bmgt350 final review

bmgt350 final review - Chapter 2 I Nature of Strategic...

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Chapter 2 I. Nature of Strategic Planning a. Strategic Planning : Is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities i. Goal long-run profitability and growth b. What is a marketing plan? i. Planning: the process of anticipating future events and determining strategies to achieve organizational objectives in the future. ii. Marketing Planning: involves designing activities relating to marketing objectives and the changing marketing environment. iii. Marketing Plan: written document of marketing activities 1. Compares actual and expected performance iv. Elements of a Marketing Plan: 1. Business Mission Statement 2. Objectives 3. 4. Target Market 5. Establish Marketing Mix components 6. Implementation Evaluation Control II. Defining the Business Mission a. Mission Statement : Answers the question “what business are we in?” establishes boundaries for all decisions, objectives, and strategies b. Marketing Myopia: defining a business in terms of goods and services rather than in terms of the benefits that customers seek c. Strategic Business Unit: a subgroup of a single business or collection of related businesses w/in an organization III. Setting Marketing Plan Objectives a. Before the details of a marketing plan can be developed, objectives for the plan must be stated i. Marketing Objective: is a statement of what is to be accomplish through marketing activities 1. Objectives must be realistic, measurable, and time specific 2. Objectives must also be consistent w/ and indicate the priorities of the organization IV. Conducting a Situation Analysis a. Marketers must understand the current and potential environment that the product or service will be marketed in. i. SWOT analysis: Strengths, Weaknesses, Opportunities, Threats ii. Environmental Scanning: the collections and interpretation of info about forces, events, and relationships in the external environment that may effect the future of the organization V. Competitive Advantage a. By performing SWOT analysis firms are able to identify their Competitive Advantage i. Cost Competitive Advantage: Being the low-cost competitor in an industry while maintaining satisfactory profit margins 1. Delivers superior customer value 2. Cost can be reduced in a variety of ways a. Experience Curves cots decline at a predictable rate as experience with a product increases b. Efficient Labor c. No-Frills goods and services d. Gov’t Subsidies e. Product Design technology can offset labor costs f. Reengineering reorganizing functional departments g. Production Innovation h. New Methods of Service Delivery ii. Product/Service Differentiation Competitive Advantage: when a firm provides something unique that is valuable to buyers beyond a lower price
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1. Longer lasting competitive advantage iii. Niche Competitive Advantage: seeks to target and effectively serve a single segment of the market
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bmgt350 final review - Chapter 2 I Nature of Strategic...

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