1. See "The New Breed of Strategic Planning," Business Week, September 7, 1984, pp. 62-68.
2. See Peter Drucker, Management: Tasks, Responsibilities and Practices (New York: Harper & Row, 1973), ch. 7.
3. See "The Hollow Corporation," Business Week, March 3, 1986, pp. 57-59. Also see William H. Davidow and Michael S. Malone, The Virtual Corporation (New York: HarperBusiness, 1992).
4. For more discussion, see Laura Nash, "Mission Statements—Mirrors and Windows," Harvard Business Review, March-April 1988, pp. 155-56.
5. For more on Kodak's imaging strategy, see Irene M. Kunii, "Fuji: Beyond Film," Business Week, November 22, 1999, pp. 132-38.
6. Derek Abell, Defining the Business: The Starting Point of Strategic Planning (Upper Saddle River, NJ: Prentice-Hall, 1980), ch. 3.
7. Theodore Levitt, "Marketing Myopia," Harvard Business Review, July-August 1960, pp. 45-56.
8. See Roger A. Kerin, Vijay Mahajan, and P. Rajan Varadarajan, Contemporary Perspectives on Strategic Planning (Boston: Allyn & Bacon, 1990).
9. A hard decision must be made between harvesting and divesting a business. Harvesting a business will strip it of its long-run value, in which case it will be difficult to find a buyer. Divesting, on the other hand, is facilitated by maintaining a business in a fit condition in order to attract a buyer.
10. For a contrary view, however, see J. Scott Armstrong and Roderick J. Brodie, "Effects of Portfolio Planning Methods on Decision Making: Experimental Results," International Journal of Research in Marketing (1994), pp. 73-84.
11. The same matrix can be expanded into nine cells by adding modified products and modified markets. See S. J. Johnson and Conrad Jones, "How to Organize for New Products," Harvard Business Review, May-June 1957, pp. 49-62.
12. See Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (New York: Free Press, 1980), ch. 2.
13. Marcia Stepanek, "How Fast Is Net Fast?" Business Week, November 1, 1999, pp. EB52-EB54.
14. See Robin Cooper and Robert S. Kaplan, "Profit Priorities from Activity-Based Costing," Harvard Business Review, May-June 1991, pp. 130-35.
15. See Thomas J. Peters and Robert H. Waterman, Jr., In Search of Excellence: Lessons from America's Best-Run Companies (New York: Harper & Row, 1982), pp. 9-12. The same framework is used in Richard Tanner Pascale and Anthony G. Athos, The Art of Japanese Management: Applications for American Executives (New York: Simon & Schuster, 1981).
16. See Terrence E. Deal and Allan A. Kennedy, Corporate Cultures: The Rites and Rituals of Corporate Life (Reading, MA: Addison-Wesley, 1982); "Corporate Culture," Business Week, October 27, 1980, pp. 148-60; Stanley M. Davis, Managing Corporate Culture (Cambridge, MA: Ballinger, 1984); and John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: Free Press, 1992).
17. Stephen Baker, "The Future Goes Cellular," Business Week, November 8, 1999, p. 74.
18. Michael J. Lanning and Edward G. Michaels, "Business Is a Value Delivery System," McKinsey Staff Paper, no. 41, June 1988 (McKinsey & Co., Inc.).
19. Perrault and McCarthy, Basic Marketing: A Global Managerial Approach, 13th ed. (Burr Ridge, IL: 1996).
20. Michael George, Anthony Freeling, and David Court, "Reinventing the Marketing Organization," The McKinsey Quarterly, no. 4 (1994): 43-62.
21. For further reading, see Robert Dewar and Don Shultz, "The Product Manager, an Idea Whose Time Has Gone," MarketingCommunications, May 1998, pp. 28-35; "The Marketing Revolution at Procter and Gamble," Business Week, July 25, 1988, pp. 72-76; Kevin T. Higgins, "Category Management: New Tools Changing Life for Manufacturers, Retailers," Marketing News, September 25, 1989, pp. 2, 19; George S. Low and Ronald A. Fullerton, "Brands, Brand Management, and the Brand Manager System: A Critical Historical Evaluation," Journal of Marketing Research, May 1994, pp. 173-90; and Michael J. Zanor, "The Profit Benefits of Category Management," Journal of Marketing Research,, May 1994, pp. 202-13.
22. Stanley F. Slater and John C. Narver, "Market Orientation, Customer Value, and Superior Performance," Business Horizons, March-April 1994, pp. 22-28. See also Frederick E.
Webster, Market-Driven Management (New York: John Wiley, 1994); John C. Narver and Stanley F. Slater, "The Effect of a Market Orientation on Business Profitability, "Journal of Marketing October 1990, pp. 20-35; Bernard Jaworski and Ajjay K. Kohli, "Market Orientation: Antecedents and Consequences," Journal of Marketing July 1993, pp. 53-70; and Rohit Deshpande and John U. Farley, "Measuring Market Orientation. "Journal of Market-Focused Management 2 (1998): 213-32.
