MKTG 2030 Chapter Notes - Chapter 2: Customer Experience, Privately Held Company, Canadian Tire

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3 Mar 2015
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Developing Successful Marketing Strategies
Canadian Tire: Creation and Growth of a Visionary Organization
-John and Alfred Billes, purchased Hamilton Tire and Garage Ltd.
-Sold the venture in 1923 to establish Canadian Tire Crop.
-Store has become a large chain offering goods/services that meet every day needs
-In excess of 1700 general merchandise, sporting goods, clothing stores, gas stations
-Core business: Canadian Tire Retail, PartSource (automotive parts speciality chain store), Canadian
Tire Financial (Master Card), Canadian Tire Petroleum
-Core values: honesty, integrity and respect
oWant to create sustainable growth
oSmartStore: creates and delivers customer experiences (new store format)
Today’s Organizations
Kinds of Organizations
-Organization: legal entity of people who share a common mission
oOffer products, services, ideas and experiences that create value for the organizations
customers
-Business firm: privately owned organization that serves a customer to earn profits
oProfit: money left after a business firms total expenses are subtracted from total revenue
Reward for the risk undertaken in marketing its offerings
-Non-profit organization: non-governmental organization, serve the customers wants/needs but do not
have profit as a goal
oWant operational efficiency/client satisfaction
oNeeds sufficient funds
-Industry: organizations that develop similar offerings, when grouped together
oNeed to make strategic decisions that reflect dynamics of that industry
What is Strategy?
-Strategy: organization’s long-term course of action designed to deliver a unique customer experience
while achieving its goals
oMarketing helps set the direction and meet the pre-established goals
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-Strategies help focus and direct effort and scare resources to accomplish goals
Structure of Today’s Organizations
-Large organizations; usually complex and generally
consist of 3 organizational levels
Corporate Level
-This is where top management directs overall strategy for
entire organization
-BOD and senior executives possess variety of
skills/experiences that help foster innovative strategies
-President/CEO: highest-ranking officer in the company;
usually member of BOD
-Chief Marketing Officer (CMO): bring multi-industry backgrounds, cross-functional management
expertise, analytical skills and marketing insights
oMarketing accountability: responsibility for the systematic management of marketing
resources and processes to achieve measurable gains in return on marketing investment and
increased marketing efficiency; need to maintain quality and increase value of the
company
Strategic Business Unit (SBU) Level
-Managers set more specific strategies for businesses to exploit value-creating opportunities
-SBU: each group, in a multimarket/multiproduct firm is a subsidiary, division or unit of the organization
that markets a set of related offerings to clearly defined group of customers
Function Level
-Each SBU has a functional level
- Groups of specialists that create value for the organization (departments)
oMarketing, HR, R & D, Accounting, Information Systems
-Strategic direction becomes more specific and focused
oMarketing dept: look outward and keep focused on creating customer value
Listen to customers, develop and produce offerings, implement marketing program
activities
Can assist managers at higher levels to assess environmental trends or
assist in strategic planning
-Cross-functional teams: small # of people from different departments who are mutually
accountable to accomplish a task/common set of performance goals
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oCan have representatives from outside the organization
New Era of Marketing Accountability and Skills Employers Want from Marketers
-Marketers seem to struggle to demonstrate accountability through linking marketing activities and
strategies to organizational outcomes
-Capabilities required: financial awareness, cross-functional collaboration, decision influence, ROI
assessment, data analytics
Strategy in Visionary Organizations
-Forward looking: anticipate events and respond to them with efficiency and effectiveness
Organizational Foundation: Why Does it Exist?
-It is the organizations philosophical reason for being
-The following there elements help guide and inspire the employees
Core Values
-Fundamental, ensuring principles that guide organizational conduct over time
-Consistent with beliefs and character of the firms founders/senior management
-Inspire and motivate the shareholders
-Should not change due to short-term financial, operational or marketing concerns
-Core values guide the organizations conduct
-Must be communicated to and supported by management and employees
Mission/Vision
-Statement of organization’s function in society
-Identifies the customers, markets, products and technologies
-Needs to be clear, concise, meaningful, inspirational, and long-term
-Organizations are adding a social element to the mission statement (want to be good corporate
citizens)
Organizational Culture
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