ADM 2320 Lecture Notes - Lecture 2: Strategic Planning, Pro Forma, Marketing Mix

41 views6 pages

lemonimpala446

9 Dec 2017

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

CHAPTER 2

Levels of Strategic Planning in Corporations

• Strategic planning in most organizations occurs on at least two levels, the

corporate level and the functional level

o Corporate Level

▪ Corporate level planning is done by the company's top

management and focuses on the overall direction of the entire

company

▪ Corporate level planning focuses on the long-term direction of the

company, which is updated regularly to respond to changes in the

business environment

o Functional Level

▪ The marketing function develops marketing plans for the

company's various products, brands, and markets. These plans

could take the form of annual plans or three- to five-year plans

▪ The marketing function may also be involved in both corporate-

level and SBU-level planning because of its focus on creating

value for customers and the company.

• An SBU is a division of the company that can be managed somewhat

independently from other divisions since it markets a specific set of products to a

clearly defined group of customers.

• Marketing planning process is a set of steps a marketer goes through to develop a

marketing plan.

find more resources at oneclass.com

Unlock document

This preview shows pages 1-2 of the document.
Unlock all 6 pages and 3 million more documents.

Already have an account? Log in

The Marketing Plan

• A marketing plan is a written document composed of an analysis of the current

marketing situation, opportunities and threats for the firm, marketing objectives

and strategy specified in terms of the four Ps, action programs, and projected or

pro forma income (and other financial) statements.

• The three major phases of the marketing plan are planning, implementation, and

control.

o The planning phase is where marketing executives and other top managers

define the mission and objectives of the business, and evaluate the

situation by assessing how various players, both inside and outside the

organization, affect the firm's potential for success.

o The Implementation phase is where marketing managers identify and

evaluate different opportunities by engaging in a process known as

segmentation, targeting, and positioning. They then develop and

implement the marketing mix by using the four Ps.

o The control phase is the part of the strategic marketing planning process

when managers evaluate the performance of the marketing strategy and

take any necessary corrective actions

Step 1: Defining the Business Mission and Objectives

• A mission statement a broad description of a firm's objectives and the scope of

activities it plans to undertake; attempts to answer two main questions: What type

of business is it? and What does it need to do to accomplish its goals and

objectives?

• Another key goal or objective often embedded in a mission statement is how the

firm is building a sustainable competitive advantage.

find more resources at oneclass.com

Unlock document

This preview shows pages 1-2 of the document.
Unlock all 6 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Levels of strategic planning in corporations: strategic planning in most organizations occurs on at least two levels, the. Step 5: evaluate performance by using marketing metrics: a metric is a measuring system that quantifies a trend, dynamic, or characteristic. Product development: a product development strategy is a growth strategy that offers a new product or service to a firm"s current target market. Market development: a market development strategy is a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international or segments not currently served by the firm. Diversification: a diversification strategy is a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently served. In a related diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. In an unrelated diversification, the new business lacks any common elements with the present business.

Related Questions

QUESTION 1

_____ refer to the forces of change whose direction and sometimes timing can be predicted.

		Uncertainties
		Trends
		Occurrences
		Scenarios
		Forecasts

2 points

QUESTION 2

Management institutes, certification agencies, and headhunting firms are examples of specialized intermediaries for:

		financial markets.
		markets for managerial talent.
		markets for products.
		auction markets.
		labor market.

2 points

QUESTION 3

_____ involves analyzing markets for their potential size, accessibility, cost of operations, and buyer needs and practices to aid the company in deciding whether to invest in entering that market.

		Search retargeting
		Unique selling proposition
		Rebranding
		First-mover advantage
		Market due diligence

2 points

QUESTION 4

Consumer safari refers to the initiatives taken by Unilever executives to spend a day with consumers in their homes to:

		understand how they use products.
		convince them to use more Unilever products.
		train them to make multiple use of their products.
		estimate how many products they use.
		help them set up cottage industries for their products.

2 points

QUESTION 5

_____ refer to the forces of change whose direction and pace is largely unknown.

		Uncertainties
		Trends
		Occurrences
		Scenarios
		Forecasts

2 points

QUESTION 6

_____ are straight-line, one-factor projections from present to future.

		Estimates
		Opportunities
		Scenarios
		Forecasts
		Plans

2 points

QUESTION 7

The United States is separated from Nigeria by 5,840 miles and the Atlantic Ocean. According to the CAGE framework this is a case of:

		emotional distance.
		economic distance.
		cultural distance.
		geographic distance.
		administrative distance.

2 points

QUESTION 8

The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:

		emotional distance.
		economic distance.
		cultural distance.
		geographic distance.
		administrative distance.

2 points

QUESTION 9

_____ occurs when a function is taken out of one's country of residence to be performed in another country, generally at a lower cost.

