For a business enterprise (and, with some modification, for other kinds of organizations as well), the major strategies and policies that give art overall direction to operation are likely to be in the areas of growth, finance, organization. Personnel, public relations, products or services, and marketing We will elaborate on the last two areas
Products or Services
A business exits to furnish products or services. In a very real sense, profits are merely a measure—although an important one—of host well a company serves its customers. New products or services, more than any other single factor, determine what an enterprise is or will be, The key questions in this area can be summarized as follows: • What is our business? -
• Who are our customers?
• What do our customers want?
•. How much will our customers buy and at what price? .
• Do we wish to be a product leader?
• What is our competitive advantage? -.
• Do we wish to develop our own new products?
• What advantages do we have in serving customer needs?
• How should we respond to existing and potential competition? • How far can we go in serving customer needs?
• What profits can we expect?
• What basic form should our strategy take?
Marketing strategies are designed to guide managers in getting products or services to customers and in encouraging customers to buy: Marketing ‘strategies are closely related to product strategies; they must be interrelated and mutually supportive. As a matter of fact, Peter Drucker regards the two basic business functions as innovation (e.g., the creation of new goods or services) and marketing. .A business can scarcely survive without at least one of these functions and preferably both.
The key questions that serve as guides for establishing a marketing strategy are these: • Where are our customers, and why do they buy?
• How do our customers buy?
• How is it best for us to sell?
• Do we have...