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Chapter2CompanyandMarketingStrategyPartneringtoBuildCustomerRelationshipsit’sgoodandgoodforyouCompanyandMarketingStrategyCompanywideStrategicPlanning:DefiningMarketing’sRoleDesigningtheBusinessPortfolioPlanningMarketing:PartneringtoBuildCustomerRelationshipsMarketingStrategyandtheMarketingMixManagingtheMarketingEffortMeasuringandManagingReturnonMarketingInvestmentTopicOutlineCompanywideStrategicPlanningStrategicplanningistheprocessofdevelopingandmaintainingastrategicfitbetweentheorganization’sgoalsandcapabilitiesanditschangingmarketingopportunitiesStrategicPlanningCompanywideStrategicPlanningStepsinStrategicPlanningCompanywideStrategicPlanningThemissionstatementistheorganization’spurpose,whatitwantstoaccomplishinthelargerenvironmentMarket-orientedmissionstatementdefinesthebusinessintermsofsatisfyingbasiccustomerneedsDefiningaMarket-OrientedMissionWehelpyouorganizetheworld’sinformationandmakeituniversallyaccessibleanduseful.CompanywideStrategicPlanning
BusinessobjectivesBuildprofitablecustomerrelationshipsInvestinresearchImproveprofitsMarketingobjectivesIncreasemarketshareCreatelocalpartnershipsIncreasepromotionSettingCompanyObjectivesandGoalsCompanywideStrategicPlanningThebusinessportfolioisthecollectionofbusinessesandproductsthatmakeupthecompanyPortfolioanalysisisamajoractivityinstrategicplanningwherebymanagementevaluatestheproductsandbusinessesthatmakeupthecompanyDesigningtheBusinessPortfolioCompanywideStrategicPlanningStrategicbusinessunitscanbeCompanydivisionProductlinewithinadivisionSingleproductorbrandAnalyzingtheCurrentBusinessPortfolioCompanywideStrategicPlanningIdentifykeybusinesses(strategicbusinessunits,orSBUs)thatmakeupthecompanyAssesstheattractivenessofitsvariousSBUsDecidehowmuchsupporteachSBUdeservesAnalyzingtheCurrentBusinessPortfolioCompanywideStrategicPlanning:CompanywideStrategicPlanningDifficultyindefiningSBUsandmeasuringmarketshareandgrowthTimeconsumingExpensiveFocusoncurrentbusinesses,notfutureplanningProblemswithMatrixApproachesCompanywideStrategicPlanningProduct/marketexpansiongridisatoolforidentifyingcompanygrowthopportunitiesthroughmarketpenetration,marketdevelopment,productdevelopment,ordiversificationDevelopingStrategiesforGrowthandDownsizingCompanywideStrategicPlanningDevelopingStrategiesforGrowthandDownsizingProduct/MarketExpansionGridStrategiesMarketpenetrationMarketdevelopmentProductdevelopmentDiversificationCompanywideStrategicPlanningMarketpenetrationisagrowthstrategyincreasingsalestocurrentmarketsegmentswithoutchangingtheproductMarketdevelopmentisagrowthstrategythatidentifiesanddevelopsnewmarketsegmentsforcurrentproductsDevelopingStrategiesforGrowthandDownsizingCompanywideStrategicPlanningProductdevelopmentisagrowthstrategythatoffersnewormodifiedproductstoexistingmarketsegmentsDiversificationisagrowthstrategythroughstartinguporacquiringbusinessesoutsidethecompany’scurrentproductsandmarketsDevelopingStrategiesforGrowthandDownsizingCompanywideStrategicPlanningDownsizingisthereductionofthebusinessportfoliobyeliminatingproductsorbusinessunitsthatarenotprofitableorthatnolongerfitthecompany’soverallstrategyDevelopingStrategiesforGrowthandDownsizingPlanningMarketingPartneringtoBuildCustomerRelationshipsValuechainisaseriesofdepartmentsthatcarryoutvalue-creatingactivitiestodesign,produce,market,deliver,andsupportafirm’sproductsPlanningMarketing
