3-4-04 Notes (Chapter 2)
Strategic planning - The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.
Defining a market oriented mission - when management senses that the organization is drifting, it must renew its search for purpose.
Mission Statement - A statement of the organizations purpose - what it wants to accomplish in the larger enviroment.
4 Characteristics of a Mission Statement
1) realistic - It should be something that is feesable for the company
2) specific - It should inclose a sertain topic the company is willing to focus on
3) market enviroment - It should be up to date with the companies current surroundings
4) Motivating - It should motivate you
* Profits can be improved by increasing sales of reducing costs.
* After you develope your mission statement you want to set company objectives and goals which need to be in line with your mission statement.
Strategic Business Unit (SBU) - A unit of the comany that has a seperate mission and objectives and that can be planned independently from other comany businesses.
Portfolio Analysis - A tool by which management identifies and evaluates the various businesses making up the company.
*The BGC growth-share matrix
Star - High Growth & High Share
Cash Cow - Low Growth & High Share
Question Mark - High Growth & Low Share
Dog - Low Growth & Low Share
(The Star and Cash Cow are the best out of the four)
4 Steps to the Marketing Process
1) Analyzing Marketing Opportunities
2) Selecting target markets
3) Developing the marketing mix
4) Managing the marketing effort
Market Segmentation - Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior, and who might require separate products of marketing mixes.
Target Market - The preocess of evaluating each market segment's attractivness and selecting one or more segments to enter.
Market Positioning - Arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds ot target consumers.
Marketing Mix - A set of controllable tactical marketing tools - product, price, and promotion - that the firm blends to produce the response it wants in the target market.
( Diagram on Page 58)
Four P's Four C's