Chapter 8

Nature of strategy implementation

Less than 10% of strategies formulated were implemented Managers, supervisors, and all employees are affected

Current Marketing issues

1. 2. 3. 4. 5. 6. 7. Use exclusive dealership or multiple channels of distribution Use heavy, light or no tv advertising Limit or not the share of business done with a single customer Price leader or price follower Complete or limited warranty To reward sales people with straight salary, commission or salary/commission To advertise online or not

New Principles in Marketing

1. 2. 3. 4. 5. 6. 7. Dont just talk to the customer work with them throughout the marketing process Give consumers a reason to participate Listen to and join to online conversations outside your companys website Resist the temptation to sell. Attract instead Dont control online conversations. Let it flow freely Find a marketing technologist Embrace text messaging and chatting

Advertising Media - Ages 18-27 spend more time on the internet - Companies are redesigning wedbsites to make it more interactive

Purpose Based marketing - Show customers how to improve their lives - Need to build trust and emotional connection to the customer to differentiate the product - Promote the price but at the same time show intrinsic value

Market Segmentation
better for small and specialized firms subdividing distinct subsets of customers according to needs and buying habits. It is important because:

1. market devt, penetration, product devt, diversification need marketing segmentation approach 2. helps firms operate using limited resources 3. directly affect marketing mix

Product Positioning
Steps required: 1. select key criteria 2. diagram a two dimensional product positioning map based on criteria 3. plot competitor in matrix 4. Identify areas in positioning map where company would be competitive 5. Develop marketing plan based on that Rules for using product positioning as a strategy implementation 1. look for hole or vacant niche 2. Dont serve 2 segments with same strategy 3. Dont position yourself in the middle of the map

Finance and accounting issues

1. 2. 3. 4. 5. 6. 7. Raise capital with short-term long-term debt, preferred stock or common stock Lease or buy fixed assets Determine appropriate dividend payout ratio Use LIFO, FIFO Extend time of A/R Establish certain percentage discount on accounts within a specified period Determine amount of cash

Projected financial statements Projected financial statement analysis allows an org to examine expected results of various actions and approaches. 6 steps: 1. Prepare projected income statement before the bal sheet 2. Use percentage sales method to project COGS 3. Calculate projected net income 4. Subtract from the NI any dividends to be paid for that year 5. Project the balance sheet items

Financial Budgets - Document that details how funds will be obtained and spent for a specified period of time - Most common type of budget = cash budget

Research and Devt issues

Developing new products that will allow effective strategy implementation 1. Emphasize product or process improvement 2. stress basic or applied research 3. be leaders or followers in R&D 4. develop robotics or manual type 5. spend a high, ave, or low amount in R&D 6. perform R&D within the firm or outsource 7. Use university researchers or private sector researchers