Marketing Chapter 2 Notes Essay

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Marketing Chapter 2
Company-Wide Strategic Planning: Defining Marketing’s Role
Strategic Planning- The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Mission Statement- A statement of the organization’s purpose- what it wants to accomplish in the larger environment. Mission statements should be meaningful and specific yet motivating, and should be customer-focused. Ex. General Mills – “We nourish lives by making them healthier, easier and richer” instead of we make consumer food products.
Designing the Business Portfolio
Business Portfolio- The collection of businesses and products that make up the company. Business Portfolio Planning, involves two steps: First the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. Second, it must shape the future portfolio by developing strategies for growth and downsizing.
Portfolio Analysis- The process by which management evaluates the products and businesses that make up the company. First step is to find key businesses that make up the company called strategic business units (SBUs). Most standard portfolio analysis methods evaluate SBUs on two important dimensions: The attractiveness of the SBU’s market or industry and the strength of the SBU’s position in that market or industry.
(Boston Consulting Group Approach) Growth-Share Matrix- A portfolio-planning method that evaluates a company’s SBUs in terms of its market growth rate and relative market share.
4 types of SBUs Stars- High-growth, high-share businesses or products Cash Cows- Low-growth, high-share businesses or products Question Marks- High-growth markets, low-share businesses or products Dogs- Low-growth, low-share businesses or products
Developing Strategies for Growth and Downsizing
Product/market expansion grid- A portfolio-planning tool identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market Penetration- Company growth by increasing sales of current products to current market segments without changing the product.
Market Development- Company growth by identifying and developing new market segments for current company products.
Product Development- Company growth by offering modified or new products to current market segments.
Diversification- Company growth through starting up or acquiring businesses outside the company’s current products and markets.
Planning Marketing: Partnering to Build Customer Relationships
Value Chain- The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Value Delivery Network- The network…