Chapter 8
Marketing, Finance/ Accounting,
R&D, And MIS Issues
Lecturer: Dr. Long Nguyen
Slides prepared by Pham Tra My (MSc)
Implementing Strategies
“The greatest strategy is doomed if it’s
implemented badly.”
– Bernard Reimann
Actually, less than 10% of strategies formulated are
successfully implemented!
1. 1. Marketing Issues
❖ The shift in marketing towards interactive, customer-centric
strategies that leverage digital tools and consumer insights to
foster engagement and trust.
❑ More perspectives to be considered when making
marketing decisions
❑ Consumer Privacy and Internet Tracking
❑ Building Two-Way Relationships
❑ Online Communities and Wikis
❑ Incentivizing Consumer Interaction
❑ Customer Blogs and Feedback
❑ Customer Trust and Freedom
1. 1. Marketing Issues
The New Principles of Marketing
❖ Don’t just talk at consumers
❖ Give consumers a reason to participate
❖ Listen to, and join the conversation outside your
company’s Website
❖ Resist the temptation to sell, sell, sell. Instead attract,
attract, attract.
❖ Don’t control online conversations; let it flow freely
❖ Find a “marketing technologist”
❖ Embrace instant messaging and chatting
1. 1. Marketing Issues
Countless marketing variables affect the success or failure of
Strategy Implementation (SI).
Two variables are of central importance to SI:
▪ Market segmentation
▪ Product positioning
1. 2. Market Segmentation
❖ Market Segmentation - Subdividing of a market into
distinct subsets of customers according to needs and
buying habits
Geographic
Demographic
Market Segment
Basis Psychographic
Behavioral
1. 2. Market Segmentation
❖ Market Segmentation is an important variable in strategy
implementation:
❑ Key Strategies: Success in market development, product
development, market penetration, and diversification
strategies is essential.
❑ Resource Efficiency: Firms can operate with limited
resources by avoiding reliance on mass production,
distribution, and advertising.
❑ Small Firm Advantage: Small firms can effectively
compete with larger ones by focusing on maximizing per-
unit profits and per-segment sales.
1. 2. Market Segmentation
❖ Market Segmentation decisions directly affect marketing mix:
1. 2. Product Positioning
❖ Product Positioning - entails developing schematic
representations that reflect how a firm’s products or services
compare to competitors’ on dimensions most important to
success in the industry.
❖ Product Positioning Steps:
1. Select key criteria
2. Diagram map
3. Plot competitors’ products
4. Look for niches
5. Develop marketing plan
1. 2. Product Positioning
1. 2. Product Positioning
❖ Maps and Criteria:
❑ Multiple maps may be needed to evaluate various strategies
❑ Multi-dimensional scaling allows for more criteria but
requires advanced tools.
❖ Positioning Rules:
❑ Target unserved niches.
❑ Avoid using the same strategy for different segments.
❑ Stay out of the middle unless competition is minimal.
❖ Effective Strategy: Differentiate uniquely and manage
expectations by underpromising and overdelivering to build trust
and satisfaction.
2. Finance/Accounting Issues
❖ Acquiring Capital to Implement Strategies:
❑ Equity - Common stock
❑ Debt - Bonds
❑ Debt - Borrow from lenders
❑ The EPS/EBIT analysis helps determine the best financing
option.
❖ New source of Funding
❖ Projected Financial Statements: analyze the financial impact
of strategic decisions, aiding in feasibility evaluation and
meeting funding requirements.
2. Finance/Accounting Issues (cont)
❖ Financial Budgets:
❑ Budgets allocate resources for implementation
❑ Avoid inefficiencies or becoming rigid constraints
❖ Evaluating Business Worth: Business valuation
❑ Methods include: net worth, future profit potential, price-
earnings ratio, and outstanding shares.
❑ These assessments blend quantitative and qualitative factors.
❖ Deciding to Go Public:
❑ Raises capital but reduces owner control and incurs
significant costs
❑ Mainly for firms with over $10 million in sales.
3. Research and Development (R&D) Issues
❖ R&D - New products and improvement of existing products
that allow for effective strategy implementation.
❖ Constraints:
❑ Level of support constrained by resource availability
❑ Technological improvements shorten product life cycles
❖ In-House vs. External R&D:
❑ In-house: Preferred when technical progress is slow,
market growth is moderate, and barriers to entry are high.
❑ External: Suitable when technology changes rapidly,
markets grow quickly, or both progress and growth are
fast.
3. Research and Development (R&D) Issues
❖ Three major R&D approaches to implementing strategies:
1. Be the first firm to market new technological products.
2. Be an innovative imitator of successful products.
3. Be a low-cost producer by mass-producing products with
lower cost than products recently introduced.
Discussion: Pros and Cons of each appoach?
❖ Collaboration Trends : Collaborate with competitors and
universities to reduce costs, accelerate development, and
address regulatory challenges.
❖ Improved Communication between R&D managers and
strategists and faster implementation of research ideas.
4. Management Information System (MIS) Issues
❖ Having an effective management information system (MIS) may
be the most important factor in differentiating successful from
unsuccessful firms.
❖ Functions of MIS:
❑ Information collection, retrieval, and storage
❑ Keeping managers informed
❑ Coordination of activities among divisions
❑ Allows firm to reduce costs
❖ Increasing concern about computer hackers and internet
safeguard.
