1. Business Planning
    • is an ongoing process of decision making that guides the firm both in short term and the long term
    • Planning identifies and builds on firm's strength, and helps managers make decisions in changing business environment
  2. marketing plan
    a document that describes the marketing environment, outlines, the marketing objectives and strategies, and identifies how the company will implement and control the strategies imbedded in the plan. (Guides the entire organization)
  3. business plan
    a plan that includes the decisions that guide the entire organization
  4. Codes of Business Ethics
    Rules of conduct for an organization based on basic values that guide the firm's behavior
  5. code of ethics
    written standards of behavior to which everyone in the organization must subscribe
  6. 3 Levels of Business Planning
    • Strategic
    • Functional
    • Operational
  7. Strategic Planning
    • the managerial decision process that matches the firm's resources and capabilities to its market opportunities for long term growth
    • 1. Define the mission
    • 2. Evaluate the internal and external environment (SWAT) - situational analysis
    • 3. Set organizational or SBU objectives
    • 4. Establish the business portfolio (if applicable)
    • 5. Develop growth strategies
  8. Step 1: mission statement
    a formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
  9. Step 2: Evaluate the internal and external environment situational analysis
    an assessment of a firm's internal and external environments
  10. Step 2: Evaluate the internal and external internal environment
    the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
  11. Step 2: Evaluate the Internal and External
    external environment
    • the uncontrollable elements outside an organization that may affect its performance either positively or negatively
    • firm cant directly control these external factors, so management must respond to the through its planning process
  12. Step 2: Evaluate the internal and external environment
    internal strengths and weaknesses often reside in the firm's...
    employees-the firms human and intellectual capital
  13. Step 3: Set Organizational or SBU objectives
    • each unit will have its own objectives relevant to its operations
    • effective-> objectives need to be specific, measurable, attainable, and sustainable
    • objectives may relate to revenue and sales, profitability, the firm's standing in the market, return on investment, productivity, product development....
  14. Step 4: Establish Business Portfolio
    Business Portfolio
    the group of different products or brands owned by an organization and characterized by different income generating and growth capabilities
  15. Step 4: Establish Business Portfolio
    Portfolio Analysis
    a management tool for evaluating a firm's business mix and assessing the potential of an organizaton's strategic business unit
  16. BCG growth market share matrix
    • a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.
    • Stars
    • Cash Cows
    • Question marks
    • Dogs
  17. BCG growth market
    • dominant market share in high growth markets
    • generate large revenues, but they also require large amounts of funding to keep up with production and promotion demands
    • growth potential-> maximize market share in the face of increasing competition
  18. BCG growth market
    Cash Cows
    • dominant market share in a low growth potential market
    • high market share that firm can sustain with minimal funding
  19. BCG growth market
    Question Marks
    • also know as problem children- low market shares in fast growth markets
    • suggests that firm has failed to compete successfully
  20. BCG growth market
    • small share of slow growth market
    • offer specialized products in limited markets that are not likely to grow quickly
  21. Step 5: Develop Growth Strategies
    • Market Penetration Strategies
    • Market Development Strategies
    • Product Development Strategies
    • Diversification Strategies
  22. Market Penetration Strategies
    Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in serve markets.
  23. Market Development Strategies
    Growth strategies that introduce existing products to new markets
  24. Product Development Strategies
    Growth strategies that focus on selling new products in existing markets
  25. Diversification Strategies
    Growth strategies the emphasize both new products and new markets
  26. Marketing Planning
    • 1: Perform a Situation Analysis
    • 2. Set market Objectives
    • 3. Develop Marketing Strategies
    • 4. Implement and Control the Marketing Plan
  27. MP Step 1: Perform a Situation Analysis
    • conduct analysis of the marketing environment.
    • Build on the company's SWOT analysis by searching out information about the environment that specifically affects the marketing plan
  28. MP Step 2: Set Marketing Objectives
    Business objectives guide the entire firm's operations while marketing objectives state what the marketing function must accomplish if the firm is ultimately to achieve these overall business objectives
  29. MP Step 3: Develop Marketing Strategies
    • Select a Target Market: number of consumers it believes are willing and able to pay for its products and decides if it is able to to create a sustainable competitive advantage in the marketplace vs competitors
    • Develop Marketing Mix Strategies: how marketing will accomplish its objectives in the firm's target markets by using product, price, promotion, place
  30. MP Step 4: Implement and Control the Marketing Plan
    • to monitor process of the marketing plan:
    • 1. measure actual performance
    • 2. compare this performance to the established marketing objectives or strategies
    • 3. making adjustments to the objectives or strategies on the basis of this analysis
  31. MP Step 4:
    Return on marketing investment (ROMI)
    quantifying just how an investment in marketing has an impact on the firm's success financially and otherwise
  32. MP Step 4:
    Action Plans
    Create a Time Line (Gantt charts or PERT charts)
    Set a Budget
    Decide on Measurements and Controls
    Action Plans: Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. "marketing programs'
  33. Operational Planning
    plans that focus on the day to day execution of the marketing plan. Include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks
  34. corporate culture
    the set values, norms, and beliefs that influence the behavior of everyone in the organization
Card Set
Chapter 2