Marketing Study Guide
Chapter 2
The nature of strategic planning
Strategic planning is the managerial process of creating and maintaining a fit between the organization’s objective and recourses and the evolving market opportunities.
The goal of strategic planning is long-run profitability and growth.
Strategic business units=subsidiary. Eg. Coca Cola (parent company) and Zico.
Strategic alternatives
There are 3 most common strategic alternatives: 1. Ansoff’s opportunity matrix- matches product with markets a. Market penetration: would try to increase market share among customers. Eg. Coca Cola steels Pepsi customers. b. Market development: attracting new customers to existing product. Eg. Convince people who do not drink coca to consume Coca Cola. c. Product development: creating new product to the existing customers. Eg. Diet Cola d. Diversification: introducing new product to the new market. 2. The Boston Consulting Group Model
e. Question mark is low rapid growth with poor profit margin. This is the first time the SBU enter the market. Thus, there are a lot of uncertainty. f. Star is the market leader and growing fast. The best marketing tactic is to protect existing market share by reinvesting earning in product improvement, better distribution, more promotion, and production efficiency. Management should capture the new users as they enter the market. g. Cash cow is generate more cash than it needs to maintains its market shares. Low growth market, but the product dominant market share. Cash cow is the leader of its categories. h. Dog is low growth potential and small market shares. Most dogs eventually will leave the marketplace.
Business Mission Statement
Mission statement- a statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environment conditions. Mission statement is a blue print and
The nature of strategic planning
Strategic planning is the managerial process of creating and maintaining a fit between the organization’s objective and recourses and the evolving market opportunities.
The goal of strategic planning is long-run profitability and growth.
Strategic business units=subsidiary. Eg. Coca Cola (parent company) and Zico.
Strategic alternatives
There are 3 most common strategic alternatives: 1. Ansoff’s opportunity matrix- matches product with markets a. Market penetration: would try to increase market share among customers. Eg. Coca Cola steels Pepsi customers. b. Market development: attracting new customers to existing product. Eg. Convince people who do not drink coca to consume Coca Cola. c. Product development: creating new product to the existing customers. Eg. Diet Cola d. Diversification: introducing new product to the new market. 2. The Boston Consulting Group Model
e. Question mark is low rapid growth with poor profit margin. This is the first time the SBU enter the market. Thus, there are a lot of uncertainty. f. Star is the market leader and growing fast. The best marketing tactic is to protect existing market share by reinvesting earning in product improvement, better distribution, more promotion, and production efficiency. Management should capture the new users as they enter the market. g. Cash cow is generate more cash than it needs to maintains its market shares. Low growth market, but the product dominant market share. Cash cow is the leader of its categories. h. Dog is low growth potential and small market shares. Most dogs eventually will leave the marketplace.
Business Mission Statement
Mission statement- a statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environment conditions. Mission statement is a blue print and