Assessing recourses and opportunities

§ Core competencies – things a firm does extremely well, which sometimes give it an advantage over its competition.

§ Competitive advantage – the result of a company’s matching a core competency to opportunities in the marketplace.

§ Market opportunity – a combination of circumstances and timing that permits an organization to take action to reach a target market.

§ Strategic windows – temporary periods of optimal fit between the key requirements of a market and a firm’s capabilities.

· Understand the components of a SWOT analysis and they relate to one another; how is it used to make strategic marketing decisions?

SWOT analysis – a tool that marketers use to assess an organization’s strengths, weaknesses, opportunities and threats.

Main goal – to convert weaknesses into strengths, threats into opportunities and then match them.

· What is marketing myopia?

Marketing myopia - Short sighted and inward looking approach to marketing that focuses on the needs of the firm instead of defining the firm and its products in terms of the customers' needs and wants.

· What are the two primary questions to be answered in a mission statement?

Mission Statement —A long-term view of what the organization wants to become

Who are our customers?

What is our core competency?

· The qualities of “good” objectives (specify a time frame, etc.)

1. Should be clearly expressed

2. Should be in written form

3. Should specify a time frame

4. Should be consistent with both business-unit strategy and corporate strategy.

· What is a strategic business unit?

Strategic Business Unit (SBU) —a division, product line, or other profit center within a parent company

· Boston Consulting Group Matrix or growth-share matrix (dogs, cash cows, etc…)—understand the four types of SBUs in this matrix; how does money or resources flow among the different types?; what is the typical path an SBU will follow through the matrix?

Market growth/ market share matrix – a strategic planning tool based on the philosophy that a product’s market growth rate and market share important in determining marketing strategy.

Stars are products with a dominant share of the market and good prospects for growth. They use more cash than generate to finance growth, add capacity, and increase market share.

Cash cows have a dominant share of the market but low prospects for growth, typically they generate more cash than required to maintain market share.

Dogs have subordinate share of the market and low prospects, these products are often found in established markets.

Questions mark sometimes called problem children, have small share of market and usually require a large amount of cash to build market share.

Дата добавления: 2015-11-16