Professional Documents
Culture Documents
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Encouraging management to think ahead systematically Helping the company to anticipate and respond quickly to environmental changes and sudden developments
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The mission statement is the organizations purpose, what it wants to accomplish in the larger environment
Mission statements guide the development of objectives and goals. Objectives are developed at each level in the organization hierarchy. Strategies are developed to accomplish these objectives. Market-oriented mission statement defines the business in terms of satisfying basic customer needs
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The business portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses Company division Product line within a division Single product or brand
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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SBU Life-Cycle
Build into Stars or phase out Very heavy investment needed if to build share
Cash Cows
Low
Low growth, high share
Established, successful Produce cash
Dogs
Low mkt. growth & share
Low profit potential
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Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning
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Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
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Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the companys current products and markets
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the companys overall strategy
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Planning Marketing
Partnering to Build Customer Relationships
Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firms products
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Planning Marketing
Partnering to Build Customer Relationships
Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
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Marketing strategy is the marketing logic by which the business unit hopes to achieve its marketing objectives Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior 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
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Market targeting is the process of evaluating each market segments attractiveness and selecting one or more segments to enter
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Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
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Marketing mix is the set of controllable tactical marketing toolsproduct, price, place, and promotionthat the firm blends to produce the response it wants in the target market
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Threats are unfavorable factors or trends that may present challenges to performance
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Action programs
Budgets
Controls
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Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Controlling is the measurement and evaluation of results and the taking of corrective action as needed
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