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2.strategy hierarchy
The document discusses the strategy hierarchy in organizations. At the highest level is the corporate strategy, which sets the overall goals and plans for the entire company. Individual business units like marketing then develop their own strategies to support the corporate strategy. The marketing strategy addresses questions like which markets and products to target. The direct marketing strategy would then outline objectives, media choices, and processes for direct marketing campaigns to support the overall marketing strategy.
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2.strategy hierarchy
- 1. 1 ? ACCMAN Direct Marketing StrategyHierarchy 07/04/15 1
- 2. 2 “A major changethat is reshaping the face of selling is the growth of direct marketing. This session explores the major changes that are taking place, the key tools that can be used and how the direct marketing process can be effectively managed. It begins by explaining the meaning of direct marketing before discussing the use of database marketing. The management of direct marketing activities will then be explored, including setting objectives, targeting, achieving customer retention and creating action plans”. ACCMAN Importance of this course Direct Marketing Contemporary Direct Marketing 07/04/15
- 3. The Strategy Hierarchy •A strategy is a plan designed to accomplish a mission. • A mission is a set of objectives. • Once the mission’s objectives are set, strategy can be created. Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 3
- 4. Company Mission Statements IBMwill be driven by these values: • Dedication to every client’s success • Innovation that matters, for our company and for the world Coca-Cola • To refresh the world ..in body, mind, and spirit Dell • Delivering the best customer experience in markets we serve ACCMAN • To train future global business leaders with cutting edge management skills. Chick- Fil -A • Be American’s best quick-service restaurant Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 4
- 5. Strategy Hierarchy • Afirm’s corporate strategy encompasses its plan and goals for the entire organization. • Once the company’s strategy is formulated, it is then communicated to various business units- marketing, sales, manufacturing, and so forth- who create their own plans to support the corporate strategy. The flow of the strategy from the organization level to the unit level is called the strategy hierarchy. CORPORATE STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 5
- 6. Strategy Hierarchy An abbreviatedexample of how a firm’s strategy might be different at different levels of the organization. CORPORATE STRATEGY “To be a leader in womometer technology” MARKETING STRATEGY “To sell womometer to space engineers and to hydraulic engineers at a premium price” DIRECT MARKETING STRATEGY ? Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 6
- 7. Strategy Hierarchy • Notethat firm’s marketing plan is likely to precede its sales plan. This order does not imply that sales executives do not participate in the process until after the firm’s marketing plan is done. • Rather, marketing and sales work together to create an overall marketing strategy. • Then the sales executives must create the action plans specifically for salespeople to carry out the strategy. Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 7
- 8. Strategy Hierarchy At themarketing level, planners have to answer the following four questions: 1. What markets do we serve with what products? 2. What type of relationship do we form and with whom? 3. What level of investment will be required, and how will we locate and allocate the needed resources? 4. What are the detailed objectives and action plan? MARKETING STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 8
- 9. Strategy Hierarchy 1. Whatmarkets do we serve with what products? MARKETING STRATEGY CURRENT MARKET NEW MARKET Market Penetration HP creates “full line contracts” to encourage customers to buy all HP products MARKETS PRODUCTS CURRENT NEW Product Development Dell adds consumer electronics such as cameras Diversification Carlson Marketing expands from selling promotional trips to promotional products, such as cups and caps Market Development Intel sells computer chips for use in John Deere tractors Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 9
- 10. Strategy Hierarchy 2. Whattype of relationship do we form and with whom? • Companies do not operate in a vacuum- they have suppliers, customers and competitors who operate in a network: touch one and like, ripples in a pond, others are affected. • Customer Life Time Value concept (Sum of all of the purchases made over a customer’s lifetime, is worth a significant amount) • Customer Relationship Management MARKETING STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 10
