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
the firm’s strongestresource
Core Competencies
involves exchange of one or more of the resources listed below:
access to sales and distribution networks
new-product technology
production technology and capacity
Strategic Alliances
Mision, Vision,Objectives and Goals
Corporate Mission
Corporate objectives
describes the broad purposes that organization serve and provides general criteria for assessing long- run oraganizational effectiveness.
Corporate mission
reflect’s management’s specific expectations regarding orgnizational performance
Corporate Objectives
2 fundamental directions in selecting a Typical Corpoarte Marketing Strategy:
- Growth
- Consolidation
is one in which sales growth becomes a vehicle for achieving stability or enhanced profitability.
growth strategy
in which frms seeks to achieve current goals through non-growth means.
Consolidation Strategy
in which frms seeks to achieve current goals through non-growth means.
Consolidation Strategy
A firm that finds many opportunities and few problems in its present markets is likely to select some form of current-market strategy.
Growth for Current Market
3 strategies that focus on the current
markets are:
- Market Penetration
- Product Development
- Vertical Integration
• is defined as the strategy aiming and
increasing sales of existing products in
the current markets.
• is achieved by increasing the level
marketing effort (as by increasing
advertising or distribution) or by
lowering prices.
• sales potential of many products goes
unrealized because the company is too
small to initiate such efforts.
Market Penetration
strategies involve the development of new products for existing markets in order to
• meet changing customer needs and ants
• match new competitive offerings
• take advantage of new tecnology
• meet the needs of specific market
segments
Often most important product development efforts are due to competitive introductions that reach untapped market segments.
Product Development
• such integration is often accomplished
when a firm becomes its own supplier(in
backward integration) or intermediary
(Forward integration).
• these strategies will be the most
appropriate when the ultimate markets
have high-growth potential, because
integration requires extensive resources.
Vertical Integration
