Week Six Flashcards
Steps in strategic planning are
1) defining the company mission
2) setting company objectives and goals
3) designing the business portfolio
4) planning marketing and other functional strategies
market-oriented mission statement
defines the business in terms of satisfying basic customer needs
business objectives include
building profitable customer relationships, investing in research and improving profits
marketing objectives include
increasing market-share, creating local partnerships, increasing promotion
the business portfolio
the business portfolio is the collection of businesses and products that make up the company
strategic business units (SBU)
can be a company devision, a product line within a division or a single product or brand
to analyse current business portfolio
1) identify key businesses that make up the company
2) assess attractiveness of its various sbus
3) decide what support each sbu deserves
BCG matrix
question mark or problem child, stars, cash cows, and dogs
GE matrix
looks at market attractiveness and company strength and assesses overall attractiveness in a 3x3 matrix
10 sources of competitive advantage
1) rep for quality
2) customer service / support
3) name recognition
4) retain good management and staff
5) low-cost production
6) financial resources
7) customer orientation
8) product line bredth
9) technical superiority
10) satisfied customers
market penetration
present products present markets
product development
new products present markets
market development
present products new markets
diversification
new and new
downsizing
is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy
value chain
includes design, produce, market, deliver, and support
marketing mix
is the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market
marketing roi
is the net return from a marketing investment divided by the costs of the marketing investment
competitor anaysis involves
1) identifying the company’s competitors
2) assessing competitors objectives, strategies, strengths and weaknesses, and reaction patterns
3) selecting which competitors to attack or avoid
best competitve strategies include
overall cost leadership, differentiation, focus, middle of the road
companies can gain leadership positions by delivering superior value to their customers in three strategies or value disciplines
1) operational excellence
2) customer intimacy
3) product leadership
market leader strategies
expand total demand by developing new users, new uses, and more usage of its product
protect current market, expand total demand, expand market-share
