Morgan Bendele - Marketing Chapter 2 Notes

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Feb 20, 2024

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Marketing Chapter 2 Notes & Activity Strategic Planning: the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities How do we plan to have the best product for people to buy Strategic Business Units (SBUs): a subgroup of a single business or collection of related businesses within the larger organization A distinct mission and a specific target market Control over its resources Its own competitors A single business or a collection of related businesses Plans independent of the other SBUs in the total organization. Strategic Alternatives: Several tools are available that a company, or SBU, can use to manage the strategic direction of its portfolio of businesses. Things that you can use to create a portfolio for a business Models used for marketing Ansoff’s Strategic Opportunity Matrix- Market penetration: a marketing strategy that tries to increase market share among existing customers Market Development: a marketing strategy that entails attracting new customers to existing products Product Development: a marketing strategy that entails the creation of new products for present markets Diversification: a strategy of increasing sales by introducing new products into new markets Innovation Matrix- Core Innovation: Represented by the yellow circle these decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands Adjacent Innovation: Represented by the orange arc these decisions are designed to take company strengths into new markets. This space uses existing abilities in new ways
Transformational Innovation: Represented by the red arc in these decisions result in brand-new markets, products, and often new businesses. Portfolio Matrix- a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate Stars: in the portfolio matrix, a business unit that is a fast-growing market leader Cash cows: in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share Problem children: in the portfolio matrix, a business unit that shows rapid growth but poor profit margins Also called a question mark Dogs: in the portfolio matrix, a business unit that has low growth potential and a small market share Four basic strategies for allocate future resources- Build: if an organization has an SBU that it believes has the potential to be a star (probably a problem child at present), building would be an appropriate goal. Hold: If an SBU is a very successful cash cow, a key goal would surely be to hold or preserve market share so that the organization can take advantage of the very positive cash flow. Harvest: This strategy is appropriate for all SBUs except those classified as stars. The basic goal is to increase the short- term cash return without too much concern for the long-run impact. Divest: Getting rid of SBUs with low shares of low-growth markets is often appropriate. Problem children and dogs are most suitable for this strategy. Marketing Plan - Video Planning: the process of anticipating future events and determining strategies to achieve organizational objectives in the future Marketing Planning: designing activities relating to marketing objectives and the changing marketing environment Marketing Plan: a written document that acts as a guidebook of marketing activities for the marketing manager Elements of a Marketing Plan- Mission statement: a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions Marketing myopia: defining a business in terms of goods and services rather than in terms of the benefits customers seek SWOT Analysis- identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) S - internal strengths W - weaknesses
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