Professional Documents
Culture Documents
Strategic Marketing
Management
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Goals
Business Definition Business Mission Business Goals 2. Identifying and Framing Organizational Growth Opportunities Converting Environmental Opportunities into Organizational Opportunities SWOT Analysis
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3. Formulating Product-Market Strategies Market-Penetration Strategy Market-Development Strategy Product-Development Strategy Diversification Strategy Selection The Marketing Mix
4. Budgeting Marketing, Financial, and Production Resources 5. Developing Reformulation and Recovery Strategies 6. Drafting a Marketing Plan 7. Marketing Ethics and Social Responsibility
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Contributing to decisions that will create and sustain a competitive advantage and affect long-term organizational performance
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implementer.
to being a maker of organization strategy.
This has prompted the emergence of strategic marketing management as a course of study and practice.
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Defining the corporate mission Establish SBUs Assigning resources to each SBUs Planning new businesses and downsizing the older ones
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Process One
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Business Definition
By defining a business from a customer or market perspective an organization is appropriately viewed as: a customer - satisfying endeavor
not
a product-producing or service delivery enterprise.
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serve
The particular needs of those customer groups it wishes to satisfy The means or technology by which the organization will satisfy the customer
needs
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Business Mission
Underscores the scope of an organizations operations apparent in its business definition Reflects managements vision of what the organization seeks to do Most statements describe: the organizations purpose customers, products/services, markets, philosophy, and technology
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Mission Statement
The reason for companys existence and its responsibilities to stakeholders The customer needs that are satisfied by the firms products or services( areas of product and market involvement) The extent of specialization within each product-market area Amount of product-market diversification desired by the management. Management's performance expectation from the company Other general guidelines for overall business strategy ( such as technologies to be used & role of R&D)
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Xerox We make copying equipment- We help improve office productivity Columbia Pictures We make movies- We market entertainment Encyclopaedia Britannica We sell encyclopaedias-We distribute information
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DHL DHL will become the acknowledged global leader in the express delivery of documents and packages. Leadership will be achieved by establishing the industry standards of excellence for quality of service and by maintaining the lowest cost position relative to our service commitment in all markets of the world. McDonalds UK mission Statement 1992-2000 To be the United Kingdoms number one favourite quick service restaurant. The company will be led by the needs of our customers and commitment to the welfare and development of our staff.Mcdonalds will provide great tasting food, backed by excellent operators and friendly service in a relaxed, safe and consistent restaurant environment. Our customers will be serviced in a caring, welcoming and professional manner. These goals will be implemented in a way which optimises the highest operational standardswith efficiency and profitability.
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SBU Characteristics
Serves a homogeneous set of markets with a limited number of related technologies Serves a unique set of product- markets Has control over the factors necessary for successful performance, such as R&D, production, marketing, and distribution Has responsibility for its own profitability
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SBU Characteristics
It is a single business or collection of related businesses that can be planned separately from the rest of the company. It has its own set of competitors. It has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit.
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Diversification
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Business Goals
Goals or objectives convert the organizations mission into tangible actions and results that are to be achieved, often within a specified time frame. Three major categories of goals:
1. Production
2. Financial 3. Marketing
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Production Goals Apply to the use of manufacturing and service capacity and to product and service quality.
Financial Goals
Marketing Goals market share marketing productivity sales volume profit customer satisfaction customer value creation
Focus on return on investment, return on sales, profit, cash flow, and shareholder wealth.
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Process Two
Organizational Growth
Opportunities
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SWOT Analysis
A formal framework for identifying and framing organizational growth opportunities
Strengths
Weaknesses
Opportunities Threats
internal
external
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SWOT Analysis
Framework for focusing attention on the fact that an organizational growth opportunity results from a good fit between an organizations INTERNAL CAPABILITIES (Strengths & Weaknesses) and
SWOT Analysis
Strength What the organization is good at doing or a characteristic that gives it an important capability
Weakness
Opportunities
Threats
Opportunity Matrix
Success Probability High
High Low
Low
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Threat Matrix
Probability of Occurrence High
High Low
Low
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Low
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Process Three
Formulating
Product-Market Strategies
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Product-Market Strategies
Existing products Existing markets New markets New products Product Development
Diversification
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Exporting
Licensing
Direct Investment
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Diversification Strategy
Development or acquisition of offerings new to the organization and introducing those offerings to publics not previously served by the organization.
Growing trend in recent years
High-risk strategy because both the offering and market served are new to the organization
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Outcome
Estimated profit of 2 million
Market-development strategy
Passive competition Estimated profit of 4 million
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Product Strategy
Communications Strategy
Customer
Price Strategy Channel Strategy
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Process Four
Budgeting Marketing,
Financial, and Production
Resources
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The Budget
A formal, quantitative expression of an organizations planning and strategy initiatives expressed in financial terms
A well-prepared budget meshes and balances an organizations Financial, Production, and Marketing Resources
Components of a Budget
1. Operating Budget
Also referred to as a pro forma Income Statement Focuses on an organizations income statement
2. Financial Budget
Focuses on the effect that the operating budget and other initiatives will have on the organizations cash position
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Process Five
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Marketing decisions reflect an organizations orientation toward the publics with which it interacts The marketplace is populated by individuals with diverse value systems
Their actions will be judged publicly by others with different values
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