Marketing: The Core 6th Edition Chapter 2

Organization
legal entity made up of people who share a common mission
Offerings
goods/services/ideas create value for internal and external parties by satisfying wants and needs
What are the types of organizations?
For profit, Non-profit, Government agencies
For Profit organization
Privately owned, serves customers to earn profit and survive
Non-profit
Non governmental, profit is not the goal, serves needs of society
Government Agencies
Federal, State, County, or city unit service
Profit
Total Revenues – Total expenses (the reward for the risk) The money left after a for profit entity subtracts expenses from revenues
Industry
Organizations that develop similar offerings (ex. Automobile)
Strategy
Long term course of action in order to create a unique customer experience while achieving its goals
What are the 3 organizational levels?
Corporate, Strategic Business Unit Level, Functional Level
Organization Level 1) Corporate Organizational
Top Management, overall strategy for entire organization, (Board of directors, senior management officers, president/CEO)
CMO
Chief Marketing Officer staying in touch with customers needs/wants
Organization Level 2) Strategic Business Unit Level
A subdivision of an organization, markets a set of related offerings to a clearly defined target market
Organizational Level 3) Functional Level
Group of specialists create value for an organization (split into department, marketing, finance etc.) Groups create value for the organization
Cross Functional Teams
small number of people from different departments who are mutually accountable to accomplish tasks (Groups with a common purpose/task)
Organizational Foundation
Why an organization exists, their values, mission and culture
OG Foundation: Core Values
fundamental, passionate principles that guide the conduct of the firm. Essential beliefs and character meant to inspire others (communicated, demonstrated and supported by everyone)
OG Foundation: Mission
Statement/Vision of an organization (It’s desired function in society.) IDENTIFIES customers, markets, products and technologies
OG Foundation: Organizational Culture
Values, ideas, attitudes…behavioral norms that are learned and shared amongst members
Organizational Direction: Business
Underlying industry/Market sector of an organizations offering (What business are we in? What do we do?) (Ex. Railroad business vs. Transportation business)
Business Model
Strategies developed to provide customers with value
OG Direction: Goals/Objectives
turn long term performance targets into short term plans that can be pursued in multiple ways (ex. profit, employee welfare, customer satisfaction)
Market Share
Ratio of FIRMS SALES : TOTAL SALES OF ALL FIRMS IN THAT INDUSTRY
Marketing Plan
Road map for marketing actions for a specific time
Marketing Dashboard
Visual computer display of essential info related to achieving marketing goals (Think of a fuel gage on a car dashboard)
Marketing Metric
Measure of the value of a marketing activity or Result (Data visualization, information is presented graphically see the deviations and take action)
Competencies
Special capabilities, skills/technologies/resources that are distinguished from other companies (What are you marketing? convenience? quality? service?)
Business Portfolio Analysis
Strategy to quantify measures (put them into numbers) and growth targets in order to analyze their firm’s strategic business units
Diversification Analysis
technique used to search for growth opportunities from among current and new products and markets (new products, new markets, old products old markets)
DA: Market Penetration
Sell more product through better promotion or distribution or selling same amount at higher price (Increase sales for current products and current markets)
DA: Market Development
Current Products NEW markets
DA: Product Development
NEW Product current market
DA: Diversification
NEW products in NEW markets
Strategic Marketing Process
Where are we? where do we want to go? Allocating resources to plans, actions and results. (Planning, implementing, evaluating)
SMP: Situation Analysis
Where the firm was, where it is now, where is it going
SMP: SWOT
Strengths weaknesses opportunities threats
SMP: Market Segmentation
Dividing prospective buyers into groups/segments that have common needs and will respond similarly to a marketing action
SMP: Points of difference
characteristics of a product that make it superior to its competitor substitutes
Positioning a product
Putting the product into the consumers mind, What is it associated with? What do they think? How is it branded?
SMP: Marketing Program Planning/Implementation
Obtaining resources, designing the marketing organization, responsibilities and deadlines (Product, Price, Promotion, Place)
Marketing strategy
means by which a marketing goal is achieved characterized by a specific target market and marketing program
Marketing tactics
detailed day-to-day operational marketing actions. (Decisions essential to the success of marketing strategies)
Evaluation of Strategic Marketing Program
compare results to goals, exploit positive deviations, correct negative deviations
3 levels of strategy in organizations
corporate, business unit. and functional
Corporate Level (Members)
CEO (Chief Executive Officer) CMO (Chief Marketing Officer)
Strategic Business Unit
(SBU, for related offerings)
Departments
Groups with a specific function (ex. marketing)
Visionary Organization
FDS (establish a foundation, find a direction, develop strategies to successfully develop and market
OG Direction: what should goals be?
SMART (Specific, Measurable, Attainable, Relevant, Time-based)
Stars
?
cash cows
dogs
Strategic Marketing Process: Planning
Situation (SWOT) Analysis, Market-Product focus and goal setting, Marketing Program
SWOT: SituationAnalysis
Industry trends, analyze competitors, Assess the Organization, present and prospective customers
SWOT: Strengths
favorable and internal
SWOT: Weaknesses
Unfavorable and internal
SWOT: Opportunities
Favorable and external
SWOT: Threats
Unfavorable and external
SWOT Analysis Actions
Build on strength, correct weakness, exploit opportunity, avoid threats
SMP: Implementation
Obtaining resources, Designing the market organization, define precise tasks, responsibilities and deadlines, executing the marketing program (Create an action item list)
Action item list
things that need to get done, by who, and by what time
Business
clear, broad, underlying industry or market sector of an organizations industry