The document discusses strategic marketing processes including planning, implementation, and evaluation phases. It covers topics such as situation analysis, SWOT analysis, market segmentation, and developing marketing programs. Key aspects of visionary organizations are also examined like organizational foundation, direction, and strategies.

1. Product (goods, services)
Analysis of
competitive position
growth rate
Business Portfolio Analysis (BCG)
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
Business Portfolio Analysis (BCG)
Market Growth Rate
Stars
Cash Cows
Dogs
Question Marks
Relative Market Share
High
High
Low
Low
2-2

2. 2
FIGURE 2-5 Four alternative market-product strategies for Ben
& Jerry’s to expand sales revenues using diversification
analysis
2-3
Diversification Analysis – growth opp.
3
Growth Opportunities (very important)
Current products, current customers
products
4
Market penetration
Gaining market share
With current products
In current markets
How?
By encouraging “their” customers to buy more
Attracting competitor’s customers (= same market segment)
Convince non-users (= same market segment)
Growth Opportunities (very important)

3. Also called market development strategy
Current products, new markets
(customers of diff. segment)
products
6
How?
New geographical markets (KFC in China etc)
Mooyah in Dubai
How?
New pricing policy:
Children’s clothes
Growth Opportunities (very important)
products
New products, current markets
product development strategy

4. 9
examples
Google chrome: new browser for its existing internet users
McDonald’s: new burgers
Current examples
(please click on jpegs & skim through articles)
Growth Opportunities (very important)
products
New products, new markets
RISKY!!!!
12
examples
Virgin media: from Virgin music => to travel & mobile phones
Walt Disney: from movies => to theme parks
Canon: from cameras => to office equipment

5. related diversification opportunity
the present target market and/or retail format shares something
in common with the new opportunity
E.g. from cars => to motorcycles & trucks (resource
transfer; technologically related)
unrelated diversification
lacks any commonalty between the present business and the new
business
no direct fit with the existing business
Advantages?
Disadvantages?
The strategic marketing process has three phases: planning,
implementation, and evaluation
2-16
16
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Weaknesses
Strengths
Threats
Opportunities
LO5

6. Situation Analysis
SWOT Analysis
Step 1: Situation (SWOT) Analysis
2-17
“Been there, done that!”
See assignment #1
17
Market Segmentation
Points of Difference
Step 2: Market-Product Focus and Goal Setting
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
LO5
2-18
18
FIGURE 2-8
Step 3: produce a cohesive marketing program
2-19
19
THE STRATEGIC MARKETING PROCESS

7. THE IMPLEMENTATION PHASE
LO6
Obtaining Resources
Designing the
Marketing Organization
Developing Planning Schedules
Executing the Marketing Program
Marketing Strategy
Marketing Tactics
2-20
20
THE STRATEGIC MARKETING PROCESS
THE EVALUATION PHASE
Acting on Deviations
Planning Gap
Comparing Results with
Plans to Identify Deviations
2-21
“…uh oh.”
21
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rights reserved.

8. 1
Failed strategy – why?
Failed strategy – why?
Not offering XL, XXL & sizes over 10 for women; negative
publicity!!
Questionable hiring practices!
Advertisements and models have offended parents for too long
Persistently relied on logo business hoping that its iconic brand
image would eventually bring customers back
When a brand gets uncool….
Organization
KINDS OF ORGANIZATIONS
Similar offerings
Business Firm
Nonprofit
Organization
Industry

9. 2-5
legal entity of people sharing a common mission developing
offerings (products, services, ideas)
profit – oriented (?)
“Been there, done that!”
See chapter 1 &12!
5
Are religions an “industry”?
Definition: “industry”
group of organizations with similar
Business (for-profit/ non-profit) activities (4Ps),
especially similar
market offerings (goods, services)
FIGURE 2-A How an industry is structured
2-8

10. 8
What do you offer? – Everything!
What is Strategy?
Strategy
No uniform definition
Means – plans, policies, actions - by which it seeks to achieve
its long-term goal(s)
Can’t Be “All Things to All People”
2-9
Strategy
No uniform definition
Means – plans, policies, actions - by which it seeks to achieve
its long-term goal(s)
9
FIGURE 2-1 The board of directors oversees the three levels of
strategy in organizations:
2-10
CEO, CMO
SBU: Org. unit with set of related offerings for defined group of
customers
Ben & Jerry’s
= 1 SBU; both levels merge

11. = Strategic Business unit
A department of an organization
Responsible for the 4 Ps in a distinct org. area
Possibly held accountable by superordinate units
10
TODAY’S ORGANIZATIONS
STRUCTURE—SBU
LO1
Strategic Business Unit (SBU)
2-11
SBU has functional levels = dept.
Cross-Functional Teams
11
FIGURE 2-2 Visionary organizations:
(1) establish a foundation, (2) set a direction, and (3) create
strategies to successfully develop and market their offerings
2-12
Timeless, stable, guiding principles
Connects stakeholders; communicationg core values & mission
to stakeholders
12

12. STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL FOUNDATION (WHY)
Core Values
Stakeholders
Organizational Culture
Mission or Vision
LO2
Mission Statement
2-13
“Been there, done that!”
See chapter 1 &12!
13
Why is a mission statement important?
2-14
14
Business
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
LO2
Business Model
2-15

13. describes the rationale of how an organization creates, delivers,
and captures value - economic, social, or other forms of value.
15
Profit
Sales ($ or #)
Market Share
Customer Satisfaction
Employee Welfare
Social Responsibility
Quality
Efficiency
Possible Goals or Objectives
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
LO2
2-16
“Been there, done that!”
See chapter 1 &12!
16
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
LO2
Goals or Objectives: S.M.A.R.T.
Specific
Measurable
Relevant
Attainable
Time-Based

14. 2-17
17
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (HOW)
LO2
Variation by Level
Variation by Offering
Corporate
SBU
Functional
Product
Service
Idea
2-18
“Been there, done that!
See chapter 1 &12!
18
Car Dashboards and Marketing Dashboards
Dashboards, Metrics, and Plans
STRATEGY IN VISIONARY ORGANIZATIONS
MARKETING DASHBOARDS AND METRICS
LO3
Marketing Metric – measure of MKTG activity
Marketing Plan- quantitative objectives

15. 2-19
Not on exam – do not cross!
Not on exam – do not cross!
19
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All
rights reserved.
1
How would YOU define marketing?
Does MKTG apply to relig. denominations? Why/why not?

16. Cologne Cathedral
(Roman Catholic)
Baptist Church
(New England States)
New Synagogue, Berlin
(Jewish)
Great Mosque of Mecca, Saudi Arabia (Muslim)
Hagia Sophia, Istanbul [Constantinople),
Turkey [Byzantine Empire],
Christian: 537 – 1453 (fall of the empire/ conquered)
Muslim: 1453 – 1931
Museum: 1935 - present
AMA marketing definitions
1935:
MKTG is the performance of business activities that direct the
flow of goods and services from producers to consumers
Emphasis?
Goods and services
From producers => to consumers
1935:
MKTG is the performance of business activities that direct the
flow of goods and services from producers to consumers
Emphasis?

17. 1935:
MKTG is the performance of business activities that direct the
flow of goods and services from producers to consumers
Emphasis?
1935:
MKTG is the performance of business activities that direct the
flow of goods and services from producers to consumers
Emphasis?
Food for thought: what is a business?
Let’s have a look at (click)
AMA marketing definitions
1985
MKTG is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services
to create exchanges that satisfy individual and organizational
objectives
Emphasis?
Process (dynamic aspect)
The 4 Ps
Ideas, goods, services
Satisfy indiv. and org. objectives
AMA marketing definitions

18. 2004
Marketing is an organizational function and a set of processes
for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders.
Emphasis here?
Organizational function (MKTG department)
Delivering value
Customer relationships
(not just the organization but also) stakeholders
2004
Marketing is an organizational function and a set of processes
for creating, communicating, and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders.
Emphasis here?
AMA marketing definitions
2007
Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large.
Emphasis?
MKTG is an activity (not just the realm of the MKTG
department but the whole org.!)
Partners (not just a relationship but real partners)
Society at large (corporate citizenship; “we use solar energy to
produce our goods”; Walmart donates to local community etc.)

19. AMA marketing definitions
“The American Marketing Association revisits the definition for
marketing every five years in a disciplined effort to reflect on
the state of the marketing field.”
AMA dictionary – very helpful!:
http://www.marketingpower.com/_layouts/dictionary.aspx?dLett
er=M
Marketing Seeks to:
Exchange
Discover Needs and Wants of Customers
Satisfy Them
WHAT IS MARKETING?
DELIVERING BENEFITS
LO1
AMA Definition of Marketing
1-10
10
WHAT IS MARKETING?
DIVERSE FACTORS INFLUENCE MARKETING ACTIVITIES
LO1
The Organization Itself and Its Departments
Society
Environmental Forces
1-11

20. http://www.youtube.com/watch?v=fViObqGvIjM
11
FIGURE 1-2 A marketing department relates to many people,
organizations, and environmental forces
1-12
12
Consumers May Not Know or Cannot Describe What They Need
or Want
consumer needs? => MKTG research
Most New Products Fail
“Focus on Consumer
Benefit = who cares?”
“Learn From the Past”
The Challenge:
Pepsi Max

21. LO2
1-15
"Zero calories, maximum taste" -- drops the word diet from its
messaging altogether
What needs does it address?
15
Famous product failures
Need
Want
Does Marketing Persuade
People to Buy the
“Wrong” Things?
Market
HOW MARKETING
DISCOVERS CONSUMER NEEDS
NEEDS VS. WANTS
LO2
1-17
17
Click on pic

