BUS 343 Chapter Notes - Chapter 2: Boston Consulting Group, Strategic Planning, Brand Management
23 Jan 2018
School
Department
Course
Professor
Chapter 2: Company and Marketing Strategy
Partnering to Build Customer Relationships
Company-Wide Strategic Planning: Defining Marketing’s Role
• Strategic planning:
~ developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities
- Annual and long-range plans with company’s current business
- Goes from overall purpose and mission → detailed objectives that guide the
whole company → portfolio of businesses and products best gives each other
support → develop detailed marketing and other departmental plans
- Marketing planning occurs at the business-unit, product, and market levels
1. Defining a market-oriented mission
- Mission statement: organization’s purpose
- Some companies define their missions in terms of the product or service and run
into issues when the market changes
➢ Mission statements should be market oriented
Indigo “to inspire our customers and those they care about with life-enriching
products and experiences”
- Should be meaningful, specific, and motivating
➢ Often lack workable guidelines
2. Setting Company objectives and goals
- Turn into objectives for each level of management
- FACEBOOK → Product oriented: we are a social network, market-oriented: we
connect people around the world and help them share important moments in
their lives
- Mission can be translated into a set of goals for a current period
Designing the Business Portfolio
• Business portfolio
~ collection of business and products that make up the company
- Best ones fit their strengths and weaknesses to opportunities in the environment
- Despite size of portfolio, strategic planning process is the same
1. Analyzing Current business portfolio
- Portfolio analysis
find more resources at oneclass.com
find more resources at oneclass.com
~management evaluates products and businesses that makeup company
➢ Strong resources in its more profitable businesses / drop weaker
ones
- Strategic business units (SBU)
~ company divisions, product lines, product, brand
➢ To find ways in which company may use its strengths
a. Attractiveness of SBU’s market/industry
b. Strength of SBU’s position in market or industry
• Boston Consulting Group Approach
- Are prone to change
- Must continually add products and units
- Issues
➢ Little advice for future planning
➢ Time consuming and costly
- Strategies that can be pursued for an SBU
a. BUILD share and invest
b. HOLD the SBU’s share at the current level
c. HARVEST the SBU for a long-term effect
d. DIVEST by selling or phasing it out, using other resources
• Developing Strategies for Growth and Downsizing
- To manage profitable growth
- Market expansion grid to identify growing opportunities
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Company-wide strategic planning: defining marketing"s role: strategic planning: ~ developing and maintaining a strategic fit between the organization"s goals and capabilities and its changing marketing opportunities. Annual and long-range plans with company"s current business. Goes from overall purpose and mission detailed objectives that guide the whole company portfolio of businesses and products best gives each other support develop detailed marketing and other departmental plans. Marketing planning occurs at the business-unit, product, and market levels: defining a market-oriented mission. Some companies define their missions in terms of the product or service and run into issues when the market changes. Indigo to inspire our customers and those they care about with life-enriching products and experiences . Often lack workable guidelines: setting company objectives and goals. Turn into objectives for each level of management. Facebook product oriented: we are a social network, market-oriented: we connect people around the world and help them share important moments in their lives.