		Open sourcing
		Offshoring
		Exporting
		Importing
		Licensing

2 points

QUESTION 10

Which of the following is true of acquisitions?

		The acquiring company will be eligible for any financial help from the company whose shares it is trying to acquire.
		It affords the firm maximum control and has the most potential to provide above-average returns.
		The acquiring company enters into an agreement with the target business to pursue a set of agreed-upon goals while remaining independent organizations.
		The acquiring firm avoids the expense of establishing operations in the new country.
		The acquiring company gains control of another firm by purchasing its stock.

2 points

QUESTION 11

Which of the following statements holds true for the ISO 9001:2008 certification?

		Organizations which supply raw materials are barred from applying for the ISO 9001:2008 certification.
		Companies which meet the criteria of a minimum financial turnover can apply for the ISO 9001:2008 certification.
		The ISO 9001:2008 certification is a mark that a company's products and services have met quality standards.
		Companies that had achieved ISO 9001:2000 certification were exempt from being recertified to meet ISO 9001:2008 standards.
		ISO 9001:2008 certification specifically focuses on the environment.

2 points

QUESTION 12

_____ refers to buying goods and services from foreign sources and bringing them back into the home country.

		Open sourcing
		Offshoring
		Exporting
		Importing
		Farmshoring

2 points

QUESTION 13

The _____ is the contract between the exporter and the carrier, authorizing the carrier to transport the goods to the buyer's destination.

		letter of credit
		bill of lading
		customs invoice
		export declaration
		license

2 points

QUESTION 14

_____ is the document by which the exporter tells the importer to pay a specified amount at a specified time.

		Letter of credit
		Bill of lading
		Customs invoice
		Insurance certificate
		Bill of exchange

2 points

QUESTION 15

Which of the following can also function as collateral against loans?

		Certificate of origin
		Export declaration
		License
		Customs invoice
		Bill of lading

2 points

QUESTION 16

_____ refers to the financing granted against collateral, which can be the imported/exported goods.

		Angel funding
		Purchase Order Financing
		Secured financing
		Overdraft
		Cash advance

2 points

QUESTION 17

Which of the following is a contractual mode of entry into a foreign market?

		Greenfield ventures
		Licensing
		Joint ventures
		Acquisition
		Merger

2 points

QUESTION 18

_____ refers to an organization that assists foreign companies in exporting their products to Japan by providing free-market entry information and business-partner matching as well as some subsidies.

		Japan Bank for International Cooperation
		Japan External Trade Organization
		Development Bank of Japan
		Master Trust Bank of Japan
		Japan Post Bank Company

2 points

QUESTION 19

Which of the following statements holds true for a nonentity joint venture?

		In a nonentity joint venture, the partner with the smaller capital investment loses control over the joint venture after a period of two months.
		In a nonentity joint venture, each of the partners contributes capital and resources in exchange for an equity stake and share in any resulting profits.
		In a nonentity joint venture, the control of the joint venture is in the hands of the party which makes the larger capital investment.
		In a nonentity joint venture, there is no contribution of capital to form a new entity.
		In a nonentity joint venture the benefit gained is in the form of collective profits rather than individual profits.

2 points

QUESTION 20

The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.

		export declaration
		license
		letter of credit
		bill of lading
		customs invoice

2 points

QUESTION 21

_____ refers to the constellation of business, corporate, and international strategy elements, which managers must consider when making decisions.

		Five Forces Analysis
		Cluster model
		Strategy diamond
		Porter's four corners model
		Strategic grouping

2 points

QUESTION 22

Strategy implementation is the process of:

		deciding which strategies to follow in order to diversify.
		performing all the activities necessary to do what has been planned.
		deciding the businesses in which an organization would compete.
		addressing the issue of the kind of strategies an organization would follow.
		devising plans to add value to the existing line of business.

2 points

QUESTION 23

The _____ function requires monitoring performance so that it meets the performance standards established by the organization.

		controlling
		leading
		planning
		organizing
		job design

2 points

QUESTION 24

_____ refers to the sequence of activities that include the various steps of the supply chain as well as additional activities, such as marketing, sales, and service.

		Value chain
		Differentiation
		Cost leadership
		Scope
		Homesourcing

2 points

QUESTION 25

Outsourcing involves:

		diversifying into a new business.
		the sale of products or services in one country that are sourced in another country.
		the company delegating an entire process to the outsource vendor.
		guiding the choice of markets that a firm competes in.
		performing a service by staff from within an organization and also by an external service provider.

2 points

QUESTION 26

The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores. This is an example of:

		differentiation.
		increasing vertical scope.
		diversification.
		offshoring.
		increasing geographic scope.

2 points

QUESTION 27

_____, which are a part of the SWOT analysis, assess the external attractive factors that represent the reason for a business to exist and prosper.

