Chap 1 Flashcards
“In what markets will our particular resources be most effective in implementing the marketing concept?.”
Marketing Strategy and Planning
- The kind of contribution that each product or product line is expected.
- The relative share of the firm’s resources to be devoted to each product or product line.
Specification of product mix strategy:
2 kinds of top management decisions:
Corporate Marketing Planning
Product Mix Strategy
the process by which an organization sets its long term priorities regarding products and market
Corporate marketing planning
provides clear guidance to the middle managers about the top management’s expectation.
Product mix strategy
2 considerations being specified in a
corporate strategy:
- The range of market to be served
- The kinds of products to be offered
6 Major Environmental Forces
Demographics
Social and Cultural Values
Economic Factors
Technology
Legal and Regulatory Actions
Competition
age, distribution of the population,birthrates, population growth,
regional population shifts, and the percentage of two-worker household
Demographics
attitudes towards health and nutrition, the need for self expression, materialism, , ecological concerns, and product safety.
Social and Cultural Values
inflation, unemployent rates, economic growths, raw material scarcities, energy cost, iterest rates, import duties, and excise tax.
Economic Factors
developing and anticipated
changes that affect the kinds of products available in the market and the kinds of processes used to produced these products.
Technology
regulation on the type of advertising availab;e to the product,
product labeling and testing requirements,
limitations regarding product contents, pollution control, and restrictions or incentives with respect to imports or exports.
Legal and Regulatory Actions
identity of the competitors and the
type of focus of competition may change because
of:
1. the entry of new firms 9especially foreign)
2. The acquisition of a small competitor by a large, well-financed organization.
3. Deregulation, changing economic conditions, or new production processes that foster increased price competition.
4. Changing social and cultural values or new technology
Competition
Strength and Weaknesses
In the broadest sense, resources and
competencies include:
Financial resources, such as cash
reserves
Labor and managerial skills
Production capacity and efficient
equipment
Research and development skills and
patents
Control over key raw materials
Size and expertise of the sales force
Efficient or effective distribution
channels and systems
Strength and Weakness
Core competencies
Strategic Alliances