Lecture Marketing (11/e): Chapter 2 – Kerin, Hartley, Rudelius
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2-1
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:
LO1
Describe two kinds of organizations
and the three levels of strategy in
them.
LO2
Describe how core values, mission,
organizational culture, business, and
goals are important to organizations.
LO3
Explain why managers use marketing
dashboards and marketing metrics.
2-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 2, YOU SHOULD BE ABLE TO:
LO4
Discuss how an organization assesses
where it is now and where it seeks to
be.
LO5
Explain the three steps of the planning
phase of the strategic marketing
process.
LO6
Describe the elements of the
implementation and evaluation phases
of the strategic marketing process.
2-3
BE AN ENTREPRENEUR: GET AN “A” IN A
CORRESPONDENCE COURSE IN ICE CREAM MAKING!
2-4
LO1
TODAY’S ORGANIZATIONS
KINDS OF ORGANIZATIONS
Organization
Offerings
Business Firm
Nonprofit
Organization
• Profit
Industry
2-5
FIGURE 2-A How an industry is structured
2-6
LO1
MAKING RESPONSIBLE DECISIONS
Using Social Entrepreneurship to Help People
Social Entrepreneurship
• Teach for
America
• SightLife
• Hand in
Hand Int’l
2-7
LO1
TODAY’S ORGANIZATIONS
What is Strategy?
Can’t Be “All Things to All People”
• Limited Resources to Market Offerings
Strategy
2-8
FIGURE 2-1 The board of directors oversees
the three levels of strategy in organizations:
corporate, business unit, and functional
2-9
LO1
TODAY’S ORGANIZATIONS
STRUCTURE—CORPORATE & SBU
Corporate Level
Chief Marketing Officer (CMO)
Strategic Business Unit (SBU) Level
• PCs/Laptops
• iPads
• iPods
• “iTVs?”
• iPhones
2-10
LO1
TODAY’S ORGANIZATIONS
STRUCTURE—FUNCTIONAL
Functional Level
Department
Cross-Functional Teams
2-11
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
LO2
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL FOUNDATION (WHY)
Core Values
• Stakeholders
Mission or Vision
• Mission Statement
Organizational
Culture
Medtronic
2-13
LO2
Star Trek Enterprise
Why is a mission statement important?
2-14
LO2
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
Business
• What do we do?
• What business
are we really in?
Business Model
2-15
LO2
MARKETING MATTERS
The Netflix Launch and
Its Continually Changing Business Model!
2-16
LO2
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
Goals or Objectives
• Profit
• Customer Satisfaction
• Sales ($ or #)
• Employee Welfare
• Market Share
• Social Responsibility
• Quality
• Efficiency
2-17
LO2
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (WHAT)
Goals or Objectives: S.M.A.R.T.
• Specific
• Measurable
• Attainable
• Relevant
• Time-Based
2-18
LO2
STRATEGY IN VISIONARY ORGANIZATIONS
ORGANIZATIONAL DIRECTION (HOW)
Variation by Level
• Corporate
• SBU
• Functional
Variation by Offering
• Product
• Service
• Idea
2-19
LO3
STRATEGY IN VISIONARY ORGANIZATIONS
DASHBOARDS, METRICS, AND PLANS
Marketing Dashboard
Marketing Metric
Marketing
Plan
Business
Plan
2-20
FIGURE 2-3 An effective marketing
dashboard like Sonatica’s helps managers
assess a business situation at a glance
Source: Dundas Data Visualization
2-21
FIGURE 2-3A Marketing Dashboard: Website
Traffic Sources
2-22
FIGURE 2-3B Marketing Dashboard: Sales
Performance by SBU
2-23
FIGURE 2-3C Marketing Dashboard: Monthly
Website Visits by State
2-24
LO3
USING MARKETING DASHBOARDS
How Well is Ben & Jerry’s Doing?
Dollar Sales and Dollar Market Share
Dollar Market Share (%) =
Ben & Jerry's Sales ($)
Total Industry Sales ($)
2-25
