Marketing CHAPTER 2 Company and Marketing Strategy Flashcards
Strategic planning
the process of developing and
maintaining a strategic fit between the organization’s goals
and capabilities, and its changing marketing opportunities.
Put it simply:
* A strategic plan outlines your mission, vision, and high-level
goals for the next three to five years.
* You should also foresee how to measure those goals and outline
the high-level projects or initiatives you will undertake.
Defining a market-oriented mission
▪ The mission statement is the organization’s purpose, what it wants to
accomplish in the larger environment.
▪ Market-oriented mission statement defines the business in terms of
satisfying basic customer needs.
Defining the company misssion
Vision or Mission Statement?
Vision: Future inspirational statement
Examples of Vision:
✓Refresh the world. Make a difference
✓…Bringing the World Closer Together
✓To bring inspiration and innovation to every athlete* in the world
Mission: About what the company does as a business
3 Questions that help define a mission statement:
What’s our business?
Who are our customers?
What benefits do we bring them
Setting Company Objectives and Goals in business and marketing
- Business objectives
– Build profitable customer relationships
– Invest in research
– Improve profits - Marketing objectives
– Increase market share
– Create local partnerships
– Increase promotion
Designing The Business Portfolio
The business portfolio is the collection of businesses and products that make up the company.
Strategic business units can be a:
* Company division
* Product line within a division
* Single product or brand
Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.
Analyzing The Current Business Portfolio
* Identify strategic business units (S B U s)
* Assess the attractiveness of its various S B U s
* Decide how much support each S B U deserves
Mars Inc. is not only the world’s number-one candy maker; it is also a worldleading pet nutrition and health-care company
The B C G Growth-Share Matrix
Star,Cash cow,Question mark, dog
see slide 38, The terms “Cash Cow, Dog, etc..” are well-established
Limitations Boston Matrix Approach
▪ Difficulty in defining S B U s
▪ Measuring (relative) market share and growth is complex
- realistic within one type of market
▪ Focus on current businesses, not future planning
▪ So why is it quoted do often?
▪ The terms “Cash Cow, Dog, etc..” are well-established
marketing terms… you need to know what it means
Developing Strategies for Growth and Downsizing
Companies focus on the future
In order to close the “STRATEGIC GAP”
(the difference between the long term result a company will realize without changing anything to its current approach and
way of doing business and its long-term strategic objectives)
SEE SLIDE 46,47,48
4 types of strategies:
A. Intensive growth strategies
→ linked to the company’s main activity
B. Growth strategy via integration
→ linked to the company’s industry
C. Diversification growth strategy
→ linked to the company’s environment
D. Phase out or downsizing strategy
Types of diversification
▪ Introduce new activities that can satisfy the same customers
▪ Introduce new activities that have technological or commercial synergies with existing products.
▪ Introduce new activities that have limited connection with current activities.
Integrative Growth Definition:
A strategy for growth in which a firm acquires some other
element of the chain of distribution of which it is a member.
▪ Horizontal Integration
▪ Vertical Integration
o Upstream
o Downstream
Downsizing
Downsizing
Value chain def
Value chain is a series of departments that carry out value .
creating activities to design, produce, market, deliver, and
support a firm’s products.
Porter’s Value Chain
▪ It’ a business management concept developed by Michael
Porter in his book Competitive Advantage (1985).
▪ The models clusters the activities that a company performs
in order to generate value for its customers into primary
and secondary activities. It helps analyze where the
company has a competitive advantage and where it may
not.
▪ The model analyzes the different systems and activities
that generate value in the company, relating them to
customers and linking them all together to understand
which one add value or not.
Customer Value-Driven Marketing Strategy elements
Market segmentation is the division of a market into distinct
groups of buyers who have different needs, characteristics,
or behaviors and who might require separate products or
marketing mixes.
Market segment is a group of consumers who respond in a
similar way to a given set of marketing efforts.
Market targeting is the process of evaluating each market
segment’s attractiveness and selecting one or more
segments to enter.
Market positioning is the arranging for a product to occupy
a clear, distinctive, and desirable place relative to competing
products in the minds of target consumers.
Differentiation begins the positioning process.
