notes chapt 2 - REVIEWING OBJECTIVES AND KEY TERMS In Chapter 1 we defined marketing and outlined the steps in the marketing process In this chapter we

notes chapt 2 - REVIEWING OBJECTIVES AND KEY TERMS In...

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REVIEWING OBJECTIVES AND KEY TERMS In Chapter 1 , we defined marketing and outlined the steps in the marketing process. In this chapter, we examined companywide strategic planning and marketing’s role in the organization. Then we looked more deeply into marketing strategy and the marketing mix and reviewed the major marketing management functions. So you’ve now had a pretty good overview of the fundamentals of modern marketing. OBJECTIVE 1 Explain companywide strategic planning and its four steps. Strategic planning sets the stage for the rest of the company’s planning. Marketing contributes to strategic planning, and the overall plan defines marketing’s role in the company. Strategic planning involves developing a strategy for long-run survival and growth. It consists of four steps: (1) defining the company’s mission, (2) setting objectives and goals, (3) designing a business portfolio, and (4) developing functional plans. The company’s mission should be market oriented, realistic, specific, motivating, and consistent with the market environment. The mission is then transformed into detailed supporting goals and objectives , which in turn guide decisions about the business portfolio. Then each business and product unit must develop detailed marketing plans in line with the companywide plan. OBJECTIVE 2 Discuss how to design business portfolios and develop growth strategies. Guided by the company’s mission statement and objectives, management plans its business portfolio , or the collection of businesses and products that make up the company. The firm wants to produce a business portfolio that best fits its strengths and weaknesses to opportunities in the environment. To do this, it must analyze and adjust its current business portfolio and develop growth and downsizing strategies for adjusting the future portfolio. The company might use a formal portfolio planning method. But many companies are now designing more customized portfolio planning approaches that better suit their unique situations. OBJECTIVE 3 Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. Under the strategic plan, the major functional departments—marketing, finance, accounting, purchasing, operations, information systems, human resources, and others—must work together to accomplish strategic objectives. Marketing plays a key role in the company’s strategic planning by providing a marketing concept philosophy and inputs regarding attractive market opportunities. Within individual business units, marketing designs strategies for reaching the unit’s objectives and helps to carry them out profitably. Marketers alone cannot produce superior value for customers. Marketers must practise partner relationship management , working closely with partners in other departments to form an effective value chain that serves the customer. And they must partner effectively with other companies in the marketing system to form a competitively superior
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  • Spring '15
  • Marketing, Athabasca University Strategic Plan

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