legislation enacted • Legal decisions interpreted by courts • Regulatory agencies created and operated • Marketers – Adjust to conditions – Influence through contributions Copyright © Houghton Mifflin Company. All rights reserved.

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Top Corporate Donors By Political Party

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5. LEGAL AND REGULATORY FORCES

• Procompetitive legislation- preserves competition • Consumer Protection legislation – – Protect people from harm Prohibit hazardous products – – Information disclosure Particular marketing activities • Encourage compliance • Regulatory Agencies • Self-Regulatory forces Copyright © Houghton Mifflin Company. All rights reserved.

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Regulatory Agencies

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Self-Regulatory Forces

• Trade Associations • • Better Business Bureau National Advertising Review Board • Advantages – – Less expensive More realistic • Limitations – – Nonmember firms do not have to abide Lack of enforcement tools – Often less strict Copyright © Houghton Mifflin Company. All rights reserved.

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6.

TECHNOLOGICAL FORCES

•Impact of Technology – Effects include: • Dynamics • Reach • Self-Sustaining •Adoption and Use of Technology (Monster.com has changed the way people search for jobs. Page 72) 2 | 49 Copyright © Houghton Mifflin Company. All rights reserved.

Who is the number one seller of music in the world?

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7.

SOCIOCULTURAL FORCES

The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles.

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Issues Of Sociocultural Forces

• Demographic and diversity characteristics – Age, gender, race, ethnicity – Marital/parental status , income, education • Cultural Values – Health – Family – Environment • Consumerism- efforts to protect consumers’ rights Copyright © Houghton Mifflin Company. All rights reserved.

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

Marketing to changing demographics # of People age 65 an older will double by 2050

Reprinted with permission by Allianz Life Insurance Company of North America 2 | 53

Costco

• Markups only 14% • Hourly employees $40,000 after 4 years • Generous return policy – “Costco continues to be a company that is better at serving the club member and employee than the shareholder” • Axioms – 1. Obey the law – 2. Take care of your customers – 3. Take care of your employees – 4. Practice the intelligent loss of sales (SKUs) Copyright © Houghton Mifflin Company. All rights reserved.

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Organizational Culture

•

Organizational culture

shared values and beliefs that underlie a company’s identity.

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Layers of Organizational Culture 2-3

Observable Artifacts Espoused Values Basic Underlying Assumptions

Source: Adapted from E H Schein, Organizational Culture and Leadership, 2 nd ed (San Francisco: Jossey-Bass, 1992), p 17.

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Four Functions of Organizational Culture 2-4 Figure 2-2 Organizational identity Sense-making device Organizational culture Collective commitment Social system stability Copyright © Houghton Mifflin Company. All rights reserved.

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Types of Organizational Culture

2-5 Table 2-1

General Types of Culture Constructive Constructive Constructive Constructive Normative Beliefs Achievement Self actualizing Humanistic encouragin Affiliative g Organizational Characteristics Goal and achievement oriented Value self-development and creativity Participative, employee centered, and supportive High priority on constructive interpersonal relationships, and focus on work group satisfaction

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Types of Organizational Culture (Cont.)

General Types of Culture Passive defensive Passive defensive Passive defensive Passive defensive Normative Beliefs Approval Convention al Dependent Avoidance

2-6 Table 2-1

Organizational Characteristics Avoid conflict, strive to be liked by others and approval oriented Conservative, bureaucratic and people follow the rules Nonparticipative, centralized decision-making, and employees do what they’re told Negative reward system and avoid accountability

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Types of Organizational Culture (Cont.)

2-7 Table 2-1

General Types of Culture Aggressive defensive Aggressive defensive Aggressive defensive Aggressive defensive Normative Beliefs Oppositional Power Competitive Perfectionis tic Organizational Characteristics Confrontation and negativism awarded Nonparticipative, take charge of subordinates and responsive to superiors Winning is valued and a win lose approach is used Perfectionistic, persistent and hard working

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What researchers have learned

• Constructive culture is positively related with employee behavior and attitude (DUHHHH) • People felt more comfortable in companies whose culture matched their personal value systems (Double Duhhhh) • No correlation between company culture and financial performance (Whatttt?) • Flexible cultures more likely to yield higher financial performance (Interesting) • 7 of 10 mergers and acquisitions fail to meet their financial promise (can culture be an issue? HP/Compaq) Copyright © Houghton Mifflin Company. All rights reserved.

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Embedding Organizational Culture

Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization The design of physical space, work environments, and buildings Slogans, language, acronyms, and sayings 3.

Deliberate role modeling, training programs, teaching and coaching by managers and supervisors Explicit rewards, status symbols (e.g., titles), and promotion criteria 6.

Stories, legends, and myths about key people and events

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Embedding Organizational Culture (Cont.) 2-9

The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure 10.

Organizational systems and procedures 11.

Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people

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HR Embeds Organizational Culture • • • •

HR is the keeper of:

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Embedding a Culture Based on a Founder’s Personality L2-2 •

HR Benefits when:

The founder’s personality is charismatic, vibrant, honest and ethical • Leonard Gentine of Sargento Foods: after his death, the family keeps his spirit alive through his image and presenting a Founder’s Ring to employees best displaying Sargento culture • Charles Schwab believed that employees should follow the company’s values or be fired: his own son was fired after giving investment advice: a no-no in Schwab culture Copyright © Houghton Mifflin Company. All rights reserved.

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Embedding a Culture Based on a Founder’s Personality • • •

HR is challenged when:

The founder is involved in scandal or engages in questionable public activity Henry Ford stepped down from the L2-3 company and got involved in politics and anti-Semitism Martha Stewart carefully crafted her brand based on her image as a wholesome homemaker only to be convicted of securities fraud Copyright © Houghton Mifflin Company. All rights reserved.

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HR and Employee Ownership • • • • Our Culture L2-4

HR builds employee ownership of culture: Peg employee recognition to the corporate culture.

Connect culture to the bottom line.

Emphasize the company’s history.

Communicate constantly with all levels of employees.

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A Model of Organizational Socialization

Phases

2-10 Figure 2-3

Perceptual and Social Processes

• Anticipating realities about the organization and the new job • Anticipating organization’s needs for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values 2 | 70

A Model of Organizational Socialization (Cont.)

Phases

2-11 Figure 2-3

Perception and Social Processes

• Managing lifestyle versus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics 2 | 71

A Model of Organizational Socialization (Cont.)

Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms

2-12 Figure 2-3

Perception and Social Processes

•

Competing role demands are resolved

•

Critical tasks are mastered

•

Group norms and values are internalized

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Examples of Socialization

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Socialization Tactics

2-14 Table 2-2

Tactic

Collective vs. Individual Formal vs. Informal Sequential vs. Random

Description

Collective: consists of grouping newcomers and exposing them to a common set of experiences; Individual: exposing each individually to a set of unique experiences Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression Copyright © Houghton Mifflin Company. All rights reserved.

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Socialization Tactics (Cont.)

Tactic

Fixed vs. Variable Serial vs. Disjunctive 2-15 Table 2-2

Description

Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model Investiture vs. Divestiture Investiture: affirmation of newcomer’s incoming global and specific role identities and attributes; Divestiture: denial and stripping away of the newcomer’s existing sense of self to rebuild in the organization’s image Copyright © Houghton Mifflin Company. All rights reserved.

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Mentoring and Functions of Mentoring

2-16 

Mentoring

is the process of forming and maintaining developmental relationships between a mentor and a junior person

Functions of Mentoring

•

Career Functions

- Sponsorship - Exposure-and-visibility - Coaching - Protection - Challenging assignments •

Psychosocial Functions

- Friendship 2 | 76

June 26th.ppt

Transcript June 26th.ppt

How often do you eat a bowl of Cereal?

How often do you eat cereal other than for breakfast?

Cereality

Chapter 2

Planning, Implementing, and Controlling Marketing Strategies

STRATEGIC PLANNING

Coca Cola’s Strategic Priorities

Marketing Strategy

ASSESSING ORGANIZATIONAL RESOURCES AND OPPORTUNITIES

Core Competencies

Market Opportunity

Strategic Windows

Competitive Advantage

SWOT Analysis

Marketing Objective Characteristics

Which of the following would be a good objective?

Promotional Elements Jordan’s Furniture at

Microsoft Announces Shift In Corporate Strategy

Which video game console maker was the “winner” last year?

Business-Unit Strategy

Growth Share Matrix

THE MARKETING PLAN

MARKETING IMPLEMENTATION

Components Of The Marketing Plan

Controlling Marketing Activities

The Marketing Environment

The Natural Environment

China Looming (2004)

THE MARKTING ENVIRONMENT

Objectives Of Environmental Scanning

Responding To Environmental Forces

COMPETITIVE FORCES

Competitive

Structures

Monitoring Competition

ECONOMIC

FORCES

Buying Power

2000 Median Household income

2004 Mean Household income

Willingness To Spend

American Consumer Satisfaction Index

POLITICAL FORCES

Top Corporate Donors By Political Party

LEGAL AND REGULATORY FORCES

Regulatory Agencies

Self-Regulatory Forces

TECHNOLOGICAL FORCES

Who is the number one seller of music in the world?

SOCIOCULTURAL FORCES

Issues Of Sociocultural Forces

Marketing to changing demographics # of People age 65 an older will double by 2050

Costco

Organizational Culture

Types of Organizational Culture

Types of Organizational Culture (Cont.)

Types of Organizational Culture (Cont.)

What researchers have learned

Embedding Organizational Culture

Examples of Socialization

Socialization Tactics

Socialization Tactics (Cont.)

Mentoring and Functions of Mentoring

Directory