2006 McGraw-Hill Companies, Inc.

, McGraw-Hill/Irwin Slide 22-7

MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES

Finding and Using What Really Works

Strategy: Focused

Execution: Flawless Operations

Culture: Perforance!Oriented

Structure: Fast" Flexi#le" and Flat

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-9
MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES

$llocating %arketing Resources Using Sales

Response Functions

Sales Response Function

%axii&ing 'ncreental Re(enue %inus

'ncreental Cost

$ )uerical Exaple of Resource $llocation

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-0
FIGURE 22-1
FIGURE 22-1 Sales response func!on
s"o#!n$ "e s!ua!on for #o %!fferen &ears
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2
MARKETING BASICS:
DOING WHAT WORKS AND
ALLOCATING RESOURCES

$llocating %arketing Resources Using Sales

Response Functions

$llocating %arketing Resources in Practice

Share Points

Resource $llocation and the Strategic

%arketing Process
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-!
FIGURE 22-2
FIGURE 22-2 T"e srae$!c 'ar(e!n$
process: ac!ons an% !nfor'a!on
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-"
FIGURE A
FIGURE A T"e srae$!c 'ar(e!n$ p"ases
an% correspon%!n$ oupu repors
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

*ong!Range %arketing Plans

$nnual %arketing Plans

+he ,ariety of %arketing Plans

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-3
FIGURE 22-3 Seps a lar$e consu'er
pac(a$e% $oo%s f!r' a(es !n %e+elop!n$ !s
annual 'ar(e!n$ plan
Slide 22-6
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

Porter-s .eneric /usiness Strategies

%arketing Planning Fraeworks:

+he Search for .rowth

.eneric /usiness Strategy

Cost *eadership Strategy

0ifferentiation Strategy

Cost Focus Strategy

0ifferentiation Focus Strategy

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-22
FIGURE 22-4
FIGURE 22-4 )orer,s four $ener!c -us!ness
srae$!es
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2!
Wal.Mar an% /ol(s#a$en
W"!c" of )orer,s $ener!c -us!ness srae$!es
%o "ese f!r's use0
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2"
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

%arketing Planning Fraeworks:

+he Search for .rowth

%arket Penetration

Product 0e(elopent

%arket 0e(elopent

0i(ersification

Profit Enhanceent Option: 'ncrease

Re(enues
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2#
FIGURE 22-5
FIGURE 22-5 )rof! en"ance'en op!ons
for !ncreas!n$ a f!r',s prof!s
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-26
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

Profit Enhanceent Option: 0ecrease Costs

%arketing Planning Fraeworks:

+he Search for .rowth

Econoies of Scale1Experience Cur(e

Other Ways: *ayoffs" +raining" and1or 2uality

Profit Enhanceent Option: 0o /oth

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-27
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

%arket!Product Synergies

%arketing Planning Fraeworks:

+he Search for .rowth

%arketing Synergies 3Rows4

R506%anufacturing Synergies 3Coluns4

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-2$
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

%arket!Product Synergies

%arketing Planning Fraeworks:

+he Search for .rowth

%arket!Product Concentration

%arket Speciali&ation

Product Speciali&ation

Selecti(e Speciali&ation

Full Co(erage
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
+he Strategy 'ssue for the
)ew %illenniu7Finding Synergies
Slide 22-29
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-6
FIGURE 22-6 Mar(e.pro%uc $r!% of
alerna!+e srae$!es for a la#n'o#er
'anufacurer
Slide 22-!0
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-7
FIGURE 22-7 An !%eal 'er$er for Grea
Saes o o-a!n full 'ar(e.pro%uc
co+era$e
Slide 22-!
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-!7
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

One!8andedness Con(enience

9oint ,entures

Soe Planning and Strategy *essons

/ig . plus Pills#ury: Synergies" Segents"

and Partners
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
Slide 22-!$
:eeping Planning Siple at /ig .:
;One!8anded< Con(enience
Plus Co(er $ll the /ases
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-"
THE )LANNING )HASE O* THE
STRATEGIC MARKETING )ROCESS

,alue!/ased Planning

,alue!0ri(en Strategies

Soe Planning and Strategy *essons

/alancing ,alue and ,alues in Strategic

%arketing Plans
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-"2
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

's Planning or 'pleentation the Pro#le=

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-""
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

'ncreasing Ephasis on %arketing

'pleentation
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MARKETING NEWSNET
Slide 22-"#
.E-s 'pleentation Strategies78ow
)eutron 9ack /ecae One of the %ost
$cclaied CEOs of the >?th Century
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-"6
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

Product or Progra Chapion

'pro(ing 'pleentation of %arketing

Progras

Counicate .oals and the %eans of

$chie(ing +he

8a(e a Responsi#le Progra Chapion

Willing to $ct
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-"7
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

'pro(ing 'pleentation of %arketing

Progras

Foster Open Counication to Surface

Pro#les

Reward Successful Progra 'pleentation

+ake $ction and $(oid Paralysis #y $nalysis

$(oid the ;)'8 Syndroe<

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#0
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

'pro(ing 'pleentation of %arketing

Progras

Schedule Precise +asks" Responsi#ilities"

and 0eadlines

$ction 'te *ist

Progra Schedules

.antt Chart

Se@uentially

Concurrently
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#
FIGURE 22-E
FIGURE 22-E Tas(s o co'plee a er'
pro1ec
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#2
FIGURE 22-8
FIGURE 22-8 Gan c"ar for sc"e%ul!n$ "e
er' pro1ec
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#6
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

*ine (ersus Staff and 0i(isional .roupings

Staff Positions

Organi&ing for %arketing

*ine Positions
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 22-9
FIGURE 22-9 Or$an!2a!on of a -us!ness
un! !n a &p!cal consu'er pac(a$e% $oo%s
f!r'3 s"o#!n$ #o pro%uc or -ran% $roups
Slide 22-#7
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#$
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

*ine (ersus Staff and 0i(isional .roupings

Organi&ing for %arketing

Product *ine .roupings

Functional .roupings

.eographical .roupings

%arket!/ased .roupings

%atrix Organi&ation

Category %anager
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-#9
THE IM)LEMENTATION )HASE
O* THE
STRATEGIC MARKETING )ROCESS

Role of the Product %anager

Organi&ing for %arketing

Product %anager

/rand %anager
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-60
FIGURE 22-10
FIGURE 22-10 Un!s #!" #"!c" "e pro%uc
'ana$er an% pro%uc $roup #or(
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-6

+he %arketing Control Process

THE CONTROL )HASE O* THE
STRATEGIC MARKETING )ROCESS

%anageent #y Exception

%easuring Results

+aking %arketing $ctions

2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-62
FIGURE 22-11
FIGURE 22-11 T"e conrol p"ase of "e
srae$!c 'ar(e!n$ process
2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 22-6"

Sales $nalysis
THE CONTROL )HASE O* THE
STRATEGIC MARKETING )ROCESS

Sales $nalysis

Profita#ility $nalysis

RO' %arketing

Sales Coponent 3%icrosales4 $nalysis

Profita#ility $nalysis and RO' %arketing