Lecture 3 Flashcards
Strategic planning
the process of developing and maintaining a strategic fit between organizational goals and capabilities and its changing marketing opportunities.
Strategic Planning: What do you do?
- Define mission statement
- Set goals and objectives
- Design business portfolio
- Develop marketing strategy
Mission statement. Mission and vision.
A statement of the organization’s purpose.
Mission: what the company wants to achieve now.
Vision: what the company wants to achieve in the future.
Criteria of a good mission statement?
- Market oriented
- Motivating
- Emphasize company’s strength
- Do not define in terms of sales and profits
Setting goals and objectives.
- To support the broad mission statement
- Specific, quantifiable & time frame
Designing the business portfolio.
Collection of businesses and products that make up the company.
Product/Market expansion grid
- Market penetration
[Existing product & market] - Market development
[New markets & existing products] - Product development
[New products & existing market] - Diversification
[New products & markets]
Market penetration
Increase sales of existing products to existing markets without changing the products
Market development
Identify and develop new markets for existing products
Product development
offer modified or new products to existing markets
Diversification
Start up or acquire businesses outside the company’s existing products and markets
Develop marketing strategy? Marketing mix
set of tactical marketing tools that the company blends to produce the response it wants in the target market.
Competitor analysis
Process of evaluating competitors’ products and their marketing strategies. -> company can formulate a strategy to gain an advantage.
SWOT analysis
- Strengths
[internal] - Weakness
[internal] - Opportunities
[external] - Threats
[external]
