Upload
erica-griffin
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
1Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Chapter Six
Business Marketing Planning: Strategic Perspectives
2Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
• Centered on customers• Take an outside-in view of strategy • Demonstrate an ability to sense market trends ahead of their competitors
Market-Driven Organizations
3Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Hierarchy of Strategies
Corporate Strategy What businesses are we in? What are our core competencies? How should we allocate resources? What businesses should we be in?
Business-Level Strategy How do we compete in a given industry? How should we position ourselves against
competitors? Functional Strategy
How can we allocate resources to most efficiently and effectively support business-level strategies?
Marketing manages organization-customer connections.
4Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Marketing: Perhaps Best Understood as:
1. Customer-product connection—linking the customer to the focal offering.
2. Customer-service delivery connection—design and delivery actions involved in providing firm’s goods and services.
3. Customer-financial accountability connection-- Activities and processes that link customers to financial outcomes.
5Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Marketing’s Role in Managing Three Customer Connections
Customer
Product Service Delivery Financial Accountability
Top Management
OperationsHuman Resources,
Accounting
Accounting, Management Information Systems
Marketin
g, Operatio
ns,
Research
and Deve
lopment
Marketing, Accounting,
Management Information Systems
Corporate Strategy
Accou
nting
, Finan
ce
Ma
rke
ting
, O
pera
tion
sH
uma
n R
eso
urc
es
6Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
This approach applies to strategic decisions that:
• Cut across functional areas
• Involve firm’s long-term objectives
• Involve resource allocation
Collective Action Perspective of Strategy Formulation Process
7Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Cross-Functional Connections Explore Interrelationships Between Marketing and Four Business Functions
Formulating Business Marketing Strategy:Vital Cross-Functional Connections
8Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Major business concept components tied together by three important “bridge” elements: customer benefits, configuration, and company boundaries.
CUSTOMER INTERFACE
Fulfillment & SupportInformation & InsightRelationship DynamicsPricing Structure
CORE STRATEGY
Business MissionProduct/Market ScopeBasis for Differentiation
STRATEGIC RESOURCES
Core CompetenciesStrategic AssetsCore Processes
VALUE NETWORK
SuppliersPartnersCoalitions
EFFICIENT / UNIQUE / FIT / PROFIT BOOSTERS
9Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Customer Interface
Fulfillment and support
Information and insight
Relationship dynamics
Pricing structure
10Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Core Strategy—Three Elements
• The business mission describes overall objective of strategy, sets course of direction, and defines performance criteria to measure progress.
• Product/market scope defines where firm competes.
• Basis for differentiation captures essence of how firm competes differently than its rivals do.
11Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Strategic Resources
• Core competencies are set of skills, systems, and technologies that creates uniquely high value for customers.
• Strategic assets are more tangible requirements for advantage. Strategic assets include brands, customer data, distribution coverage, patents.
• Core processes are methodologies and routines that companies use to transform competencies, assets, and other inputs into value for customers.
12Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
The Balanced Scorecard - Translating Strategy Into Operational Terms
Learning and Growth Perspective
Internal Process Perspective
Financial Perspective
Productivity
Long-TermShareholder
Value RevenueGrowth
Customer Perspective
Product/Service Attributes Relationship Image
Price Quality Time Function Partnership Brand
ManageOperations
ManageCustomers
ManageInnovation
ManageRegulatoryand SocialProcesses
HumanCapital
InformationCapital
OrganizationCapital+ +
Cause-and-Effect RelationshipsDefines the chain of logic by which intangible assets will be transformed to tangible value.
Customer Value PropositionClarifies conditions that create value for the customer.
Value-Creating ProcessesDefines processes that transform intangible assets into customer and financial outcomes.
Clustering Assets and ActivitiesDefines intangible assets to be aligned and integrated to create value
13Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Aligning Internal Business Processes to the Customer Strategy
Customer Strategy The Focus of Internal Business Processes
Operations Management Customer Relationship Management Innovation Management
Low Total Cost Strategy Highly Efficient Operating Ease of Customer Access Seek Process Innovations Processes Superb Post-Sales Service Gain Scale EconomiesEfficient, Timely Distribution
Product Leadership Flexible Manufacturing Capture Customer Ideas for Disciplined, High-Performance Strategy Processes New Offering Product Development
Rapid Introduction of Educate Customers about Complex First-to-Market New Products New Products/Services
Complete Customer Deliver Broad Product/ Create Customized Solutions Identify New Opportunities Solutions Strategy Service Line for Customers to Serve Customers
Create Network of Suppliers Build Strong Customer Anticipate Future Customer for Extended Product/ Relationships Needs Service Capabilities Develop Customer Knowledge
Lock-in Provide Capacity for Create Awareness Develop and Enhance Strategies Proprietary Product/ Influence Switching Costs of Proprietary Product
Service Existing and Potential Increase Breadth/Reliable Access and Customers Applications of
Standard Ease of Use
Source: Adapted from Robert S. Kaplan and David P. Norton, Strategy Maps: Converting Intangible Assets into Tangible Outcomes (Boston: Harvard Business School Publishing Corporation, 2004), pp. 322-344.
14Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved.Developed by Cool Pictures and MultiMedia Presentations
Strategy Map Template: Product Leadership
Financial Perspective
CustomerPerspective
InternalPerspective
Learning andGrowthPerspective
“Products and Services That Expand Existing Performance Boundaries into the Highly Desirable”
A Capable, Motivated and Technologically Enabled Workforce
Long-Term Shareholder Value
Manage Total Life-CycleProduct Costs
Revenues fromNew Products
Gross Margins:New Products
Productivity Strategy Revenue Growth Strategy
High-Performance Products: Smaller,Faster, Lighter, Cooler, More
Accurate, More Storage, Brighter…First to market
New CustomerSegments
Operations Management Customer Management Innovation Regulatory and Social
FlexibleRobust
Processes
RapidIntroduction
of NewProducts
SupplyCapacityfor RapidGrowth
In-lineExperimentation
andImprovement
EducateCustomers about
Complex NewProducts/Services
Capture CustomerIdeas for New
Products/Services
Disciplined,High-Performance
ProductDevelopment
ProductDevelopment
Time: From Ideato Market
MinimizeProduct Liability
AndEnvironmental
Impact
Contribute toCommunities
“Find, Motivate, Grow, and Retain the Best Talent”
Human Capital Information Capital Organization Capital
DeepFunctionalExpertise
Creative, VersatileEmployees: Cross-
functional Teamwork
Virtual ProductPrototyping and
Simulation
Computer-AidedDesign and
Manufacturing(CAD/CAM)
Creativity,Innovation