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Dimensions That Define a Business
Customergroups
TechnologyCustomer
needs
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Product Orientation vs. Market Orientation
Company Product Market
Missouri-PacificRailroad
We run a railroad We are a people-and-goods mover
Xerox We make copyingequipment
We improve officeproductivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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The Business Unit Strategic Planning Process
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The Business Mission
Each business unit needs to define its specificmission within the broader company mission.
Good mission statements have five major characteristics
They focus on a limited number of goals They stress the companys major policies and values They take a long-term view.
They are as short, memorable, and meaningful aspossible.
.
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SWOT Analysis
Marketers need to be good at spotting opportunities.Consider the following
A company may benefit from converging industry trends and
introduce hybrid products or services that are new to the market.A company may make a buying process more convenient orefficient.A company can customize a product or service.A company can introduce a new capability.
A company may be able to offer a product at a much lower price.
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STRENGTHS AND WEAKNESSES ANALYSIS
Manufacturing13. Facilities14. Economies of scale15. Capacity16. Able, dedicated workforce17. Ability to produce on time
18. Technical manufacturing skill
Organization
19. Visionary, capable leadership20. Dedicated employees21. Entrepreneurial orientation22. Flexible or responsive
Finance11. Cost or availability of capital12. Cash flow13. Financial stability
Marketing1. Company reputation2. Market share3. Customer satisfaction4. Customer retention5. Product quality
6. Service quality7. Pricing effectiveness8. Distribution effectiveness9. Promotion effectiveness10. Sales force effectiveness
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Goal Formulation
Most business units pursue a mix of objectives,including profitability, sales growth, market shareimprovement, risk containment, innovation, andreputation.
Criteria of Objective:
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Strategic Formulation
Porters Generic Strategies
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STRATEGIC ALLIANCES
Many strategic alliances take the form of marketingalliances. These fall into four major categories
Product or Service Alliances
Promotional Alliances
Logistics Alliances
Pricing Collaborations
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Program Formulation and Implementation
Mckinsey 7s
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Feedback and Control
Once an organization fails to respond to a changedenvironment, it becomes increasingly hard torecapture its lost position.
Acompany might remain efficient yet loseeffectiveness. Peter Drucker pointed out that it ismore important to do the right thingto beeffectivethan todo things rightto be efficient.The most successful companies, however, excel at
both.