lectures 3+4 Flashcards
Cross functional planning
Method to incorporate all relevant functional departments in overall planning process
Strategic planning
Matches resources and capabilities to opportunities for long term survival and growth
Business portfolio strategies
Strives to build a group of different products or brands owned by the organization and characterized by dif. income-generating/growth capabilities
- Business portfolio: collection of businesses and products that make up the company
- SBU’s – strategic business units – key businesses that make up the company
- Portfolio analysis : management evaluates the businesses and products that make up a company
BCG Market Share Matrix
STARS - HIGH mkt share, HIGH mkt growth
- need heavy investments; will eventually turn into cash cows
Cash Cows - HIGH mkt share, LOW mkt growth
- not much investment needed; finances company’s operations and stars/question marks
Dogs - LOW mkt share, LOW mkt growth
- may generate enough cash to sustain themselves but not large sources of cash
Question Marks- LOW mkt share, HIGH mkt growth
- require a lot of cash to hold their share
Business objectives:
- Must be consistent with organization’s overall objectives
- May include: overall revenue, market share, profitability, ROI , productivity
Core competencies
Benefits that deliver a “differential benefit”, aka benefits that set yourself apart from competition
Ansoff Growth Strategies Matrix
- Existing products, existing markets: market penetration
- Existing products, new markets: market development
- New products, new markets: diversification
- New products, existing markets: product development
3 Key Planning Steps
- Know your environment - industry analysis, environmental analysis, competitive analysis
- Set marketing objectives in quantifiable terms - units, $, market shares
- Develop - select target market, marketing mix
Marketing environment
Actors and forces outside marketing that affect marketing’s ability to build and maintain successful relationships with target customers
Micro environment
- Within organization
- Intermediaries: retailers, brokers, wholesalers
- Others: customers, competitors
- Company culture, ethics, risk taking, dress code
Competition for limited company resources
3 levels:
- Discretionary income –> after fixed expenses
- Product competition
- Brand competition
External factors/macroenvironment
- Economic
- Competitive
- Socio cultural
- Demographics
- Political
- Tech advancements/applications
Macro environment competition: four competitive situations
- Pure competition: many sellers, homogeneous products
- Monopolistic competition: many sellers, different products, relative ease of entry
- Oligopoly: few sellers, identical or differentiated products
- Monopoly: one seller, no close substitutes, complete barriers to entry
B2C Products
Convenience products (necessities, frequently purchased)
Shopping products (more consideration required), i.e. shoes clothing
Specialty products (significant time/resources) i.e. car, house
B2B Products
Equipment
Maintenance/repair/operating
Raw materials
Component parts
Services (i.e. cleaning)
