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Mark101 Exam Notes

In: Business and Management

Submitted By annabelledarcy
Words 2924
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2. BCG Matrix and Marketing Plan * Boston Consulting Group approach: a company classifies all its SBU’s according to the growth-share matrix * Growth share matrix: a portfolio planning method that evaluates a companies strategic business units (SBU’s) in terms of its market growth rate and relative market share * Market growth rate: provides a measure of market attractiveness * Relative market share: serves as a measure of company strength in the market * Four types of SBU’s: * Stars high growth, high share businesses or products * Cash cows low growth, high share businesses or products * Question marks low share business units in high growth markets * Dogs low growth, low share businesses and products

* PROBLEMS: can be difficult, time consuming and costly to implement * Management may find it difficult to define SBU’s and measure market share and growth * Focus on classifying current businesses but provide little advice for future planning * Marketing plan: deciding on marketing strategies that will help the company attain its overall strategic objectives * Marketing strategy: consists of specific strategies for target markets, positioning, the marketing mix and marketing expenditure levels – how a company intends to create value for target customer to capture value in return * Detailed marketing plan is needed for each business, product or brand * Plan begins with executive summary which reviews major assessments, goals and recommendations * Detailed SWOT analysis * States major objectives for the brand and outlines the specifics of a marketing strategy for achieving them * Action program for implementing marketing strategy & details of a supporting marketing budget * Outlines the controls that will be used to monitor progress, measure return on…...

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