Strategic Planning in Business Flashcards
Strategy?
Activities –> To reach objectives.
Objectives?
Profitability ( rate of return on invested capital) Profit Growth ( % increase in profit over time)
Approaches?
(For profitability) 1. Add value 2. Lower costs ( For profit growth) 3. Sell more in existing markets 4. Expand internationally
Value creation
Differentiation : Adding value to the product such that people are willing to pay more /
Cost differentiation :
Penetration pricing / lowering price such that the customers are attracted to the rates and this creates a demand and market can be gained
Strategic Positioning
Internal operations to be supported for creation of these differentiation strategies.
- Pick viable position
- Configure internal operations accordingly.
- Have the right organization structure to execute strategy
Strategies to go global
- Global standardisation
- Transitional strategy
- localisation strategy
- International strategy
Global standardisation
low cost strategy on global scale
To be done when there are pressures for cost reduction and demands for local response are minimal (COCA COLA)
Localization
To be done when substantial differences across nations with regard to consumer taste and cost pressure not intense. (eg, KFC, also true for whisky pakcaging sizes, spice tolerance etc., veg india)
Transitional
Intense cost pressures and intense pressure for local response.. ( mcdonalds)
International
products produced for domestic markets 0 sell them internationally.
to be done when low cost pressures and low pressures for local responsiveness.
Strategic marketing management (SMM) process
Analysis ( macro env, competition, internal env)
strategy choice: orientation, direction and metod of development
implementation : tactical plans, success factors, structure org, leadership styles, corporate culture.
SMM answers
where are we now
where to go
how to go
how to ensure arrival
Where are we now
current position? likely changes in market env? key competitors? how to differenciate offerings from them? target customers? needs of target customers?? type of competitive adv? core competance?
Done through Analyse internal, micro and macro env.
Where to
strategic direction? products? target markets? competitive stance/ positioning stratgey?
Strategic fit
int strengths and weakness to external opportunities and threats and org resources and core competance to competitive position
HOW To get there
by strategic implementation. it is the translation of strategy into organization action through organizational structure ,resource planning and the management of strategic change.
Ensure arrival?
- new product success
- market retention
- cust satisfaction
- cust loyalty
- prod quality
- Acq. of new customers
- Repeat purchasing frequencey
MARKETING?
combination of selling, promoting and targeting.
OR
management process of anticipation, identifying and satisfying customer requirements with a profitability.
why marketing?
- customer focused ( segmentation)
- up to date market information
- increases awareness of competitive position
- forward planning
- integrated management approach
- increased surival rate
ow to organize for marketing
- centralized structure
- Decentralized structure
- Marketing’s role in organisation
- the purpose of the marketing information system
- the customer interface
focus of marketing orientated firm?
focuses on delivering products designed according to customer desires, needs and requirements
- product policy
- customer requirement
- channel intermediary requirements
Controlling marketing activities
- measurable
- easily communcated
- flexible
- easily understood
5, responsible - on- going
- Supported by top managment
Types of marketing
- strategic marketing
2. opeartional marketing
Strategic marketing
identify customer values.
keep firm on track
by doing right for customers
(Usually 3-5 years)
Operational Marketing
Defining how to carry out marketing activities more efficiently.
Doing the right thing.
( Role is to produce tactical marketing plans that cove the actions to be taken during a short term planning period. ( 1 year or less )
Ops v/s Strategic
Action v/s analysis oriented
Existing v/s new opportunities
stab;e v/s dynamic env
reactive v/s proactive behaviour
day to day v/s longer range managment
marketing v/s cross functional org.
Strategic lvl
- Analyse and identify customers
- also, competitors
- company offerings to be defined and provide better value to customer
- position the company’s offering the market place.
Effective Mangement
- consumer behaviour analysis( what customer needs and wants – aim to satisfy)
- Strategic analysis and choices( thorough understanding of env in which the business operates)
- Segmentation and positioning ( directed at various customer groups and involves tjuings like ho wthe company wnts to be perceived in the eyes of its market)
- Integration ( to be well coordinated to provide customers well)
