Chapter 1 Notes
1. DEFINING THE ORGANIZATION’S BUSINESS, MISSION, AND GOALS a. Business Deﬁnition: an organization should deﬁne a business by the type of customers it wishes to serve, the particular needs of those customer groups it wishes to satisfy, and the means or technology by which the organization will satisfy these customer needs. b. Business Mission: a mission underscores the scope of an organization’s operations apparent in its business deﬁnition and reﬂects management’s vision of what the organization seeks to do. c. Business Goals: Goals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a speciﬁc time frame.
2. Converting Environmental Opportunities into Organizational Opportunities a. What might we do? Environmental opportunity.
* Unmet or changing consumer needs.
* Unsatisﬁed buyer groups.
* New means or technology for delivering value to prospective buyers. b. What do we do best? Distinctive competency
* Describes an organization’s unique strengths or qualities, including skills, technologies, or resources that distinguish it from other organizations. * In order for any of an organization’s strengths or qualities to be considered truly distinctive and a source of competitive advantage, two criteria must be satisﬁed: i. Competitors cannot imitate it
ii. Provide customers with superior value
c. What must we do? Success requirements
* Basic tasks that an organization must perform in a market or industry to compete successfully.
3. SWOT Analysis: Why do we do it? The Purpose of it!
* A SWOT (Strength, Weakness, Opportunity & Threats) is a useful analysis that helps companies develop effective strategic planning for both online and offline. This exercise takes into account not only your own business, but your competitors and the current business environment. Completing a SWOT analysis every 6 months can help identify ways to maximizing your strengths, minimize weaknesses/threats and uncover new opportunities. * SWOT analysis is a formal framework for identifying and framing organizational growth opportunities. * Internal Capabilities consist of strength and weaknesses in Management, Marketing, Manufacturing, R&D, Finance and Offerings. * External Capabilities consist of opportunities and threats in Economic, Competition, Consumer trends, Technology, Legal/Regulatory and Industry/Market structure. * Strength: What the organization is good at doing or some characteristic that gives it an important capability. * Weakness: What an organization lacks or does poorly relative to other organizations. * Opportunity: Developments or conditions in the environment that have favorable implications for the organization. * Threats: Developments or conditions in the environment that have favorable implications for the organization. 4. Pick a company and do a PRODUCT-MARKET STRATEGY:
* A product-market strategy involves selecting specific markets and profitably reaching them through an integrated program called a marketing mix. *
* Market Penetration Strategy: A market-penetration strategy dictates that an organization seeks to gain greater dominance in a market in which it already has an offering (existing offerings → existing markets). * Market Penetration Strategy Involves:
i. Increasing present buyers’ usage or consumption rates of the offering ii. Attracting buyers of competing offerings by lowering prices and expanded distribution. iii. Stimulating product trial among potential customers
* Marketing managers should consider a number of factors before adopting a penetration strategy: i. Examine market growth. A penetration strategy is usually more effective in a growth market. ii. Assess competitive reaction.
iii. Analyze the capacity of the market to increase usage or consumption rates and the availability of new buyers. * Market...
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