BUS 343 Lecture Notes - Customer Retention, Marketing Effectiveness, Marketing Mix
17 Jan 2018
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Saturday, October 15, 2016
Chapter 2 Notes
Company & Marketing Strategy: Partnering to Build Customer
Relationships
Company Wide Strategic Planning: Defining Marketing’s Role
strategic planning - process of developing and maintaining a strategic fit between the
org. goals and capabilities and its changing marketing opp.
-how to adapt the firm to take adv. of opp. in the constantly changing env.
Defining a Market-Oriented Mission
mission statement - a statement of the org’s purpose- what it wants to accomplish in the
larger env.
-should be market oriented
-defined in terms of satisfying customer needs
-emphasize company strength
Setting Company Objectives and Goals
Company needs to mission —> detailed supporting obj. for each level of management
Designing the Business Portfolio
business portfolio - the collection of businesses and products that make up the
company
-should fit company strength and weaknesses to opp. in the env.
1. Company must analyze its current business portfolio and determine which
businesses should receive more, less, or no investment
!1
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Saturday, October 15, 2016
2. Must shape future portfolio by developing strategies for growth and downsizing
Analyzing the Current Business Portfolio
portfolio analysis - the process by which management evaluates the products and
businesses the make up the company
strategic business units (SBU’s) - can be company division, product line, single
product/brand
2 important dimensions:
1. attractiveness of SBU in market/industry
2. strength of SBU’s position in that market/industry
The Boston Consulting Group Approach
Growth-share matrix - a portfolio-planning method that evaluates a company’s strategic
SBU in terms of its market growth rate and relative market share
stars - high growth, high share businesses or products (heavy investments to finance
rapid growth)
Cash cows - low growth, high share businesses/products (less investment to hold
market share, produces a lot of cash)
Question marks - low-share business units in high-growth markets (require lots of cash)
Dogs - low-growth, low share SBU and products (do not promise to be large sources of
cash)
!2
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find more resources at oneclass.com
Saturday, October 15, 2016
circles represent company’s 10 current SBU
Problems with Matrix
-difficult, time consuming, costly
-difficult to define SBU + measure market share + growth
-provides little advice for future planning
-today’s strategic planning have been decentralized
Developing Strategies for Growth and Downsizing
-should not make growth an objective
-***manage profitable growth —> marketing
-Marketing: identify, evaluate, select market opp. and est. strategies for capturing them
product-market expansion grid - a portfolio-planning tool for identifying company growth
opp. through market penetration, market development, product development, or
diversification
market penetration - a strategy for company growth by increasing sales of current
products to current market segments without changing the product (more sales to
current cust. w/o changing product)
e.g. build more stores, improve advertising, prices, services, design
market development - a strategy for company growth by identifying and developing new
market segments for current company products
!3
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Company & marketing strategy: partnering to build customer. Company wide strategic planning: de ning marketing"s role strategic planning - process of developing and maintaining a strategic t between the org. goals and capabilities and its changing marketing opp. How to adapt the rm to take adv. of opp. in the constantly changing env. De ning a market-oriented mission mission statement - a statement of the org"s purpose- what it wants to accomplish in the larger env. De ned in terms of satisfying customer needs. Company needs to mission > detailed supporting obj. for each level of management. Designing the business portfolio business portfolio - the collection of businesses and products that make up the company. Should t company strength and weaknesses to opp. in the env: company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. !1: must shape future portfolio by developing strategies for growth and downsizing.
