Marketing’s Strategic Role in the OrganizationLearning ObjectivesDisneyOrganizational LevelsOrganizational Strategic PlanningThe Strategic Role of Brand LoyaltyThe Strategic Planning ProcessThe Role of MarketingMarketing Strategy and the InternetCorporate Strategy DecisionsCorporate VisionCore Values and PurposeUnilever’s Mission StatementSlide 14Objectives and Resource AllocationCustomer Relationship ManagementCorporate Growth StrategiesSlide 18Corporate Growth Strategies (con’t)Business Unit CompositionSBU EvaluationBusiness Strategy DecisionsGeneral Business StrategiesMarketing Strategy DecisionsSocial Responsibility as a StrategyInternational Entry StrategiesInternational Strategic OrientationExecuting Strategic PlansSummaryC H A P T E RC H A P T E R© 2007 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinMarketing’s StrategicRole in theOrganizationMarketing’s StrategicRole in theOrganization33-2© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdLearning ObjectivesLearning ObjectivesLearning ObjectivesLearning ObjectivesAfter studying this chapter, you should be able to:Discuss the three basic levels in an organization and the types of strategic plans developed at each level.Understand the organizational strategic planning process and the role of marketing in this process.Describe the key decisions in the development of corporate strategy. Understand the different general business strategies and their relationship to business marketing, product marketing, and international marketing strategies.Realize the importance of relationships and teamwork in executing strategic plans.3-3© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdDisneyDisneyDisneyDisneyDisney’s long-run objective is to become the world’s premier family entertainment company through the ongoing development of its powerful brand and character franchises. Its business is “making people happy by turning fantasy into reality.”3-4© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdBusinessBusinessLevelLevelFunctionalFunctionalLevelLevelUnits within the organization that are generally managed as self-contained businesses.Includes all of the various functional areas within a business unit. CorporateCorporateLevelLevelThe highest level in any organization.Organizational LevelsOrganizational LevelsOrganizational LevelsOrganizational Levels3-5© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdOrganizational Strategic PlanningOrganizational Strategic PlanningOrganizational Strategic PlanningOrganizational Strategic PlanningStrategic planning for multibusiness, multiproduct organizations typically occurs at each organizational level. Strategic plans at higher organizational levels provide direction for strategic plans at lower levels.3-6© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Strategic Role of Brand LoyaltyThe Strategic Role of Brand LoyaltyThe Strategic Role of Brand LoyaltyThe Strategic Role of Brand LoyaltyBrand LoyaltyBrand LoyaltyName AwarenessName AwarenessPerceived QualityPerceived QualityBrandBrandEquityEquityCompetitiveCompetitiveAdvantageAdvantageCognitive Cognitive AssociationsAssociationsBrand AssetsBrand Assets3-7© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThe Strategic Planning ProcessThis process applies to strategic planning at every level. In the business world, most organizations are involved in different stages of the process simultaneously and do not necessarily follow such a step-by-step approach.Exhibit 3-23-8© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Role of MarketingThe Role of MarketingThe Role of MarketingThe Role of MarketingExhibit 3-23-9© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdMarketing Strategy and the InternetMarketing Strategy and the InternetMarketing Strategy and the InternetMarketing Strategy and the InternetThe failure of many dot-com companies has raised many important questions regarding the lessons firms should learn from Internet business. Internet usage continues to grow globally, and many traditional firms have found viable applications of Web technology.Internet selling direct to consumers is frequently employed as another channel of communication and interaction.One of the primary effects of the Internet has been the increased availability of information and the emphasis on price.3-10© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCorporate Corporate Strategy Strategy DecisionsDecisionsVisionVisionObjectives &Objectives &Resource Resource AllocationAllocationGrowthGrowthStrategyStrategyBusinessBusinessUnitUnitCompositionCompositionCorporate Strategy DecisionsCorporate Strategy DecisionsCorporate Strategy DecisionsCorporate Strategy Decisions3-11© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCorporate VisionCorporate VisionCorporate VisionCorporate VisionA corporate vision represents the basic values of an organization. The vision specifies what the organization stands for, where it plans to go, and how it plans to get there. Corporate Vision Components: MarketsProducts and servicesGeographic domain Core competenciesOrganizational objectives Organizational philosophy Organizational self-conceptDesired public image3-12© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCore Values and PurposeCore Values and PurposeCore Values and PurposeCore Values and PurposeCore values are the small set of guiding principles that represent the enduring tenets of an organization. Core purpose reflects the company’s reason for being or its idealistic motivation for doing work.3-13© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdUnilever’s Mission StatementUnilever’s Mission StatementUnilever’s Mission StatementUnilever’s Mission StatementUnilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.Our