2006 McGraw-Hill Companies, Inc.

, McGraw-Hill/Irwin Slide 22-7

MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES
Finding and Using What Really Works
Strategy: Focused
Execution: Flawless Operations
Culture: Performance-Oriented
Structure: Fast, Flexible, and Flat
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-9
MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES
Allocating Marketing Resources Using
Sales Response Functions
Sales Response Function
Maximizing Incremental Revenue Minus
Incremental Cost
A Numerical Example of Resource Allocation
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-10
FIGURE 22-1 Sales response function
showing the situation for two different years
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-12
MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES
Allocating Marketing Resources Using
Sales Response Functions
Allocating Marketing Resources in Practice
Share Points
Resource Allocation and the Strategic
Marketing Process
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-13
FIGURE 22-2 The strategic marketing
process: actions and information
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-14
FIGURE A The strategic marketing phases
and corresponding output reports
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-15
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Long-Range Marketing Plans
Annual Marketing Plans
The Variety of Marketing Plans
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-3 Steps a large consumer
packaged goods firm takes in developing its
annual marketing plan
Slide 22-16
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-21
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Porters Generic Business Strategies
Marketing Planning Frameworks:
The Search for Growth
Generic Business Strategy
Cost Leadership Strategy
Differentiation Strategy
Cost Focus Strategy
Differentiation Focus Strategy
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-22
FIGURE 22-4 Porters four generic business
strategies
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-23
Wal-Mart and Volkswagen
Which of Porters generic business strategies
do these firms use?
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-24
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Marketing Planning Frameworks:
The Search for Growth
Market Penetration
Product Development
Market Development
Diversification
Profit Enhancement Option: Increase
Revenues
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-25
FIGURE 22-5 Profit enhancement options
for increasing a firms profits
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-26
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Profit Enhancement Option: Decrease Costs
Marketing Planning Frameworks:
The Search for Growth
Economies of Scale/Experience Curve
Other Ways: Layoffs, Training, and/or Quality
Profit Enhancement Option: Do Both
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-27
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Market-Product Synergies
Marketing Planning Frameworks:
The Search for Growth
Marketing Synergies (Rows)
R&DManufacturing Synergies (Columns)
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-28
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Market-Product Synergies
Marketing Planning Frameworks:
The Search for Growth
Market-Product Concentration
Market Specialization
Product Specialization
Selective Specialization
Full Coverage
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
The Strategy Issue for the
New MillenniumFinding Synergies
Slide 22-29
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-6 Market-product grid of
alternative strategies for a lawnmower
manufacturer
Slide 22-30
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-7 An ideal merger for Great
States to obtain full market-product
coverage
Slide 22-31
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-37
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
One-Handedness Convenience
Joint Ventures
Some Planning and Strategy Lessons
Big G plus Pillsbury: Synergies, Segments,
and Partners
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
Slide 22-38
Keeping Planning Simple at Big G:
One-Handed Convenience
Plus Cover All the Bases
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-41
THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
Value-Based Planning
Value-Driven Strategies
Some Planning and Strategy Lessons
Balancing Value and Values in Strategic
Marketing Plans
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-42
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Is Planning or Implementation the
Problem?
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-44
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Increasing Emphasis on Marketing
Implementation
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
Slide 22-45
GEs Implementation StrategiesHow
Neutron Jack Became One of the Most
Acclaimed CEOs of the 20th Century
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-46
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Product or Program Champion
Improving Implementation of Marketing
Programs
Communicate Goals and the Means of
Achieving Them
Have a Responsible Program Champion
Willing to Act
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-47
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Improving Implementation of Marketing
Programs
Foster Open Communication to Surface
Problems
Reward Successful Program Implementation
Take Action and Avoid Paralysis by Analysis
Avoid the NIH Syndrome
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-50
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Improving Implementation of Marketing
Programs
Schedule Precise Tasks, Responsibilities,
and Deadlines
Action Item List
Program Schedules
Gantt Chart
Sequentially Concurrently
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-51
FIGURE 22-E Tasks to complete a term
project
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-52
FIGURE 22-8 Gantt chart for scheduling the
term project
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-56
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Line versus Staff and Divisional Groupings
Staff Positions
Organizing for Marketing
Line Positions
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-9 Organization of a business
unit in a typical consumer packaged goods
firm, showing two product or brand groups
Slide 22-57
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-58
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Line versus Staff and Divisional Groupings
Organizing for Marketing
Product Line Groupings
Functional Groupings
Geographical Groupings
Market-Based Groupings
Matrix Organization Category Manager
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-59
THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
Role of the Product Manager
Organizing for Marketing
Product Manager
Brand Manager
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-60
FIGURE 22-10 Units with which the product
manager and product group work
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-61
The Marketing Control Process
THE CONTROL PHASE OF THE
STRATEGIC MARKETING PROCESS
Management by Exception
Measuring Results
Taking Marketing Actions
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-62
FIGURE 22-11 The control phase of the
strategic marketing process
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-64
Sales Analysis
THE CONTROL PHASE OF THE
STRATEGIC MARKETING PROCESS
Sales Analysis
Profitability Analysis
ROI Marketing
Sales Component (Microsales) Analysis
Profitability Analysis and ROI Marketing