Marketing Chapter 2 Assignment

Marketing Chapter 2 Assignment Words: 1113

Strategic Planning It is the process of developing and maintaining a strategic fit between the organization’s goal and capabilities and its changing marketing opportunities. Steps in Strategic Planning Defining a Market-Oriented Mission Mission Statement A statement of the organization’s purpose-what it wants to accomplish in the larger environment. Market-oriented mission statement Defines the business in terms of satisfying basic customer needs. Companywide Strategic Planning CompanyProduct-Oriented DefinitionMarket-Oriented Definition Amazon. omWe sell books, videos, CDs, toys, consumer electronics and other products onlineWe make the Internet buying experience fast, easy, and enjoyable??? we’re the place where you can find and discover anything you want to buy online DisneyWe run theme parksWe create fantasies???a place where dreams come true and America still works the way it’s supposed to NikeWe sell athletic shoes and apparelWe bring inspiration and innovation to every athlete* in the world (* if you have a body, you are an athlete) Setting Company Objectives and Goals ???Business objectives ?Build profitable customer relationships Invest in research ?Improve profits ???Marketing objectives ?Increase market share ?Create local partnerships ?Increase promotion Designing the business portfolio Business Portfolio The collection of businesses and products that make up the company. Portfolio Analysis The process by which management evaluates the products and businesses making up the company. Analyzing the Current Business Portfolio 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 1. Identify key businesses (strategic business units, or SBUs) that make up the company 2. Assess the attractiveness of its various SBUs 3. Decide how much support each SBU deserves Growth-share Matrix A portfolio-planning method that evaluates a company’s strategic business units in terms of their market growth into and relative market share. SBU’s are classified as stars, cash cows, question marks and dogs. Stars Stars are high-growth, high-share business or products. They often need heavy investment to finance their rapid growth.

Eventually their growth will slow down and, they will turn into cash cows. Cash Cows Cash Cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment. Question marks Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it Management needs to think hard about which question marks it should try to build into stars and which should be phased out.

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Dogs Dogs are low-growth, low-share business and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash. Problems with Matrix Approaches ?Difficulty in defining SBUs and measuring market share and growth ? Time consuming ?Expensive ?Focus on current businesses, not future planning Developing Strategies for Growth and Downsizing Product/market expansion grid A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification.

The Product/market expansion grid Market Penetration A strategy for company growth by increasing sales of current products to current market segments without changing the product. Market Development A strategy for company growth by identifying and developing new market segments for current company products. Product Development A strategy for company growth by offering modified or new products to current market segments. Divesrsification A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets. Downsizing

Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy. Planning Marketing: Partnering to Build Customer Relationships Value Chain The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products. Value-delivery 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 system. Marketing Strategy and the Marketing Mix

Customer-Driven Marketing Strategy Marketing strategy The marketing logic by which the business units hope achieve its marketing strategy. Market Segmentation Dividing a market into distinct group of buyers who have a distinct needs, characteristics, or behavior and who might require separate products or marketing programs. Customer-Centered Marketing Strategy Market Segment A group of customers who respond in a similar way to a given set of marketing efforts. Market targeting The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Positioning Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. Differentation Actually differentiating the market offering to create superior customer value. Developing an Integrated Marketing Mix 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. The four P’s of the marketing mix Product means the good and services combination the company offers to the target market.

Price is the amount of money customers have to pay to obtain the product. Place includes company activities that make the product available to target consumers. Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Managing the Marketing Effort Marketing Analysis SWOT Analysis an overall evaluation of the company’s strengths (S),weaknesses (W),opportunities(O), and threats (T). Marketing Planning Marketing Implementation The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.

Market Planning???Parts of a Marketing Plan ?Executive summary ?Marketing situation ?Threats and opportunities ?Objective and issues ?Marketing strategy ?Action programs ?Budgets ?Controls Marketing Control The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved. Marketing Audit A comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance.

Marketing Department Organization ???Functional organization ???Geographic organization ???Product management organization ???Market or customer management Measuring and Managing Return on Marketing Investment Return on marketing investment (Marketing ROI) Is the net return from a marketing investment divided by the costs of the marketing investment, Marketing ROI provides a measurement of the profits generated by investments in marketing activities Principles of Marketing Summary of Chapter 2 Partnering to Build a Customer Relationship In Principles of Marketing

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