23. Richard E. Anderson, "Matrix Redux," Business Horizons, November-December 1994, pp. 6-10.
24. For further reading on marketing organization, see Nigel Piercy, Marketing Organization: An Analysis of Information Processing Power and Politics (London: George Allen & Unwin, 1985); Robert W. Ruekert, Orville C. Walker, and Kenneth J. Roering, "The Organization of Marketing Activities: A Contingency Theory of Structure and Performance," Journal of Marketing, Winter 1995, pp. 13-25; Tyzoon T, Tyebjee, Albert V. Bruno, and Shelly H. McIntyre, "Growing Ventures Can Anticipate Marketing Stages," Harvard Business Review, January-February 1983, pp. 2-4; and Andrew Pollak, "Revamping Said to be Set at Microsoft," New York Times, February 9, 1999, p. C1.
25. Edward E. Messikomer, "DuPont's 'Marketing Community,' " Business Marketing, October 1987, pp. 90-94. For an excellent account of how to convert a company into a market-driven organization, see George Day, The Market-Driven Organization: Aligning Culture, Capabilities, and Configuration to the Market (New York: Free Press, 1989).
26. For more on developing and implementing marketing plans, see H. W. Goetsch, Developing, Implementing, and Managing an Effective Marketing Plan (Chicago: American Marketing Association; Lincolnwood, IL: NTC Business Books, 1993).
27. Thomas V. Bonoma, The Marketing Edge: Making Strategies Work (New York: Free Press, 1985). Much of this section is based on Bonoma's work.
28. Emily Denitto, "New Steps Bring Alvin Ailey into the Business of Art," Crain's New York Business, December, 1998, pp. 4, 33.
29. Alternatively, companies need to focus on factors affecting shareholder value. The goal of marketing planning is to increase shareholder value, which is the present value of the future income stream created by the company's present actions. Rate-of-return analysis usually focuses on only 1 year's results. See Alfred Rapport, Creating Shareholder Value, rev. ed. (New York: Free Press, 1997).
30. For additional reading on financial analysis, see Peter L. Mullins, Measuring Customer and Product Line Profitability (Washington, DC: Distribution Research and Education Foundation, 1984).
31. See Robert S. Kaplan and David P. Norton, The Balanced Scorecard (Boston: Harvard Business School Press,1996).
32. Sam R. Goodman, Increasing Corporate Profitability (New York: Ronald Press, 1982), ch. 1. Also see Bernard J. Jaworski, Vlasis Stathakopoulos, and H. Shanker Krishnan, "Control Combinations in Marketing: Conceptual Framework and Empirical Evidence," Journal of Marketing, January 1993, pp. 57-69.
33. For further discussion of this instrument, see Philip Kotler, "From Sales Obsession to Marketing Effectiveness," Harvard Business Review, November-December 1977, pp. 67-75.
34. See Philip Kotler, William Gregor, and William Rodgers, "The Marketing Audit Comes of Age," Sloan Management Review, Winter 1989, pp. 49-62.
he marketing environment is changing at an accelerating rate. Given the following changes, the need for real-time market information is greater than at any time in the past:
From local to national to global marketing: As companies expand their geographical market coverage, their managers need more information more quickly.
From buyer needs to buyer wants: As incomes improve, buyers become more selective in their choice of goods. To predict buyers' responses to different features, styles, and other attributes, sellers must turn to marketing research.
From price to nonprice competition: As sellers increase their use of branding, product differentiation, advertising, and sales promotion, they require information on these marketing tools' effectiveness.
Fortunately, the exploding information requirements have given rise to impressive new information technologies: computers, microfilm, cable television, copy machines, fax machines, tape recorders, video recorders, videodisc players, CD-ROM drives, the Internet.1 Some firms have developed marketing information systems that provide company management with rapid and incredible detail about buyer wants, preferences, and behavior. For example, the Coca-Cola Company knows that we put 3.2 ice cubes in a glass, see 69 of its commercials every year, and prefer cans to pop out of vending machines at a temperature of 35 degrees. Kimberly-Clark, which makes Kleenex, has calculated that the average person blows his or her nose 256 times a year. Hoover learned that we spend about 35 minutes each week vacuuming, sucking up about 8 pounds of dust each year and using 6 bags to do so.2 Marketers also have extensive information about consumption patterns in other countries. On a per capita basis within Western Europe, for example, the Swiss consume the most chocolate, the Greeks eat the most cheese, the Irish drink the most tea, and the Austrians smoke the most cigarettes.3
Nevertheless, many business firms lack information sophistication. Many lack a marketing research department. Others have departments that limit work to routine forecasting, sales analysis, and occasional surveys. In addition, many managers complain about not knowing where critical information is located in the company; getting too much information that they can't use and too little that they really need; getting important information too late; and doubting the information's accuracy. In today's information-based society, companies with superior information enjoy a competitive advantage. The company can choose its markets better, develop better offerings, and execute better marketing planning.
Was this article helpful?
There are people all over the world trying to find ways to make money online. From stay at home moms looking to make a few extra dollars to college students and entrepreneurs, the allure of making your own hours and working from home or from the local coffee shop is very appealing.