Lesson 3 Flashcards
are people or groups affected by a business, like customers, employees, suppliers, and the community. Businesses should meet their basic needs. The first step is to identify who they
are and understand what they expect.
Stakeholders
Companies create teams with members from different departments to handle important tasks and stay competitive. However, departments often focus on their own goals instead of the company’s overall success.
Processes
Businesses focus on their main strengths and hire outside help for less important tasks. To run smoothly, they need staff, materials, equipment, and information.
Resources
Companies change their structure, rules, and work culture to adapt to business changes. While rules and structures can be updated easily, changing a company’s culture is the hardest part. Successful hospitality businesses work hard to build and maintain a strong service culture
Organization
- the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its
changing marketing opportunities.
Strategic Planning
- A guide that gives everyone connected to the
company a common goal, allowing them to work both independently and together.
Corporate Mission Statement
- The company’s core priorities and standards for behavior.
Corporate Values
explains a company’s purpose and what it aims to achieve in the
world.
mission statement
To achieve its mission, a company must create clear goals for different management levels. Marketing strategies and programs should support these objectives,
B.Setting Company Objectives and Goals
business should fOCUS on meeting customer needs rather than just selling products. Instead of seeing itself as a product maker, it should view itself as a company that
solves customer problems.
C.Designing the Business Portfolio
-MARKET EXPANSION GRID OFFERS A USEFUL FRAMEWORK FOR EXAMINING
GROWTH.
ANSOFF PRODUCT
- Increasing sales of current products in
existing markets
Market Penetration
- Finding new markets for existing
products.
Market Development
- Creating new or improved products
for current markets
Product Development
A business expands into new areas
when good opportunities exist outside its current operations.
Diversification Growth
Adding new products that
are related in technology or marketing but may attract
different customers.
Concentric Diversification Strategy.
Introducing new products that appeal to existing customers but are not related to current
products.
Horizontal Diversification Strategy.
Expanding into completely new industries that have no connection to the company’s current products or markets.
Conglomerate Diversification Strategy.
Businesses can grow by expanding within their industry through different types of integration,
Integrative Growth
different types of integration:
Backward Integration
Forward lntegration
Horizontal Integration.
When a firm finds brands or businesses that are unprofitable or that no longer fit its overall strategy. It must carefully prune, harvest, or divest them,
Downsizing
All key departments-such as marketing, finance, accounting,
purchasing, operations, IT, and human resources–must collaborate to achieve the company’s strategic goals
Partnership with other company departments
Competition is no longer just between individual companies;
it now happens between entire value delivery networks
formed by these companies.
Partnership with others in the marketing systems.
is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who may need
separate products or marketing strategies.
Market Segmentation
can be grouped based on geography, demographics, lifestyle, and behavior.
Consumers
means assessing each segment’s potential and choosing the ones to serve. Businesses should focus on segments where they can create and maintain the most customer value profitably.
Market targeting
Once a company selects its target market segments, it must decide how to make its products stand out and what position it wants to hold in each segment.
Market Differentiation and Positioning.
is how consumers perceive it compared to competing products.
product’s position
is a set of controllable tools that a company uses to influence customer demand and
achieve its desired response in the target market.
marketing mix
The goods-and-services combination the company offers to the target market.
Product
The amount of money customers must pay to obtain the product.
Price
Company activities that make the product available to target
customers.
Place
Activities that communicate the merits of the product and
persuade target customers to buy it.
Promotion
four marketing management functions:
`Analysis
Planning
“Implementation
Control
Managing the marketing function begins with a complete analysis of
the company’s situation. The marketer should conduct a SWOT analysis, by which it evaluates
the company’s overall Strengths ($), Weaknesses (W), Opportunities (0), and Threats (T).
A.Marketing Analysis.
A.Marketing Analysis.
Internal Environment Analysis
External Environment Analysis
Unfavorable external factors or trends that may present challenges to performance.
Threats
. Favorable factors or trends in the external environment that the company may be able to exploit to its advantage.
Opportunities
Internal limitations and negative situational factors that may interfere with the company’s performance
Weaknesses
Internal capabilities, resources and positive situational factors that may help the company to serve its customers and achieve its objectives.
Strengths
- an area of need in which a company can perform profitably.
Marketing Opportunity
After the business unit has defined its mission and conducted as SWOT analysis, it can proceed to develop specific objectives and goals
A.Goal Formulation.
, The business focuses on one or more narrow market segments rather than going
after a large market.
Focus
. The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market.
Differentiation
, The real key is for the firm to achieve the lowest cost among
those competitors adopting a similar differentiation or focus strategy.
Overall_Cost Leadership,
. All companies need to track results and monitor new developments in the environment. The environment will change. When it does, the company will need to review its strategies or objectives.
D.Feedback and Control
a strategy, the firm must have the required resource
including employees with necessary skills to carry out that strategy.
implementation
involves deciding on marketing strategies that will help the company attain its overall strategic objectives. A detailed marketing plan is needed for each business, product, or brand.
Marketing planning
