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or the organization’s overall game plan, has a longer planning horizon (typically three to five years) than marketing planning and is performed at the corporate and business levels of the organization.
A) Corporate strategy – takes place at the highest levels of the organization and seeks to answer questions such as “What businesses should we be in”.
B) Business strategy – attempts to achieve and maintain competitive advantages in specific product market domains. Example: One of Coca Cola’s holdings is sprite. The sprite brand includes the product market domains of Sprite Zero, Diet Sprite, etc. |
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| Has a shorter planning horizon (typically one year) and is performed at the marketing level or product or product line level of the organization. |
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Involves specifying detail that pertain to the organization’s activities for a certain period of time.
Ex. The scheduled dates for a radio or television campaign for the 3rd quarter would be included in a tactical plan. |
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Is a guideline for the organization’s decision making for both the short and long run and provides direction to the strategic planning and marketing processes.
- It is the most important element in strategic planning. |
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| Strategic Business units (SBUs) |
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Facilitate planning and have a clear market focus, an identifiable set of competitors, independent management teams, and SBU specific operational goals.
Ex. SBU at PepsiCo could be all of the Frito-Lay brands at the corporate level. |
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Refers to well developed organizational objectives that are specific, measurable, achievable, relevant, and time bound.
Specific – Units to be sold, specific dollar amount of sales to be generated.
Measurable – must be stated in quantitative terms that are capable to be assessed.
Achievable – must motivating, realistic and consistent
Relevant – aim towards a specific area.
Time bound – must be reached within a specific time. |
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Refers to the resource allocation strategy for which the goal is to improve the SBU’s current position in the marketplace.
- The SBU is identified as worthy of the additional investment based on current and/or future performance potential compared to other SBUs in the product portfolio. |
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Refers to the resource allocation strategy for which the goal is to hold the SBU’s current position steady in the marketplace.
- Aim is neither to lose or gain ground in the marketplace. Maintain strategy is implemented when other SBU with more potential exist and the company wants to provide additional resources elsewhere. |
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Refers to the resource allocation strategy where the scope of the SBU is more narrowly focused on smaller, better defined target markets.
- Niching often increases an SBU’s performance by scaling back the scope of its objectives and focusing in on smaller, more well defined markets whose needs can be met more effectively and efficiently. |
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Refers to the resource allocation strategy in which an SBU is primarily used to generate resources to fund other SBUs.
- Happens when an SBU is generating enough resources, that sustaining their current position in the marketplace requires minimal investment |
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| Refers to the resource allocation strategy where investment in an SBU is discontinued. |
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Are SBUs that enjoy rapid growth but are characterized by low market shares and poor profit margins.
- pose a problem because they can become either dogs or stars. |
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| Are SBUs characterized by high market-growth rates and high market shares. |
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| are SBUs that enjoy high market share but undergo low levels of market growth. |
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| Are SBUs characterized by low market shares and low market growth rates. |
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Represents the firm’s attempt to sell more of its existing products to existing markets.
- done trough aggressive advertising and promotional activities. |
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Represents the firm’s attempt to sell more of its existing producst to new markets.
- happens when new uses are discovered for products Ex. Baking soda could be used as a deodorizer. New users are found Ex. Women start using hair lost product that previous was aimed towards men. New markets are entered. Ex. A company opens a store in a foreign country. |
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Represents the firm’s attempt to sell new products to existing markets.
Ex. Starbucks started selling deli sandwiches, music…espresso machines, etc. |
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Represents the firm’s attempt to sell new products to new markets.
Ex. If Harley Davidson suddenly decides to make cars. Honda did the same thing 25 years ago, and they are successful now. |
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Is formed by combining the supply chain with the marketing channel and represents what most practitioners are talking about when they discuss supply chain management.
Ex. – Located downstream from the manufactures is the traditional marketing channel consisting of wholesalers and retailers. Looking upstream from the manufacturer is the traditional supply chain consisting of suppliers and producers of raw materials. |
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