marketing lecture 2 (strategy) Flashcards
dangerous strategies
immutable and frozen strategies (because you cannot use the same strategies at all times)
maintaining the company’s competitiveness is not easy because
- the market keeps changing
- the customers keep changing
every organizations must develop strategies
to help focus and direct its efforts to accomplish its goals
what is a strategy
an organization’s long term course of actions to deliver a unique customer experience while achieving its goals (it is needed because an organization has limited human, financial, technological, and other resources available to produce and market its offerings)
large organizations’ levels
- board of directors
- corporate level
- strategic business unit level
- functional level (departments) :
- information systems
- research and development
- finance
- marketing
- manufacturing and operations
- human resources
corporate level
is a level in an organization where top management directs overall strategy for the entire organization
strategic business unit (SBU) level
- it is a level in a multimarket/multiproduct firm where the managers manage portofolio or groups of businesses
- SBU is a division, subsidiary, or unit in an organization that markets a set of related offerings to a clearly defined target market
- at this level, the managers creates a spesific strategic direction for the businesses to exploit value-creating opportunities
- for a single business company like ben n jerrys, the corporate and sbu level may merge
functional level
- a level in an organization where group of specialists actually creates value for the organization
- at this level, the strategic direction becomes more spesific and focused
to set a strategic direction, an organization needs to answer 2 questions
- where are we now?
- where do we want to go?
where are we now? need to identify your
- competencies
- skills, technologies, and resources that distinguishes us from other organizations and can provide customer value
- is it a competitive advantage? unique strengths relative to competitors that can bring superior returns? - customers
- who are they and what are their needs?
- different groups with different preferences
- clear focus on customers - competitors
- in this marketplace, the distinction between competitors are increasingly blurred- industry perspective and market perspective
where do we want to go?
knowing where the business is at right now, enables the organization to create a clear direction and allocate resources to move in that direction
either use a BCG matrix or diversification analysis
we need to conduct business portofolio analysis using BCG matrix :
- to know which SBUs generates cash and which one requires cash to fund the organization’s growth opportunities
BCG business portofolio analysis is used because
resources are always limited, so companies need to know how to best use its resources and make the best investments
bcg matrix
- stars (high market growth and market shares) –> you are well established and have fantastic opportunities
- question marks (high market growth and low market shares) –> lots of opportunities that no one knows what to do with. these opportunities need serious thought on if increased investment is warranted
- cash cows (low market growth and high market shares) –> you are well established but the market isn’t growing and there aren’t a lot of opportunities
- dogs (low market shares and low market growth) –> your market presence is weak so it will be hard to make profit
a company cannot rely on one product as
it will grow old
marketing has what responsibility
the main responsibility on achieving profitable growth for the company
