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This 5 page Class Notes was uploaded by Claire Meler on Tuesday November 18, 2014. The Class Notes belongs to MKTG301 at Pennsylvania State University taught by Dr. Zina Taran in Fall. Since its upload, it has received 272 views. For similar materials see Intro to Marketing in Marketing at Pennsylvania State University.
Reviews for ChapterTwo-CompanyandMarketingStrategy.pdf
Almost no time left on the clock and my grade on the line. Where else would I go? Claire has the best notes period!
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Date Created: 11/18/14
Marketing 301 Chapter 2 Company and Marketing Strategy Partnering to Build Customer Relationships 0 Involves defining a clear company mission setting supporting objectives designing a sound business portfolio and coordinating functional strategies 0 Firm must adapt to constantly changing environment 0 Acts as an invisible hand that assists with organizational and financial performance Should be market oriented and defined in terms of customer needs Should be realistic specific motivating relevant to market environment based on firm s distinctive competencies and not too broad or too narrow Turned into detailed supporting objectives for each level of management Business Portfolio the collection of businesses and products that make up the company Current portfolios are analyzed for investment purposes and future portfolio is shaped by developing strategies for growth and downsizing Portfolio Analysis the process by which management evaluates the products and businesses making up the company Management first identifies key businesses making up company Strategic Business Unit SBU a unit of the company that has a separate mission and objectives and that can be planned independently from other company business Management assesses attractiveness of various SBUs and decides how much to support each GrowthShare Matrix a portfoio panning method developed by the Boston Consulting Group a leading management consulting firm that evaluates a company39s strategic business units in terms of their market growth rate and relative market share Market growth rate provides measure of market attractiveness Relative market share serves as measure of company strength in the market 0 Need heavy investment to finance rapid growth 0 Will eventually slow down and become cash cow 0 Need less investment 0 Produce a lot of cash 0 Require a lot of cash to hold their share 0 Can be built into stars or turned into dogs 0 Do not promise to be large sources of cash Can apply one of four strategies to an SBU 0 Invest more to build its share 0 Invest just enough to hold share at current level 0 Harvest SBU and milk its short term cash flow regardless of long term effect 0 Divest SBU by selling or phasing out 0 Problems with matrix 0 Difficult time consuming and costly to implement o Difficult to define SBUs and measure market share and growth 0 Provides little advice for future planning ProductMarket Expansion Grid a portfoio panning tool for identifying company growth opportunities through market penetration market development product development or diversification Downsizing Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company39s overall strategy May be necessary because market environment might change firms might have grown too fast or entered areas where it lacks experience or business units simply age and die Value Chain the series of departments that carry out vaue creating activities to design produce market deliver and support a firm s products ValueDelivery Network the network made up of the company suppliers distributors and ultimately customers who partner with each other to improve the performance of the entire s ystem Market Segmentation dividing a market into distinct groups of buyers who have distinct needs characteristics or behavior and who might require separate products or marketing mixes Consumers can be grouped based on geographic demographic psychographic and behavioral factors Market Segment a group of consumers who respond in a similar way to a given set of marketing efforts Target Marketing the process of evaluating each market segment s attractiveness and selecting one or more segments to enter Most companies enter new market by serving single segment and adding segments later on based on success Large companies eventually seek full market coverage Marketing Positioning arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers Effective positioning begins with differentiating company39s marketing offer so it gives consumers more value Marketing Mix the set of controllable tactical marketing tools product price place and promotion that the firm blends to produce the response it wants in the target market Product goodsandservices combination the company offers to target market Price amount of money customers have to pay to obtain product Place includes company activities that make product available to target consumers Promotion activities that communicate the merits of product and persuade target customers to buy it Four P s take seller39s viewpoint Four C39s take buyer39s viewpoint 0 Customer solution product 0 Customer cost price 0 Convenience place 0 Communication promotion 0 Managing market process requires four marketing managing functions analysis planning implementation and control 0 Start with complete analysis of company39s situation 0 Decide on marketing strategies that will help company attain overall strategic objectives Marketing Implementation the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives Doing things right implementation and doing the right thing strategy critical to success Functional Organization different marketing activities are headed by a functional specialist Geographical Organization used by companies that sell across the country or internationally sales and marketing people assigned to specific countries regions and districts Product Management Organization used by companies with very different products or brands product manager develops and implements complete strategy and marketing program for a specific product or branch Market or Customer Management Organization used by companies that sell one product line to many different types of markets and customers that have different needs and preferences market managers develop marketing strategies and plans for specific markets or customers 0 Large companies that produce many different products flowing into many different geographic and customer markets usually employ some combination of above forms Marketing Control the process of measuring and evaluating the results of marketing strategies and plans and taking corrective actions to ensure that objectives are achieved Operating control involves checking ongoing performance against annual plan and taking corrective action Strategic control involves looking at whether company39s basic strategies are well matched to opportunities Marketing Audit a comprehensive independent and periodic examination of a company39s environment objectives strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company39s marketing performance Covers all major areas of a business Normally conducted by an objective and experienced outside party
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