implementation strategi inmarketing

1. Chapter 8
Implementing Strategies: Marketing,
Finance/Accounting, R&D, and MIS Issues
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Ch 8 -1
Strategic Management:
Concepts & Cases
13th Edition
Fred David

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Ch 8 -2

3. “The greatest strategy is doomed
if it’s implemented badly.”
– Bernard Reimann
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Ch 8 -3
Implementing Strategies

4. Less than 10% of strategies formulated
are successfully implemented!
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Ch 8 -4
The Nature of Strategy
Implementation

5. Marketing decisions requiring policies
 Exclusive dealerships or multiple channels of
distribution
 Heavy, light, or no TV advertising
 To limit or not the share of business with a single
customer
 Price leader or price follower
 Offer complete or limited warranty
 Reward salespeople with commission or salary
 Advertise online or not
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Ch 8 -5
Marketing Issues

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Ch 8 -6

7. Current Marketing Issues
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 Advertising media
 Purpose-based marketing

8.  Market segmentation
 Product positioning
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Ch 8 -8
Marketing Issues

9. Market Segmentation
 Subdividing of a market into
distinct subsets of customers
according to needs and buying
habits
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Marketing Issues

10. Market Segmentation
Market Segment
Basis Psychographic
Behavioral
Geographic
Demographic
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11.  Market-development, product-
development, market-penetration,
and diversification strategies require
market segmentation
 Market segmentation allows
operating with limited resources;
enables small firms to compete
successfully
 Market segmentation decisions
affect marketing mix variables
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Ch 8 -11
Market Segmentation

12.  Product
 Place
 Promotion
 Price
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Marketing Mix Variables

13. Marketing Issues
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Schematic representations that reflect
how products/services compare to
competitors’ on dimensions most
important to success in the industry
Product Positioning

14. Product Positioning Steps
1. Select key criteria
2. Diagram map
3. Plot competitors’ products
4. Look for niches
5. Develop marketing plan
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Ch 8 -14

15. Product-Positioning Map for Banks
Personal
Impersonal
Aggressive Conservative
Bank A
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Bank B
Bank C
Bank D
Bank E

16. Product-Positioning Map for Personal
Computers High Capability
Good Customer
Service
Bad Customer
Service
Firm 1
Firm 2
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Firm 3
Low Capability
Firm 4

17. Product-Positioning Map for
Menswear Retail Stores
Conservative, everyday
menswear
Low Price High Price
Average
department store
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Very latest, fashionable
menswear
Average specialty
chain
Average mass
merchandiser or
discounter

18. Product-Positioning Map for the
Rental Car Market
High Convenience
High Customer
Loyalty
Low Customer
Loyalty
Firm 1
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Firm 2
Firm 3
Low Convenience

19.  Look for a vacant niche
 Don’t serve two segments with
the same strategy
 Don’t position yourself in the
middle of the map
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Ch 8 -19
Product Positioning

20. Finance/Accounting Issues
 Acquiring needed capital
 Developing projected financial
statements
 Preparing financial budgets
 Evaluating the worth of a business
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Ch 8 -20

21.  Raise capital – short-term debt, long-term
debt, preferred, or common stock
 Lease or buy fixed assets
 Determine appropriate dividend payout
ratio
 LIFO, FIFO, or market-value accounting
 Timeframe of accounts receivable
 Discounts on accounts
 Amount of cash to be kept on hand
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Finance/Accounting Issues

22.  EPS/EBIT analysis
 Earnings per share/earnings before interest
and taxes
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Finance/Accounting Issues
Debt vs. Equity Decisions

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Ch 8 -23

24.  Allows an organization to examine the
expected results of various actions and
approaches
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Finance/Accounting Issues
Projected Financial Statement Analysis

25. Steps in Preparing Projected Financial
Statements
1. Prepare income statement before
balance sheet (forecast sales)
2. Use percentage of sales method to
project CGS & expenses
3. Calculate projected net income
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Finance/Accounting Issues

26. Steps in Preparing Projected Financial
Statements (cont’d)
4. Subtract dividends to be paid from net income
and add remaining to retained earnings
5. Project balance sheet items beginning with
retained earnings
6. List comments (remarks) on projected
statements
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Finance/Accounting Issues

27. Projected Income Statement
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28. Projected Balance Sheet
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29. Details how funds will be obtained
and spent for a specified period of
time
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Finance/Accounting Issues
Financial Budget

30. Types of Budgets
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 Cash budgets
 Operating budgets
 Sales budgets
 Profit budgets
 Factory budgets
 Capital budgets
 Expense budgets
 Divisional budgets
 Variable budgets
 Flexible budgets
 Fixed budgets

31. Evaluating Worth of a Business
 Central to strategy implementation –
integrative, intensive, and
diversification strategies often
implemented through acquisitions of
other firms
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Finance/Accounting Issues

32. 1. What a firm owns
2. What a firm earns
3. What a firm will bring in the market
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Evaluating Worth of a Business
Three Basic Approaches

33. Evaluating Worth of a Business
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 Net worth or stockholder’s equity
 Net profit – conservative value
would be five times the firm’s
current annual profits
 Price-earnings ratio method
 Outstanding shares method

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35. Research & Development Issues
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New products and improvement of
existing products that allow for effective
strategy implementation

36. Constraints
 Level of support constrained by resource
availability
 Technological improvements shorten
product life cycles
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Research & Development Issues

37. Three Major R&D Approaches to
Implementing Strategies
1. First firm to market new technological
products
2. Innovative imitator of successful products
3. Low-cost producer of similar but less
expensive products
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Research & Development Issues

38. Management Information
Systems (MIS) Issues
Having an effective management
information system (MIS) may be the
most important factor in differentiating
successful from unsuccessful firms.
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39. Functions of MIS
 Information collection, retrieval, and
storage
 Keeping managers informed
 Coordination of activities among divisions
 Allows firm to reduce costs
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MIS Issues

40. All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
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