MKT 311 Chapter Notes - Chapter 2: Root Mean Square, Chief Operating Officer, Swot Analysis
Marketing 311 !
Chapter 2!
2.1 Explain company-wide strategic planning and its four steps!
-Strategic planning is the process of developing and maintaining strategic fit between the
organizations goals and capabilities and its changing market opportunities!
-Annual and long range plans deal with the company’s current business and how to keep
them going !
-Strategic plan involves adapting the firm to take advantage of opportunities in constantly
changing environment !
-Strategic planning steps: define the company mission, setting the company objectives and
goals, designing the business portfolio, planning marketing and other functional strategies !
-Defining a Market Oriented Mission: What is our business? Who is the customer? What do
consumers value? What should our business be?!
-Mission statement is the statement of the organizations purpose - what it wants to
accomplish in the larger environment !
-An “invisible hand”!
-Mission statements should be market oriented!
-Mission statements should be meaningful and specific yet motivating !
-Setting Company Objectives and Goals
-Sales can be increased by improving customer engagement and raising the company’s
share of a market !
-These goals become the company’s current marketing objective !
- A broad mission is translated into a set of short-term and specific objectives and marketing
plans!
2.2 Discuss how to design business portfolios and develop growth strategies !
-Business portfolio: collection of businesses and products that make up the company !
-Business portfolio planing 2 steps: !
-1. The company must analyze its current business portfolio and determine which
businesses should receive more, less, or no investment. !
-2. Must shape the future portfolio by developing strategies for growth and downsizing !
-Analyzing the Current Business Portfolio
-SBU’s - Strategic business units are key businesses that make up the company !
-SBU are evaluated on their attractiveness and strength in the industry !
-Boston Consulting Group approach: !
-Stars: High growth, high share businesses or products, need heavy investment to
finance rapid growth, eventually turn into cash cows!
-Cash cows: Low growth, high share. Established and successful. Need less investment
to hold on their market share !
-Question marks: Low share, high growth. Require a lot of cash. Management has to
think hard about which question marks it should try to build into stars !
-Dogs: low growth, low share businesses. No promise of large sources of cash but can
be sustained !
-Developing Strategies for Growth and Downsizing
-Marketing has the main responsibility for achieving profitable growth for the company !
-Marketing needs to identify, evaluate, and select market opportunities and lay down
strategies for capturing them !
-Product/ market expansion grid: Market penetration, product development, market
development, diversification !
-Penetration: make changes in existing products in existing markets!
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
2. 1 explain company-wide strategic planning and its four steps. Strategic planning is the process of developing and maintaining strategic t between the organizations goals and capabilities and its changing market opportunities. Annual and long range plans deal with the company"s current business and how to keep them going. Strategic plan involves adapting the rm to take advantage of opportunities in constantly changing environment. Strategic planning steps: de ne the company mission, setting the company objectives and goals, designing the business portfolio, planning marketing and other functional strategies. Mission statement is the statement of the organizations purpose - what it wants to accomplish in the larger environment. Mission statements should be meaningful and speci c yet motivating. Sales can be increased by improving customer engagement and raising the company"s share of a market. These goals become the company"s current marketing objective. A broad mission is translated into a set of short-term and speci c objectives and marketing plans.
