Prosess of identifying and selecting and organizations objectives and deciding how the organization will acheive those objectives Show set of planned actions taken by managers to help a company meet its objectives. Written statement of why a company exists and what it plans to accomplish All parties, ranging from suppliers and amployees to stockholders and consumers, who are affected by a companies activities Special Ability of a company that competitors find extremely difficult or impossible to equal Process of dividing a company's activities into primary and support activities and identifying those that create value for customers Adapting products and their marketing strategies in each national market to suit local preferences Offering the same products using the same marketing strategy in all national markets Strategy designed to increase the scale or scope of a corporations operations strategy designed to reduce the scale or scope of a corporations businesses strategy designed to gaurd against change and used by corporations to avoid either growth or retrenchment strategy designed to mix growth, retrenchment, and stability strategies across a corporations business units low-cost leadership strategy -strategy in which a company exploits economies of scale to have the lowest cost structure of any competitor in its industry strategy in which a company designs its products to be perceived as unique by buyers throughout its industries strategy in which a company focuses on serving the needs of a narrowly defined market segment by being the low-cost leader, by differentiating its products, or both. way in which a company divides its activities among separate units and coordinates activities among those units -lines of authority that run from top management to individual employees and specify internal reporting relationships International Division Structure organizational structure that separates domestic from international business activities by creating a separate international division with its own manager International area Structure Organizational structure that organizes a company's
entire global operations into countries or geogreaphic regions Organizational structure that divides worldwide operations according to a company's product areas Organizational structure that splits the chain of command between product and area divisions. team in which the employees from a single department take on the responsibilities of their former supervisors team composed of employees who work at similar levels in different functional departments team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems Whether market segments and target markets are selected on the basis of intuition, marketing research, or a combination of the two, they are the basis for creating an effective marketing mix for any small business. Segmentation and target market decisions must be made for both onground and online customers. SegmentationMarket segmentationDividing the market into several portions that are different from each other. It involves recognizing that the market at large is not homogeneous., dividing a market into relatively homogeneous subgroups that behave much the same way in the marketplace, is the necessary precursor to selecting a target market or target markets. The extensive bases on which a company is able to segment a market are presented in Table 6.1 "Market Segmentation". The challenge is knowing which group(s) to select. Many small business owners have a good intuitive sense of the segments that make sense for the business, and they choose to go with that intuition in devising their marketing strategy. However, that intuition may not be precise or current enough to be of the most help in planning a marketing strategy. Marketing research can be of help here, even to the smallest of businesses. Marketing research can help the small business identify and refine the segments that offer the greatest opportunities. Part of that process will be to identify segments that meet the requirements of measurabilityThe ease with which a segment can be identified and how easily the size of the segment be estimated., substantialityThe segment is large and profitable enough to justify an investment., stabilityWhether consumer preferences are stable over time., accessibilityBeing able to communicate with and reach the segment., actionabilityWhether a small business is capable of designing an effective marketing program that can serve the chosen market segment., and differential responseThe extent to which market segments are easily distinguishable from each other and respond differently to company marketing strategies..Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 175–76. Meeting these requirements will increase the chances for successful segmentation.
Once multiple segments have been identified, it is necessary to select a target market or target markets. If only a single segment has been identified, it becomes the target market. Target MarketThe selection of a target marketOne or more segments that have been chosen as the focus for business operations. or target markets will be based on the segments that have been identified as having the greatest potential for the business. (In Chapter 6 "Marketing Basics", a target market refers to one or more segments that have been chosen as the focus for business operations.) Only some of the people in the marketplace will be interested in buying and/or using a company’s product or service, and no company has the resources to be all things to all people. Resources are always finite, but this will especially be the case for the small business, so all marketing efforts should be directed as precisely as possible. Selecting the target market should be guided by several considerations:Susan MaGee, “How to Identify a Target Market and Prepare a Customer Profile,” accessed January 24, 2012, http://edwardlowe.org/erc/?ercID=6378; Adapted from “3 Reasons to Choose a Target Market,” Morningstar Marketing Coach, December 16, 2008, accessed December 1, 2011, www.morningstarmultimedia.com/3-reasons-to-choose-a-target-market.
Choosing the right target market is a critical part of the marketing strategy of a small business. The target market should be the best match for a company’s products and services, thus helping to maximize the efficiency and effectiveness of its marketing efforts. If a small business wants to go with a niche marketA small, more narrowly defined market that is not being served well or at all by mainstream product or service marketers., the same considerations apply. A niche market is a small, more narrowly defined market that is not being served well or at all by mainstream product or service marketers. The great advantage of pursuing a niche market is that you are likely to be alone there: “other small businesses may not be aware of your particular niche market, and large businesses won’t want to bother with it.”Susan Ward, “Niche Market,” About.com, accessed December 1, 2011, sbinfocanada.about.com/cs/marketing/g/nichemarket.htm. Ideally, a small business marketing to a niche market will be the only one doing so. Niches are very important to small businesses that want to sell pricey chocolates (see, for example, www.cocoadolce.com/about.php). They focus on niches such as weddings, seasonal offerings, and specialty items. They also sell online in order to reach a broader market. Key Takeaways
Exercises
What are the 5 types of business level strategies?Type of Business Level Strategy – Top 5 Types: Porter's Generic, Cost-Leadership, Differentiation, Focus and Tactical Strategies.
What is focused lowA focused low-cost strategy — concentrating on a narrow buyer segment (or market niche) and outcompeting rivals by having lower costs than rivals and thus being able to serve niche members at a lower price.
What is a focused differentiation strategy?What is a focused differentiation strategy? A focused differentiation strategy requires the business to offer unique features to a product or service, and it must fulfill the requirements of a niche or narrow market.
What is focus strategy?A focus strategy is a method of developing, marketing and selling products to a niche market, which could be a type of consumer, product line or geographical area. A focus strategy would center on the expansion of marketing tactics for your company while aiming to establish a new relationship with your target audience.
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What strategy involves a company working on serving the needs of a narrowly defined market segment?
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