Class Notes (859,848)
CA (520,906)
MARK (28)
MARK1020 (22)
Paul Balog (18)
Lecture

marketing 4.docx

3 Pages
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Department
Marketing
Course Code
MARK1020
Professor
Paul Balog

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Description
SETTING STRATEGIC DIRECTIONS A. A LOOK AROUND: WHERE ARE WE NOW? 1. CUSTOMERS. KNOW WHAT CUSTOMERS WANT AND HOW THEY WANT VALUE DELIVERED. STAY CLOSE TO THE CUSTOMER. 2. COMPETENCIES. AN ORGANIZATION’S SPECIAL CAPABILITIES, INCLUDING SKILLS, TECHNOLOGIES, AND RESOURSES, THAT DISTINGUISH IT FROM OTHER ORGANIZATIONS. THESE COMPETENCIES SHOULD PROVIDE A COMPETITIVE ADVANTAGE, A UNIQUE STRENGTH RELATIVE TO COMPETITORS, OFTEN BASED ON QUALITY, TIME, COST, OR INNOVATION. MANY FIRMS TODAY SEEK TO DEVELOP A COMPETENCY IN TOTAL QUALITY MANAGEMENT (TQM). QUALITY, AS USED HERE, MEANS THOSE FEATURES AND CHARACTERISTICS OF A PRODUCT THAT INFLUENCE ITS ABILITY TO SATISFY CUSTOMER NEEDS MANY FIRMS TRY TO IMPROVE THEIR QUALITY THROUGH BENCHMARKING, DISCOVERING HOW OTHERS DO SOMETHING BETTER THAN YOUR OWN FIRM SO YOU CAN IMITATE OR LEAPFROG COMPETITION. 3. COMPETITORS. ORGANIZATIONS MUST STUDY WHO THE COMPETITORS ARE AND HOW THEY ARE CHANGING. B. GROWTH STRATEGIES: WHERE DO WE WANT TO GO? TWO TECHNIQUES AID MANAGERS IN SETTING DIRECTION. THEY ARE PORTFOLIO ANALYSIS AND MARKET-PRODUCT ANALYSIS. 1. BUSINESS PORTFOLIO ANALYSIS THE BOSTON CONSULTING GROUP’S (BCG) GROWTH- SHARE MATRIX IS AN EXAMPLE OF A TECHNIQUE THAT IS USEFUL IN HELPING MARKETING EXECUTIVES MAKE RESOURCE ALLOCATION DECISIONS. IT IS DESCRIBED BELOW: THIS TECHNIQUE BREAKS A LARGE FIRM INTO A NUMBER OF DECENTRALIZED PROFIT CENTRES — CALLED STRATEGIC BUSINESS UNITS (SBU's) — IN ORDER TO SIMPLIFY THE RESOURCE ALLOCATION PROCESS. A STRATEGIC BUSINESS UNIT HAS SEVERAL DISTINCT CHARACTERISTICS. IT: a. IS A SINGLE BUSINESS THAT CAN BE PLANNED INDEPENDENTLY OF OTHER BUSINESSES. b. HAS ITS OWN COMPETITORS. c. HAS ONE MANAGER WITH PROFIT RESPONSIBILITY. INFORMATION NEEDED: THE SBUs ARE ANALYZED AS THOUGH THEY WERE A COLLECTION OF SEPARATE INVESTMENTS. THIS IS CALLED BUSINESS PORTFOLIO ANALYSIS. THE SBUs ARE POSITIONED ON A GROWTH- SHARE MATRIX. a. THE VERTICAL AXIS IS
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