		Strengths
		Weaknesses
		Threats
		Opportunities
		Strategies

2 points

QUESTION 28

_____ refers to the number of different topographical markets in which an organization participates.

		Geographic scope
		Value chain
		Differentiation
		Cost leadership
		Offshoring

2 points

QUESTION 29

The first step in the planning process is:

		establishing organizational objectives.
		formulating and ensuring the effective implementation of plans.
		the SWOT analysis.
		identifying multiple ways of achieving organizational objectives.
		monitoring the progress and evaluating the success of the plans.

2 points

QUESTION 30

In Holland, KFC makes a potato-and-onion croquette, while in France it sells pastries alongside chicken. KFC:

		has centralized its business processes to enable it to provide the services mentioned.
		assumes that consumer needs and desires vary by country.
		assumes that the world is flat.
		sells the same products in the same way in every country.
		is following the cost-leadership strategy.

2 points

QUESTION 31

An automobile giant headquartered in the United States sells high-end bikes across the world. It wants to enter an emerging market. Customers in the market cannot afford the types of accessories used in the bikes. Thus the regional branch of the organization makes an autonomous decision to remove the accessories and to offer a toned-down version of the bikes to compete in the emerging market. This decision is accepted by the headquarters on the principle that the man on the ground is the best judge of local conditions. The above serves as an example of a(n):

		decentralized organizational structure.
		reverse engineering.
		centralized organizational structure.
		reverse innovation.
		open sourcing.

2 points

QUESTION 32

Nike products are manufactured in factories in countries such as China, Vietnam, Indonesia, and Mexico. Wholesalers, retailers, agents, and brokers are intermediaries who help in bringing the products to the consumer. These intermediaries bring the products from the factories to the consumers. They serve as an example of:

		product branding.
		market positioning.
		market segmentation.
		channel of distribution.
		social marketing.

2 points

QUESTION 33

Which of the following statements holds true for a global brand?

		It refers to the brand name of a product that has worldwide recognition.
		It refers to the marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category.
		It refers to products that make the world less flat because of lack of recognition across countries.
		It refers to the product that is distributed nationally under a brand name owned by the producer or distributor.
		It refers to the changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

2 points

QUESTION 34

An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of:

		open-sourcing.
		multisourcing.
		sole-sourcing.
		home sourcing.
		outsourcing.

2 points

QUESTION 35

Which of the following holds true for product adaptation?

		It refers to the company strategy of modifying an existing product in a way that makes it better fit local needs.
		It refers to the total composite of products offered by a particular organization.
		It refers to the strategy of taking the company's current products and selling them in other countries without making changes to the product.
		It refers to the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors.
		It refers to the strategy of creating an entirely new product for a given local market.

2 points

QUESTION 36

In marketing, market segmentation refers to the:

		process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle.
		combination of the four Ps of marketing that can be customized for different countries.
		commerce areas where because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country.
		commerce areas where vendors purposely deceive buyers by altering products and then selling them as branded products at a bargain cost.
		set of expectations, memories, stories and relationships that-taken together-account for a consumer's decision to choose one product or service over another.

2 points

QUESTION 37

In marketing, which of the following holds true for counterfeit markets?

		It refers to the process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle.
		It refers to the trade of goods and services that are illegal in themselves and/or distributed through illegal channels.
		It refers to the commerce areas where, because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country.
		It refers to the commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost.
		It refers to the secretive, unregulated (though often technically legal) trading in commodity futures.

2 points

QUESTION 38

_____ refers to buying raw materials, components, or services from one supplier exclusively, rather than buying from two or more suppliers.

		Open-sourcing
		Multisourcing
		Sole-sourcing
		Home-sourcing
		Outsourcing

2 points

QUESTION 39

_____ refers to a situation which means that there is no more stock of the company's product.

		Stock of record
		Stock-check
		Safety stock
		Stock call
		Stock-out

2 points

QUESTION 40

Which of the following statements holds true for the indirect channel of distribution?

		It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
		It refers to the combination of the four Ps of marketing that can be customized for different countries.
		It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer.
		It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain.
		It refers to the channel of distribution where the company sells its products to the consumers in other countries via the internet without using local retailers.

ADM 2320 Lecture Notes - Lecture 2: Strategic Planning, Pro Forma, Marketing Mix

Document Summary

Get access

Related Documents

ADM 2320 Lecture Notes - Lecture 2: Corporate Branding, Swot Analysis, Corporate Identity

ADM 2320 Lecture Notes - Lecture 2: Trailing Edge, Marketing Myopia, Crisis Management

ADM 2320 Lecture Notes - Lecture 3: North American Free Trade Agreement, Freshco, Computer Data Storage

Related Questions