- 11. Strategy Hierarchy 3. Whatlevel of investment will be required, and how will we locate and allocate the needed resources? • This includes money but also human & social capital. • Human capital refers to the people that make up an organization. • Social capital, or the ties that the firm has with others, can also be drawn upon as a resource. At its simplest, social capital is who owes you a favor or who can be asked a favor. MARKETING STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 11
- 12. Strategy Hierarchy 3. Whatlevel of investment will be required, and how will we locate and allocate the needed resources? An historic example dating from early eighties concerns Chrysler. At one point, the firm was within days of declaring bankruptcy when David, the CEO of Xerox Corporation, called Lee Iacocca, the CEO of Chrysler. Kearns asked Iacocca how many cars needed to be sold for the company to stay afloat. Chrysler, after all, was a good Xerox customer. Iacocca told him, and David responded by placing an order for that many. The social capital between the two firms saved Chrysler and put both of them to solid footing. MARKETING STRATEGY SOCIAL CAPITAL Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 12
- 13. Strategy Hierarchy 4. Whatare the detailed objectives and action plan? One set of criteria for establishing objectives is the SMART format. For example, an objective to simply ‘increase market share’ is not specific enough. As a manager, you need to ask yourself, by how much do we need to increase market share? If the objective is to increase customer loyalty, you need a way to measure customer loyalty, perhaps by recording the number of repeat customers make. If the objective is to double market share, you need to ask yourself whether such an ambitious goal is achievable or even realistic. Finally, the objective need to be time-based. When will it be met? In the next month, year, or decade? MARKETING STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 13
- 14. Strategy Hierarchy An abbreviatedexample of how a firm’s strategy might be different at different levels of the organization. CORPORATE STRATEGY “To be a leader in womometer technology” MARKETING STRATEGY “To sell womometer to space engineers and to hydraulic engineers at a premium price” Direct Marketing STRATEGY ? Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 14
- 15. Strategy Hierarchy • Objectivesof Direct Marketing (DM) • Reasons for the Growth of Direct Marketing • DM Vs Direct Selling • DM Vs Database Marketing • Media Decisions • Direct Marketing Process • Managing DM Campaign Direct Marketing STRATEGY Direct Marketing Strategy Hierarchy ACCMAN 07/04/15 15
Editor's Notes
- #2 What u think..suggest purpose or objective
- #4 General level of strategy in org are corporate, divisional, business, functional which is marketing, R&D, Promotion etc.. Under functional..we have marketing ..and nder marketing we have sales strategy We can say.. The flow of the strategy from the organization level to the unit level is called the strategy hierarchy.
- #5 Accman vision.. To become a top-tier business school with globally recognized strengths in Finance, Marketing, Retail and HRM other misiion.. To bridge the gap between theory and practice in the knowledge economy
- #6 Org level means corporate level to unit level means functional level Means top management are responsible for creating the vision and mission statements ..accessing the growth opportunity..refine their businesses frim product centric to cutomer centric like … Columbia Picture: We made movies We market entertainment Britannica: We sell encyclopedia We distribute information
- #7 Marketing strategy of dell to target corporate customer..but selling strategy is to sell to IBM, Infosys or TCS
- #8 Means top management are responsible for creating the vision and mission statements ..accessing the growth opportunity..refine their businesses frim product centric to cutomer centric like … Columbia Picture: We made movies We market entertainment Britannica: We sell encyclopedia We distribute information
- #9 Same will be applicable of DM as well
- #10 Ansoff matrix or ansoff product-market grid
- #11 We have not discussed holistic marketing concept yet,.. CRM strategies include customera acquisition, customer growth and customer retention strategy
- #13 Daimlet from Us ..chrysler from germany
- #14 Specific, measurable, achievable yet challenging, realistic , time based
- #15 Marketing strategy of dell to target corporate customer..but selling strategy is to sell to IBM, Infosys or TCS
- #16 Stages in Selling Process Pre-sale Preparation Prospecting Pre-Approach before Selling Approach to the Customer Sales Presentation Handling Customer Objections Closing the Sale Follow-up Action