Introduction to Marketing Chapter 2

Introduction to Marketing Chapter 2 - Introduction to...

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Introduction to Marketing Lecture Notes Chapter 2 : Linking Marketing and Corporate Strategies Learning Objectives : you should be able to: Define and explain strategic planning. Describe the three levels of strategy planning in an organization. Describe the Strategic Marketing Process works. Describe and apply 2 strategic planning approaches for evaluation of business opportunities, namely; the Product/Market Opportunity Matrix and the BCG matrix. I. Levels in Organizations and How Marketing Links to Them A strategy is a plan of action to achieve a goal. An organization normally has three levels of plans o Corporate Level – Strategic Business Plan done by top management sets the overall direction of the firm by developing mission statements, organizational goals/objectives and overall company strategies. Has a long term orientation and involves all functional areas of the organization. o Strategic Business Unit (SBU) Level – Each SBU is a self-contained division, product line or product department in an organization Each SBU has the following attributes: A specific target market Its own senior marketing executive Control over its resources Its own marketing strategy Clear-cut competitors Distinct competitive (differential advantage) o Functional Level – Each functional area within an organization such as Finance, Marketing, Human Resources etc does its own planning.
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The relationship between Strategic Business Plan and Strategic Marketing Plan. strategic business planning gives overall direction to the whole company and all the functional areas as a whole. It gives the management a better understanding of the target market, the marketing mix and the external variables that influence the firm as a whole. It is a hierarchical process – moving from the company wide business plan to the marketing specifics of the marketing plan. It ensures that the organization goals are clearly set so that the functional departments such as marketing’s goals are consistent with the organizational goals. This encourages all the functional areas to coordinate their efforts. Strategic planning forces the firm to examine its internal strengths and weaknesses and evaluate the external opportunities and threats. This enables the firm to outline and consider all the actions it can take.
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Introduction to Marketing Chapter 2 - Introduction to...

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