Lecture 3: Company and Marketing Strategy: Partnering to Build Customer Relationships; Understanding Competitors

Question 1

Strategic Planning

Answer 1

• The process of developing and maintaining a strategic fit between organisational goals and capabilities and its changing marketing opportunities

Important for the company because:

• Provides a sense of direction
• Helps develop the right goals and targets
• Ensure that all staff focus on meeting goals

1) Define mission statement
2) Set goals and objectives
3) Design business portfolio
4) Develop Marketing strategy

Question 2

(1) Define mission statement

Answer 2

Must address:

• What is the nature of our business?
• Who are our customers?
• What is the purpose of our existence?

1) Market oriented (to satisfy customer’s needs and wants)
2) Motivating
3) Emphasise company’s strengths
4) Do not define in terms of sales and profit

Mission - what that company wants to achieve now
Vision - what the company wants to achieve in the future

Question 3

(2) Set goals and objectives

Answer 3

• To support the broad mission statement
• Specific, quantifiable, time frame
  
  • Instead of “to cut costs”, “to reduce costs by 10% by end of FY2021”

Question 4

(3) Design business portfolio & (4) Develop Marketing strategy

Answer 4

-Is the collection of businesses and products that make up the company
- Marketing Mix (Set of tactical marketing tools that the company blends to produce the response it wants in the target market)

Question 5

Product/Market Expansion Grid

Answer 5

…………………………….|Existing products | New products
Existing markets |Market penetration | Product development
New markets |Market development | Diversification

Question 6

Market penetration

Answer 6

• Increases sales of sales of existing products to existing markets without changing the product
• How to increase sales?
  
  • By offering promotions (e.g. McDonald’s offering 1 for 1 deals)
  • Make product more accessible to customers (e.g. Mc delivery)

Question 7

Market development

Answer 7

• Identify and develop new markets for existing products
  
  • sell existing products to new markets (e.g. Starbucks expanding into international markets)

Question 8

Product development

Answer 8

• Offer modified or new products to existing markets
  
  • E.g. 5G smartphone

Question 9

Diversification

Answer 9

Start up or acquire businesses outside the company’s existing products and markets