Developing Marketing Strategies (Lecture #4) Flashcards
(42 cards)
What are the two general kinds of organizations?
- Business firms aiming to make profits
- -private or publicly owned (profit is the goal) - Non-profit orgs
- -usually nongovernmental org that serves its customer, profit is not the org’s goal
def. strategy
org’s long-term plan of action to deliver unique customer value/experience and to achieve its objectives
What are the levels of strategy in an org?
- Corporate-level Strategy(only board of directors are above this level)
- —top management, overall strategy for the org - Business-unit strategy
- –business unit managers, set direction for their products and markets - Function-level strategy
- –decide decisions in each apartment
What are the three important questions to consider when developing marketing strategies?
- What are the Organizational Foundations? (Why?)
- -i)core values ii)mission or vision and iii) culture - What is/are the organizational direction(s) and business goal(s) (What?)
- -i) long term ii)short term - What are the organizational strategies at different levels and different goods and services? (How?)
Describe the Parts of a SWOT Analysis (each thing and the ‘parameters’ they fit under)
- Strengths (Favourable, Internal)
- Weaknesses (Unfavourable, internal)
- Opportunities (Favourable, External)
- Threats (unfavourable, external)
What is the breakdown of marketing strategy levels (and who is in them)?
- Corporate level
- -the top management team (TMT) decides overall strategy - Strategic Business Unit (SBU) Level
- -a division of an org that markets a set of related offering to clearly defined group of customers - Functional/operational level
- -groups of specialists(departments) create value for an org
What is the progression of strategy at the 1. Strategic, 2. Managerial, and 3. Operational levels?
1: Formation of strategy
2: translation of goals into operations
3: effective implementation
what 3 things make up an org’s foundation?
core values, mission, organizational culture
def. core values
fundamental, passionate and enduring principle that guide org’s conduct overtime
def. mission
statement of the org’s function in the society, identifying its customers, markets, products, technologies, etc.
def. organizational culture
set of values, ideas, attributes, and norms of behaviour and conduct that are learned, shared practice by org members
What is an a business’ organizational direction?
clear and broad statement of the firm’s offerings and activities, view to future
Apart from a general statement’s of the org’s direction, what else is part of the org’s direction?
-goals (statements of what tasks, objectives need to be achieved)
What do an org’s goals surround (general targets)? (8)
- Profit
- Sales Revenue
- Market Share (Org’s revenues/industry’s revenues)
- unit sales per time period
- quality
- customer satisfaction
- employee welfare: good employment conditions
- social responsibility: balancing the conflicting interests of stakeholders to deliver benefits to the society
What makes goals effective?
SMART Specific Measurable Attainable Relevant Time-based
In what two ways do organizational strategies vary?
Variation by level: moving from general principle (corporate level) to in-depth details (functional level)
Variation by offering: org strategies also vary by the org’s offering (products, service, experience)
Generally describe the components of the Boston Consulting Group’s (BCG) Portfolio Analysis (names and ‘parameters’)
Stars (high relative market share, high market growth rate)
Question Marks (Low market share, high growth rate)
Cash Cows (high market share, low growth rate)
Dogs(low market share, low growth rate)
Describe ‘cash cows’ and their uses
can be used for company overhead and investment in other SBUs
-high market share, low growth rate
describe ‘stars’ and their characteristics
may not generate enough cash to support their own demanding needs
-high market share, high growth rate
describe ‘question marks’ (or problem children) and thier characteristics
-It requires a lot of cash to maintain market share, and
management must decide whether investing resources in this SBU is justified
-high growth rate, low market share
describe ‘dogs’ and their characteristics
It does not hold the promise of becoming winners for the firm
- -don’t want to be here
- low growth rate, low market share
What questions should you ask when setting strategic direction?
-Where do we want to go?
-What do we do in our current markets and with our
current product(s)?
-Do/should we introduce new product(s)?
-Do/should we go to new market(s)?
What are the four market-product strategies and their “parameters”?
- market penetration (current products, current markets)
- market development(current products, new markets)
- product development (new products, current markets)
- diversification (new products, new markets)
describe market penetration
selling more products in existing markets
