MARKETING BASICS: DOING WHAT WORKS AND ALLOCATING RESOURCES

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MARKETING BASICSDOING WHAT WORKS AND ALLOCATING
RESOURCES

• Finding and Using What Really Works

• Strategy Focused

• Execution Flawless Operations

• Culture Performance-Oriented

• Structure Fast, Flexible, and Flat

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MARKETING BASICSDOING 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

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FIGURE 22-1 Sales response function showing the
situation for two different years
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MARKETING BASICSDOING 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

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FIGURE 22-2 The strategic marketing process
actions and information
Slide 22-13
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FIGURE A The strategic marketing phases and
corresponding output reports
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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• The Variety of Marketing Plans

• Long-Range Marketing Plans

• Annual Marketing Plans

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FIGURE 22-3 Steps a large consumer packaged
goods firm takes in developing its annual
marketing plan
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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• Marketing Planning FrameworksThe Search for
  Growth

• Porters Generic Business Strategies

• Generic Business Strategy

• Cost Leadership Strategy

• Differentiation Strategy

• Cost Focus Strategy

• Differentiation Focus Strategy

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FIGURE 22-4 Porters four generic business
strategies
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Wal-Mart and Volkswagen Which of Porters
generic business strategiesdo these firms use?
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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• Marketing Planning FrameworksThe Search for
  Growth

• Profit Enhancement Option Increase Revenues

• Market Penetration

• Product Development

• Market Development

• Diversification

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FIGURE 22-5 Profit enhancement options for
increasing a firms profits
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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• Marketing Planning FrameworksThe 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

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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• Marketing Planning FrameworksThe Search for
  Growth

• Market-Product Synergies

• Marketing Synergies (Rows)

• RDManufacturing Synergies (Columns)

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THE PLANNING PHASE OF THE STRATEGIC MARKETING
PROCESS

• Marketing Planning FrameworksThe Search for
  Growth

• Market-Product Synergies

• Market-Product Concentration

• Market Specialization

• Product Specialization

• Selective Specialization

• Full Coverage

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MARKETING NEWSNET
The Strategy Issue for theNew MillenniumFinding
Synergies
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FIGURE 22-6 Market-product grid of alternative
strategies for a lawnmower manufacturer
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FIGURE 22-7 An ideal merger for Great States to
obtain full market-product coverage
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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

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MARKETING NEWSNET
Keeping Planning Simple at Big G One-Handed
ConveniencePlus Cover All the Bases
Slide 22-38
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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

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THE IMPLEMENTATION PHASEOF THESTRATEGIC
MARKETING PROCESS

• Is Planning or Implementation the Problem?

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THE IMPLEMENTATION PHASEOF THESTRATEGIC
MARKETING PROCESS

• Increasing Emphasis on Marketing Implementation

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MARKETING NEWSNET
GEs Implementation StrategiesHow Neutron Jack
Became One of the Most Acclaimed CEOs of the 20th
Century
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THE IMPLEMENTATION PHASEOF THESTRATEGIC
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

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THE IMPLEMENTATION PHASEOF THESTRATEGIC
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

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THE IMPLEMENTATION PHASEOF THESTRATEGIC
MARKETING PROCESS

• Improving Implementation of Marketing Programs

• Schedule Precise Tasks, Responsibilities,
  and Deadlines

• Action Item List

• Program Schedules

• Gantt Chart

• Sequentially

• Concurrently

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FIGURE 22-E Tasks to complete a term project
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FIGURE 22-8 Gantt chart for scheduling the term
project
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THE IMPLEMENTATION PHASEOF THESTRATEGIC
MARKETING PROCESS

• Organizing for Marketing

• Line versus Staff and Divisional Groupings

• Line Positions

• Staff Positions

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FIGURE 22-9 Organization of a business unit in a
typical consumer packaged goods firm, showing two
product or brand groups
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THE IMPLEMENTATION PHASEOF THESTRATEGIC
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

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THE IMPLEMENTATION PHASEOF THESTRATEGIC
MARKETING PROCESS

• Organizing for Marketing

• Role of the Product Manager

• Product Manager

• Brand Manager

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FIGURE 22-10 Units with which the product
manager and product group work
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THE CONTROL PHASE OF THE STRATEGIC MARKETING
PROCESS

• The Marketing Control Process

• Management by Exception

• Measuring Results

• Taking Marketing Actions

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FIGURE 22-11 The control phase of the strategic
marketing process
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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

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