Marketing Strategy Quiz

Strategic plans - Strategic plans are made to to find a fit between an organizations goals and objectives and the organizations capabilities in reaching those goals.

A corporate strategic plan always starts with its mission - Why has the business been established. Mission can then be followed by vision - What the company wants to achieve.

A market Oriented mission statement will refer to satisfying basic customer needs whereas a Business oriented mission statement will refer to the mission of the business. Example - fevicol - To become the leader in adhesive (Business oriented) To help people in their adhesive requirements (Market oriented)

A mission statement is used in your business plans, value statements, and in overall business strategy. Thus it plays a very important role and needs to be Long term along with specificity. Example of Disney mission statement - "We create happiness by providing the finest in entertainment for people of all ages, everywhere."

A generic mission statement with no actual purpose does not provide any inspiration or guidance.

A company's mission is for the whole corporate. However it needs to be broken down separately for each SBU or each function within the corporate.

A combination of business products or different businesses is known as a business portfolio which is in turn used by the top management for analysis.

Different businesses from the same corporate can also be called as Strategic business units.

BCG matrix is based on the Growth share approach. The matrix plots market share against market growth potential to classify business units.

The BCG matrix can be used to determine which sbu's to DIVEST (not diversify). Divest meaning which businesses to do away with.

The BCG matrix is used to determine market attractiveness

Market Penetration is when a company is trying to increase sales of their product in existing market. For example - Telecom companies, FMCG.

Market Development - Finding new markets geographically or functionally for an existing product.