MKT 301 Week 2 2 Mission Statement o By understanding its core values an organization can take steps to define its mission a statement of the organization s function in society that often identifies its customers markets products and technologies o Should be clear concise meaningful inspirational and long term o It can provide guidance resolving controversial issues e g Spotify BCG Management Tool o To make critical marketing decisions o Data driven approach helps direct both investment in new products divestment in others and potential reinvigoration of brands as necessary o Products must receive financial investment to transition from a QUESTION MARK to a STAR o follow the recommended strategy of a Question Mark Star Cash Cow Dog to help decide which products to invest in which ones to divest which ones to cancel and how to best reinvest profits o question mark low market share and high market growth represents the products containing low market shares in a high growth market But question mark is in the grid s upper right side because it usually grows rapidly but requires vast quantities of capital from the organization o stars high market share and high market growth goods in high growth sectors that represents a large portion of the market are called stars and can be invested in more So that they will also have a large market share These goods possess the potential of being industry leaders o dogs low market share and low market growth is the small growth goods with poor market share Usually we called these materials as waste Money gets attached to these products but they don t make enough profit to justify the investment o cash cows high market share and low market growth those are products which drive your company revenue Goods in low growth markets but with which the company has a fairly strong market share and so the company will milk the cash cow as long as possible Market Product Strategies o Diversification analysis Helps a firm search for growth opportunities from among current and new markets as well as current and new products Ex Ben and Jerry s Ice Cream Current products current market o Market penetration Selling more Ben Jerry s super premium ice cream to Americas Selling a new product such as children s clothing under the brand to Americans new products current market o Product development current products new market o market development selling brand s super premium ice cream to Brazilians for the first time new products new markets o diversification selling a new product such as children s clothing under the brand to Brazilians for the first time overall diversification strategy includes market penetration market development product development strategy and diversification strategy stay in countries we were already in and sell more market penetration sell our existing products to a new country market development develop a new product line with using the existing companies technology to research and develop products which is classic product development strategy developing new product lines in a new market we chose against this plan as we did not have the brand equity diversification strategy SWOT analysis o An acronym describing an organization s appraisal of its internal Strengths and Weaknesses and its External Opportunities and Threats S strengths build on strengths W weaknesses identity and correct O opportunities exploit when you can grow T threats pivot when you can avoid direct hits
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