22. Needs and wants
Need
– “I am hungry”; basic necessity; Maslow’s pyramid; necessary
for survival
Want
– sth I would like to have; shaped by personality, knowledge,
culture
can MKTG influence needs? Wants? Both?
MKTG can discover needs & influence wants
FIGURE 1-3 Marketing seeks to discover consumer needs
through research and then satisfy them with a marketing
program – what’s the problem with this chart?
1-20
20
How not to run your office….
HOW MARKETING
SATISFIES CONSUMER NEEDS
LO3

23. Promotion
Place
Market – general; people
Target market – specific
The 4 P’s: Controllable Marketing Mix Factors
Product
Price
$199
1-22
22
The old & the new 4 P’s
(Lusch & Vargo 2006)
Key word: co-creating!
(Extra)
Airport: ticket check-in
customization
The power of supply chain management; integration
Facebook etc.
HOW MARKETING
SATISFIES CONSUMER NEEDS
LO3
Technological

24. Regulatory
Uncontrollable Environmental Forces
Social
Economic
Competitive
1-24
Can environmental forces be influenced?
Yes – by innovations
24
THE MARKETING PROGRAM
CUSTOMER VALUE AND RELATIONSHIPS
LO4
Best Price - Walmart
Best Service - Verizon
Customer Value – where have we seen the term value before?
Best Product - Starbucks
Value Strategies – offering a unique combination of benefits
1-25
Exchange – trade of things of value
25
FIGURE 1-5 Four different orientations in the history of
American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
Market Orientation

25. 1-26
26
FIGURE 1-5 Four different orientations in the history of
American business
Production Era
Sales Era
Marketing Concept Era
Customer Relationship Era
Market Orientation
“need scanning”
– to create value
1-27
Satisfy needs – org. goals
“Produce it –they will buy it”
Competition grows; “pushing” products on consumers
Intimate understanding of consumers
27
(Extra)
HOW MARKETING BECAME IMPORTANT
EVOLUTION OF THE MARKET ORIENTATION
LO5

26. Customer RelationshipManagement (CRM)
Key development: from transactional => relational MKTG
Customer Experience
What Firms Think They Offer Customers
What Customers Say They Receive
1-29
29
HOW MARKETING BECAME IMPORTANT
ETHICS AND SOCIAL RESPONSIBILITY
LO5
Ethics – see lecture on chapter 4
Social Responsibility see chapter 4
Societal Marketing Concept
Social Entrepreneurship
1-30
30
HOW MARKETING BECAME IMPORTANT
BREADTH AND DEPTH OF MARKETING
LO5
Who Buys & Uses What Is Marketed?
Ultimate Consumers => B2C
Organizational Buyers => B2B
How Do Consumers Benefit?: Utility
Form Utility - production
Place Utility – avail. Where needed
Time Utility – avail. When needed
Possession Utility – easy to purchase & use; delivery
1-31

27. 31
Remember this?
back
Food for thought
- how do these groups fit into Maslow’s pyramid?
American Baptist Foreign Mission Society
Missionaries of Charity
(Catholic order of nuns)

28. Target market
- the consumers we pursue
http://www.therealtimscott.com/identify-target-market/
back
Relationship MKTG
back
Source: Hennig-Thurau & Hansen 2000, p. 320
From transactional to relationship MKTG
Source: Hennig-Thurau & Hansen 2000, p. 320
Team-Exercise #1; turn in ONE copy per team; team size: 4
students max
Your names: _____________________
_____________________

29. _____________________
_____________________
1. Warm-up exercise (critical thinking) (20 points)
In class we watched the following spot (created by a recent film
school graduate who was NOT hired by Mercedes Benz to create
this):
http://vimeo.com/72718945#
Mercedes-Benz contacts you, a marketing expert:
· Should they use this video for advertising purposes? Or should
they rather publically distance themselves from the video – why
/ why not (there currently is a heated debate on this in
Germany)

30. 2. (Chapter 1) Does a firm have the right to “create” wants and
try to persuade consumers to buy goods and services they didn’t
know about earlier? (10 points)

31. 3. The following questions deal with the Boston Consulting
growth matrix
a) What is the function of the BCG? What is this tool used for?
(5 points)

32. b) Describe briefly the 4 quadrants using product examples you
can think of! (8 points)

33. c) What are disadvantages or limitations of the BCG matrix? (15
points)

34. 4. Select one strength, one weakness, one opportunity, and one
threat from the SWOT analysis for Ben & Jerry’s shown in
Figure 2-7. Suggest an action that a marketing manager might
take to address each factor. (Chapter 2) (20 points)
Strength (pick one)
What should be done?
Weakness (pick one)

35. What should be done?
Opportunity (pick one)
What should be done?
Threat (pick one)
What should be done?
5