PartneringtoBuildCustomerRelationshipsValuedeliverynetworkismadeupofthecompany,suppliers,distributors,andultimatelycustomerswhopartnerwitheachothertoimproveperformanceoftheentiresystemMarketingStrategyand
theMarketingMixMarketingStrategyandtheMarketingMixMarketsegmentationisthedivisionofamarketintodistinctgroupsofbuyerswhohavedifferentneeds,characteristics,orbehaviorandwhomightrequireseparateproductsormarketingmixesMarketsegmentisagroupofconsumerswhorespondinasimilarwaytoagivensetofmarketingeffortsCustomer-DrivenMarketingStrategyMarketingStrategyandtheMarketingMixMarkettargetingistheprocessofevaluatingeachmarketsegment’sattractivenessandselectingoneormoresegmentstoenterCustomer-CenteredMarketingStrategyMarketingStrategyandtheMarketingMixCustomer-CenteredMarketingStrategyMarketpositioningisthearrangingforaproducttooccupyaclear,distinctive,anddesirableplacerelativetocompetingproductsinthemindsofthetargetconsumerMarketingStrategyandtheMarketingMixMarketingmixisthesetofcontrollabletacticalmarketingtools—product,price,place,andpromotion—thatthefirmblendstoproducetheresponseitwantsinthetargetmarketDevelopinganIntegratedMarketingMixMarketingStrategyandtheMarketingMixDevelopinganIntegratedMarketingMixManagingtheMarketingEffortManagingtheMarketingEffortMarketingAnalysis–SWOTAnalysisManagingtheMarketingEffortMarketPlanning—PartsofaMarketingPlanExecutivesummaryMarketingsituationThreatsandopportunitiesObjectiveandissuesMarketingstrategyActionprogramsBudgetsControlsManagingtheMarketingEffortImplementingistheprocessthatturnsmarketingplansintomarketingactionstoaccomplishstrategicmarketingobjectivesSuccessfulimplementationdependsonhowwellthecompanyblendsitspeople,organizationalstructure,decisionandrewardsystem,andcompanycultureintoacohesiveactionplanthatsupportsitsstrategiesMarketingImplementationManagingtheMarketingEffortFunctionalorganizationGeographicorganizationProductmanagementorganizationMarketorcustomermanagementMarketingDepartmentOrganizationManagingtheMarketingEffortControllingisthemeasurementandevaluationofresultsandthetakingofcorrectiveactionasneededtoensuretheobjectivesareachieved.OperatingcontrolStrategiccontrolMarketingControlMeasuringandManaging
ReturnonMarketingInvestment
ReturnonMarketingInvestment(MarketingROI)Returnonmarketinginvestment(MarketingROI)isthenetreturnfromamarketinginvestmentdividedbythecostsofthemarketinginvestment.MarketingROIprovidesameasurementoftheprofitsgeneratedbyinvestmentsinmarketingactivities.Ch2ReviewWhichofthefollowingisthefirststepinthestrategicplanningprocess?SettingcompanyobjectivesandgoalsDesigningthebusinessportfolioDevelopingstrategiesforgrowthanddownsizingDefiningamarket-orientedmissionWhichofthefollowingisthefirststepinthestrategicplanningprocess?SettingcompanyobjectivesandgoalsDesigningthebusinessportfolioDevelopingstrategiesforgrowthanddownsizingDefiningamarket-orientedmissionWhatismarketpenetration?Makingmoresaleswithoutchangingtheoriginalproduct.Identifyinganddevelopingnewmarketsforcurrentproducts.Offeringmodifiedornewproductstocurrentmarkets.Startinguporbuyingbusinessesbeyondcurrentproductsandmarkets.Whatismarketpenetration?Makingmoresaleswithoutchangingtheoriginalproduct.Identifyinganddevelopingnewmarketsforcurrentproducts.Offeringmodifiedornewproductstocurrentmarkets.Startinguporbuyingbusinessesbeyondcurrentproductsandmarkets.Whichofthefollowinginvolvesevaluatingeachmarketsegment’sattractivenessandselectingoneormoresegmentstoenter?MarketsegmentationMarketpositioningMarkettargetingMarketdifferentiationWhichofthefollowinginvolvesevaluatingeachmarketsegment’sattractivenessandselectingoneormoresegmentstoenter?MarketsegmentationMarketpositioningMarkettargetingMarketdifferentiationWhichofthefollowingCsbestdescribesthe‘Place’componentofthefourPsconcept?CustomersolutionConvenienceCommunicationCustomercostWhichofthefollowingCsbestdescribesthe‘Place’componentofthefourPsconcept?CustomersolutionConvenienceCommunicationCustomercostInaSWOTanalysis,whichofthefollowingwillbecategorizedasopportunitiesforacompany?Internalcapabilities,resources,andpositivesituationalfactorsNewtechnologiesbeingdevelopedbytheresearchteamInternallimitationsandnegativesituationalfactorsFavorablefactorsortrendsintheexternalenvironmentInaSWOTanalysis,whichofthefollowingwillbecategorizedasopportunitiesforacompany?Internalcapabilities,resources,andpositivesituationalfactorsNewtechnologiesbeingdevelopedbytheresearchteamInternallimitationsandnegativesituationalfactorsFavorablefactorsortrendsintheexternalenvironmentIntheBCGgrowth-sharematrix,_____arelow-growth,high-sharebusinessesorproducts.questionmarksdogsstarscashcowsIntheBCGgrowth-sharematrix,_____arelow-growth,high-sharebusinessesorproducts.questionmarksdogsstarscashcowsWhichofthefollowingisthemostcommonformofmarketingorganization?FunctionalorganizationGeographicorganizationProductmanagementorganizationCustomermanagementorganizationWhichofthefollowingisthemostcommonformofmarketingorganization?FunctionalorganizationGeographicorganizationProductmanagementorganizationCustomermanagementorganizationWhichofthefollowinginvolvescheckingongoingperformanceagainsttheannualplanandtakingcorrectiveactionwhennecessary?StrategiccontrolTacticalcontrolOperatingcontrolFinancialcontrolWhichofthefollowinginvolvescheckingongoingperformanceagainsttheannualplanandtakingcorrectiveactionwhennecessary?StrategiccontrolTacticalcontrolOperatingcontrolFinancialcontrolTheproduct/brandmarketingplanbeginswitha(n)_____.SWOTanalysisgoalsobjectivesexecutivesummaryTheproduct/brandmarketingplanbeginswitha(n)_____.SWOTanalysisgoalsobjectivesexecutivesummary_____isastatementoftheorganization’spurposes—whatitwantstoaccomplishinthelargerenvironment.ObjectiveStrategyMarketingplanMission
_____isastatementoftheorganization’spurposes—whatitwantstoaccomplishinthelargerenvironment.ObjectiveStrategyMarketingplanMission
Projects
Pickacompanyorbrandfromwhichyoubuyfrequently.VisittheirWebsiteandfindtheportfolioofproducts/servicestheysell.PretendyouarethecompanyCEO.Categorizetheproductsintologicalgroupingsthatwillbecomeyourstrategicbusinessunits(SBUs).Usingyourbestjudgment,allocateresources,usingpercentages,notdollaramounts,toeachSBU(makesurethetotalcomesto100percent).(Objective2)GetthecurrentissueofFortunemagazine;mostcollegelibrariescarryit.Readthecoverstoryanddefinethe4Psofoneofthecompany’sproductsmentioned.Thendefinethe4Csofthesameproduct.Aretheredifferences?(Objective4)
Formstudentsintogroupsofthreetofive.EachgroupshouldreadRealMarketing2.1“McDonald’s:OnaCustomer-FocusedMission.”Eachgroupshouldthenanswerthefollowingquestionsandsharetheirfindingswiththeclass.(Objective2)DescribeMcDonalds’majorproductsthroughtheuseoftheBCGmatrix.UsingtheProduct/MarketExpansionGrid,showninFigure2.3,identifypotentialgrowthoppor
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