Lectures 4 & 5
Popular in Marketing
verified elite notetaker
Popular in Business, management
This 3 page Class Notes was uploaded by Alex on Friday February 5, 2016. The Class Notes belongs to 301 at University at Buffalo taught by Dr. Dick in Spring 2016. Since its upload, it has received 112 views. For similar materials see Marketing in Business, management at University at Buffalo.
Reviews for Lectures 4 & 5
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/05/16
MGM – Lectures 4 & 5 Marketing & Corporate Strategy Continued: o Corporate Goals: must be specific & measurable Sales Revenue Profit Return on Investment Quality Social Responsibility o Setting Corp. Goals: Relative Market Share (RMS) – Firm’s raw market share divided by the raw market share of a firm’s largest competitor RMS > 1, RMS is the highest/one of the highest in market RMS < 1, fast growing market, does not create profit immediately (?-products) Star products are often still not profitable, but they produce & learn more from competitors so cost of production is less Dog Products are in a slow market Cash Cow products are slow in growth market with highest market share & low production costs Cash cow invests in all 3 (?, star, & dog products), which is known as a success sequence RMS ≥ 10% = fast growth market o Focus on market growth rate instead of market size because it is more dynamic & future oriented When market power increases, production costs decrease & entry barriers increase When you have the highest market share, you have more power (deters competition) o Experience – just because you make more doesn’t mean you get cost savings Scares competition & reduces costs while making more profit (downward sloped curve) o Core Competencies – capabilities resulting from personnel, resources, or functional units that determine the means of achieving sustainable competitive advantage and marketplace success Sustainable Competitive Advantage – unique strength from consumer’s perspective relative to competitors (quality, service, time, cost, etc.) o SWOT: Strengths, Weaknesses, Opportunities, & Threats of an organization Helps to determine where the business is now and where it is going o Marketing Strategy Formulation: Planning, Implementation, & Control STP: Segmentation, Targeting, & Positioning Segmentation – identify all relevant segments if the market Targeting – choose 1 or more of the segments to concentrate on Positioning – position the products in the minds of the consumer Setting Goals: Sales Revenue Profit Market Share Return on Investment is important to stockholders o Larger market share has greatest influence on ROI Costs go down discourages competition If market is lousy, so is market share The faster a company moves along the cost curve, the better of o In the short-run they give up profit, but in the long-run they will make profit o Product Growth Strategies: Market Penetration – same product & customers, but try to sell more Market Development – same product with new customers Product Development same customer, different product Diversification – new product & new markets o Budgeting: must be affordable, percentage of sales, optimized, with an objective and task that is competitive Promotion is necessary to drive sales up Take a % & put it towards next year’s promotions/advertising What you do v. what you need to do Share of Marketing Effort – appropriate market share with budget Spend more to make more in order to grow To maintain just balance the budget 1 ½ Rule – amount of market share growth, take market share % X 1.5
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'