Ch. 2 – Company and Marketing Strategy: Partnering to Build Customer

Relationships

- strategic planning = process of dvlping & maintaining strategic fit b/t org’s goals & capabilities & its

changing marketing opps

 corporate level: define overall purpose & mission, then objectives

 steps:

- mission statement = statement of org’s purpose, what is wants to accomplish in larger enviro

 clear mission statement guides ppl in org

 should be market oriented, defined in terms of satisfying basic customers

- portfolio analysis = process where management evaluates prods & businesses that make up company

 identify strategic business units (SBUs), key business that make up company

- Boston Consulting Group (BCG) growth-share matrix = portfolio-planning method that evaluates

company’s SBUs in terms of tis market growth rate & relative market share

 stars = high-growth, high-share businesses/prods

 often need heavy investments to finance rapid growth

 eventually, their growth will slow down & will turn into cash cows

 cash cows = low-growth, high-share business/prods

 established & successful SBUs need less investment to hold their market share

 produce a lot of cash that company uses to pay bills & support other SBUs that need

 may generate enough cash to maintain themselves but do not promise to be large sources

of cash

find more resources at oneclass.com

find more resources at oneclass.com