marketing ch 22

Finding and Using What Really Works
(1) strategy,
(2) execution,
(3) culture, and
(4) structure.
Firms with excellence in all four of these areas are likely to achieve superior business performance. Researchers concluded that what really matters is flawless execution.
define where the organization is trying to go
are the measuring sticks used to determine whether the efforts are successful.
Long-Range Marketing Plans
cover marketing activities from two to five years into the future. Except for firms in industries such as autos, steel, or forest products, marketing plans rarely go beyond five years into the future.
Annual Marketing Plans
developed by a marketing or product manager (discussed later in the chapter) in a consumer products firm such as General Mills, annual marketing plans deal with marketing goals and strategies for a product, product line, or entire firm for a single year.
Porter’s Generic Business Strategies
developed a framework in which he identifies four basic, or “generic,” strategies.
generic business strategy
can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage.
1. cost leadership strategy
focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments.
2. differentiation strategy
requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments. This allows the firm to charge a price premium(toys in happy meals).
3. cost focus strategy
involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments. Retail chains targeting only a few market segments in a restricted group of products often use a cost focus strategy successfully
4. differentiation focus strategy
requires products to have significant points of difference to target one or only a few market segments.
Communicate Goals and the Means of Achieving Them
Those called on to implement plans need to understand both the goals sought and how they are to be accomplished.
Have a Responsible Program Champion Willing to Act
Successful programs almost always have a product or program champion who is able and willing to cut red tape and move the program forward.
Reward Successful Program Implementation
When an individual or a team is rewarded for achieving the organization’s goal, they have maximum incentive to see a program implemented successfully
Take Action and Avoid Paralysis by Analysis
Management experts warn against “paralysis by analysis,” the tendency to excessively analyze a problem instead of taking action. To overcome this pitfall, they call for a “bias for action” and recommend a “do it, fix it, try it” approach.
Line positions
have the authority and responsibility to issue orders to the people who report to them.
day-to-day operations of the organization
staff positions
have the authority and responsibility to advise people in line positions but cannot issue direct orders to them.
-supporting line functions
-staff personnel and staff managers
functional groupings
Organizational groupings that represent the different departments or business activities within a firm
market-based groupings
Organizational groupings that use specific customer segments
marketing ROI
The application of modern measurement technologies to understand, quantify, and optimize marketing spending
product line groupings
Organizational groupings in which a unit is responsible for specific product offerings
product or program champion
A person who is able and willing to cut red tape and move the program forward
sales response function
Relates the expense of marketing effort to the marketing results obtained
share points
An analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm
synergy analysis
Seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies

Get access to
knowledge base

MOney Back
No Hidden
Knowledge base
Become a Member