organization
a legal entity that consists of people who share a common mission; this motivates them to develop offerings
offerings
create value for both the organization and its customer
business firm
privately owned organization that serves its customers to earn a profit so that it can survive (google or nike)
nonprofit organization
nongovernmental organization that serves its customers but does not have profit as an organizational goal
industry
organizations that develop similar offerings create an industry
How an industry is structured
Industry-->offerings<--business firms (goals:sales, market share, profts)<--nonprofit organizations (goals: clients, satisfaction, efficiency)-->sustainable development
strategic business unit (SBU) level
a subsidiary(less important), division or unit that markets a set of related offerings to a clearly defined group of customers
exp: GE technology infrastructure(healthcare & transportation)
functional level
groups of specialists create value for the organization
department
refers to specialized teams such as marketing, HR, or finance
Cross-Functional Teams
small number of people from different departments who are mutually accountable to accomplish a task for a common set of performance goals
Visionary Organizations
1) Establish a foundation
2) set a direction
3) create strategies to successfully develop and market their offerings
Organizational foundation(why)
-core values
-mission (vision)
-organizational culture
Organizational direction(what)
-business
-goals (objectives)
-long-term
-short-term
Organizational Strategies(how)
-by level
-corporate
-SBU
-functional
-by offering
-product
-service
-idea
stakeholders
employees, shareholders, board of directors, suppliers, distributors, creditors, unions, governments, local communities, and customers
Mission statement
a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the comp
Example Mission Statement: Star Trek Enterprise
to explore strange new worlds, to seek out new life and new civilizations, to boldly go where no one has gone before
Organizational Direction: S.M.A.R.T.
Specific
Measurable
Attainable
Relevant
Time-Based
Competencies
special capabilities of the company that distinguish it from other organization and create customer value
competitive advantage
a unique strength relative to competitors that provides superior returns, based on quality, time, cost and innovation
Three phases of strategic marketing process
1)planning
2)implementation
3)evaluation
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Swot analysis Study
identify industry trends; analyze competitors; assess the organization; research present and prospective customers
Swot analysis Actions
build on a strength; correct a weakness; exploit an opportunity; avoid a disaster-laden threat
Medtronic's Pacemaker (the planning phase)
1. Set marketing and product goals
2. select target markets
3. find points of difference
4. position the product
THE FOUR P'S!!!
1. Product
2. Price
3. Promotion
4. Place
Product
features, brand name, packaging, service, waranty
price
list price, discounts, allowances, credit terms, payment period
promotion
advertising, personal selling, public relations, sales promotion, direct marketing
place
outlets, channels, coverage, transportation, stock level
The evaluation phase(Strategic marketing process)
comparing results with plans to identify deviations; acting on deviations-->exploiting a positive deviation; correcting a negative deviation
Profit
the money left after a business firm's total expenses are subtracted from its total revenues or sales and is the reward for the risk it undertakes in marketing its offerings
Strategy
an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals
core values
fundamental, passionate, and enduring principles of an organization that guide its conduct over time
mission statement
statement of the organizations function in society, often identifying its customers, markets, products and technologies (vision)
organizational culture
consists of the set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization
business
the clear, broad, underlying industry or market sector of an organization's offering
goals/objectives
the targets of performance to be achieved, often by a specific time.
market share
the ratio of a firm's sales revenue to the total sales revenue of all firms in the industry, including the firm itself
marketing dashboard
the visual display of the essential information related to achieving a marketing objective.
marketing metric
a measure of the quantitative value or trend of a marketing activity or result.
marketing plan
a road map for the marketing activities of an organization for a specified future time period, such as one year or five years
business plan
a road map for the entire organization for a specified future time period, such as one year or five years
business portfolio analysis
a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments
diversification analysis
a technique a firm uses to search for growth opportunities from among current and new products and markets
strategic marketing process
the approach whereby an organization allocates its marketing mix resources to reach its target markets
situation analysis
involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external factors and trends affecting it.
SWOT analysis
an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats
Market Segmentation
involves aggregating prospective buyers into groups, or segments, that 1) have common needs and 2) will respond similarly to a marketing action
Points of difference
characteristics of a product that make it superior to competitive substitutes
Marketing Strategy
is the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Marketing tactics
detailed day-to-day operational decisions essential to the overall success of marketing strategies