MNM3709 - STRATEGIC MARKETING
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Different strategy levels in an organisation
→ Corporate level ,Business level functional level.
Corporate strategy
→ Overall purpose and scope of the org, how value can be added.
Business strategy
→ How do we compete in this market relating to each business unit and product line.
Functional strategy
→ Supports business level strategy through marketing,HR,production, info systems and
finance functions.
Strategic business unit (SBU)
→ SBU's are distinct business units set up to handle specific product lines
Environmental variables
→ Demographic
→ International
→ Technological
→ Legal/government
→ Social and cultural
→ Economic
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Demographic environmental variables
→ Age,race,sex,economic status, level of education, income level and unemployment.
International environmental variables
→ Political disposition in countries, change in leadership or culture can increase/decrease
economic participation of the rest of the world.
Technical environmental variables
→ Speed of change.
→ Regulating change.
→ Higher budgets.
→ Product adjustments versus high research investment.
→ Limitless innovation.
Social and cultural variables
→ Replacing the traditional resume' with an in-depth personal brand.
Economic variables
→ Inflation.
→ People saving less and borrowing more.(savings ratio)
→ Increase in debt.
Legal environmental variables
→ Employment laws,international trade regulations and restrictions and any other laws
and regulations in a country.
Growth share matrix
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→ a chart used to describe SBU's based on their market growth and market share rates.
Dog
→ SBU's with Low market growth, low market share
Cash cow
→ SBU's with Low market growth,
→ High market share
Problem child
→ SBU's with High market growth, low market share
Star
→ SBU's with High market growth, high market share
Key barriers to entry
→ Economies of scale.
→ Government policies.
→ Strong brand identity.
→ high switching costs
→ limited access to distribution channels.
→ Product differentiation.
→ likelihood of retaliation from existing industry players.
Porters model
→ Shows competitive structure of an industry.
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