ch 2 notes - Marketing 201 Chapter 2 Lecture Notes...

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Marketing 201 Chapter 2 Lecture Notes Understand the importance of strategic planning Strategic planning is the basis for all marketing strategies and decisions. These decisions affect the allocation of resources and ultimately the financial success of the company. Define strategic business units (SBUs) Each SBU should have these characteristics: a distinct mission and a specific target market; control over resources; its own competitors; a single business; plans independent from other SBUs in the organization. Each SBU has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding. Identify strategic alternatives and know a basic outline for a marketing plan Ansoff’s opportunity matrix presents four options to help management develop strategic alternatives: market penetration, market development, product development, and diversification. In selecting a strategic alternative, managers may use a portfolio matrix, which classifies strategic business units as stars, cash cows, problem children (or question marks), and dogs, depending on their present or projected growth and market share. Alternatively, the GE model suggests that companies determine strategic alternatives based on the comparisons between business position and market attractiveness. A marketing plan should define the business
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