Marketing basics

1. 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 22-7

2. 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 22-9

3. FFIIGGUURREE 2222--11 Sales response function
showing the situation for two different years
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-10

4. 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 22-12

5. FFIIGGUURREE 2222--22 The strategic marketing
process: actions and information
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-13

6. FFIIGGUURREE AA The strategic marketing phases
and corresponding output reports
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-14

7. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• The Variety of Marketing Plans
 Long-Range Marketing Plans
 Annual Marketing Plans
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-15

8. FFIIGGUURREE 2222--33 Steps a large consumer
packaged goods firm takes in developing its
annual marketing plan
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-16

9. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Marketing Planning Frameworks:
The Search for Growth
 Porter’s Generic Business Strategies
• Generic Business Strategy
• Cost Leadership Strategy
• Differentiation Strategy
• Cost Focus Strategy
• Differentiation Focus Strategy
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-21

10. FFIIGGUURREE 2222--44 Porter’s four generic business
strategies
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-22

11. Wal-Mart and Volkswagen
Which of Porter’s generic business strategies
do these firms use?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-23

12. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Marketing Planning Frameworks:
The Search for Growth
 Profit Enhancement Option: Increase
Revenues
• Market Penetration
• Product Development
• Market Development
• Diversification
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-24

13. FFIIGGUURREE 2222--55 Profit enhancement options
for increasing a firm’s profits
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-25

14. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Marketing Planning Frameworks:
The Search for Growth
 Profit Enhancement Option: Decrease Costs
• 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 22-26

15. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Marketing Planning Frameworks:
The Search for Growth
 Market-Product Synergies
• Marketing Synergies (Rows)
• R&D–Manufacturing Synergies (Columns)
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-27

16. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Marketing Planning Frameworks:
The Search for Growth
 Market-Product Synergies
• Market-Product Concentration
• Market Specialization
• Product Specialization
• Selective Specialization
• Full Coverage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-28

17. MARKETING NEWSNET
The Strategy Issue for the
New Millennium—Finding Synergies
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-29

18. FFIIGGUURREE 2222--66 Market-product grid of
alternative strategies for a lawnmower
manufacturer
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-30

19. FFIIGGUURREE 2222--77 An ideal merger for Great
States to obtain full market-product
coverage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-31

20. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Some Planning and Strategy Lessons
 Big G plus Pillsbury: Synergies, Segments,
and Partners
• One-Handedness Convenience
• Joint Ventures
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-37

21. MARKETING NEWSNET
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-38
Keeping Planning Simple at Big G:
“One-Handed” Convenience
Plus Cover All the Bases

22. THE PLANNING PHASE OF THE
STRATEGIC MARKETING PROCESS
• Some Planning and Strategy Lessons
 Balancing Value and Values in Strategic
Marketing Plans
• Value-Based Planning
• Value-Driven Strategies
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-41

23. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Is Planning or Implementation the
Problem?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-42

24. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Increasing Emphasis on Marketing
Implementation
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-44

25. MARKETING NEWSNET
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-45
GE’s Implementation Strategies—How
Neutron Jack Became One of the Most
Acclaimed CEOs of the 20th Century

26. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Improving Implementation of Marketing
Programs
 Communicate Goals and the Means of
Achieving Them
 Have a Responsible Program Champion
Willing to Act
• Product or Program Champion
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-46

27. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Improving Implementation of Marketing
Programs
 Reward Successful Program Implementation
 Take Action and Avoid Paralysis by Analysis
 Foster Open Communication to Surface
Problems
• Avoid the “NIH Syndrome”
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-47

28. 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 22-50

29. FFIIGGUURREE 2222--EE Tasks to complete a term
project
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-51

30. FFIIGGUURREE 2222--88 Gantt chart for scheduling the
term project
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-52

31. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Organizing for Marketing
 Line versus Staff and Divisional Groupings
• Line Positions
• Staff Positions
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-56

32. FFIIGGUURREE 2222--99 Organization of a business
unit in a typical consumer packaged goods
firm, showing two product or brand groups
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 22-57

33. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Organizing for Marketing
 Line versus Staff and Divisional Groupings
• Product Line Groupings
• Functional Groupings
• Geographical Groupings
• Market-Based Groupings
 Matrix Organization
 Category Manager
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-58

34. THE IMPLEMENTATION PHASE
OF THE
STRATEGIC MARKETING PROCESS
• Organizing for Marketing
 Role of the Product Manager
• Product Manager
• Brand Manager
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-59

35. FFIIGGUURREE 2222--1100 Units with which the product
manager and product group work
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-60

36. THE CONTROL PHASE OF THE
STRATEGIC MARKETING PROCESS
• The Marketing Control Process
 Management by Exception
 Measuring Results
 Taking Marketing Actions
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-61

37. FFIIGGUURREE 2222--1111 The control phase of the
strategic marketing process
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-62

38. THE CONTROL PHASE OF THE
STRATEGIC MARKETING PROCESS
• Sales Analysis
 Sales Analysis
 Sales Component (Microsales) Analysis
• Profitability Analysis and ROI
Marketing
 Profitability Analysis
 ROI Marketing
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-64

39. Contact us
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal
Code-110015
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© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin