September 13, 2015
Basic Marketing Management
Chapter 2 Insights
* What is strategic planning in regards to market opportunities and organizational capabilities and goals? Strategic planning is defined as the process of creating and maintaining a correlation and fit between an organization’s long-term goals as well as their means to reach these goals. In addition an organization must be able to react to changing market opportunities. The steps in strategic planning are as follows: define the mission, set objectives, design business portfolio and planning strategies.
* What is a mission statement? This is a statement of the organization’s ...view middle of the document...
The company’s mission must be turned into detailed and minimized supporting objectives that are tailored to separate levels of management.
* Strategic business unit and portfolio analysis: An SBU is a separate unit of a company that has a separate mission that can be planned independently/ Portfolio analysis requires that management in these companies assess the various SBUs and continue to determine the support deserved and needed for the SBUs to complete their task.
* Market penetration – the act of making more sales to existing customers without changing the company’s products. Market development – the development and identification of new markets for current existing products. Product development – when a company offers modified or newer products to markets that the company is currently in. Diversification – when a company begins to purchase businesses that are outside of its existing products and markets.
* Marketing strategy is the reasoning that companies use in order to achieve its’ goals through profitable relationships. Market segmentation is the division of a market into separate groups in an effort to group buyer by needs, characteristics and behavior. Market targeting is the process of analyzing these market segments in order to select which of the segments should be targeted by the company.
* Marketing mix strategies consist of product, pricing, promotion and distribution.
* Managing marketing efforts consist of situation analysis, develop strategic and marketing plans, implementing plans and measure/evaluating the results.