Developing Organizational Objectives and Formulating Strategies

Development goals

ObjectivesobjectivesWhat organizations want to accomplish (outcomes) in a given period of time. are what organizations want to take the final result we want to achieve in a given period of time. Besides being accomplished within a certain period, the goals must be realistic (possible) and be measurable, if possible. "To increase sales by 2 percent by the end of the year" is an example of a goal of an organization can develop. You probably already set goals for yourself that you want to achieve in a given period of time. For example, your goals may be to maintain a grade point average and work experience or an internship before graduating.

Objectives help guide and motivate employees of a company and give their points of reference for managers in evaluating the company's marketing activities. Although many organizations publish their mission statements, most for-profit companies, does not publish its objectives. Achievements at every level of organization helped PepsiCo meet its corporate objectives over the past year. PepsiCo business units (divisions) have increased the number of its facilities to grow their brands and enter new markets. PepsiCo's beverage and snack units gained market share through the development of healthier products and products that are more convenient to use.

goals of a marketing company should be consistent with the objectives of the company at other levels, such as the corporate level and business level. An example of a marketing goal of PepsiCo may be "an increase of 4 percent market share of Gatorade at the end of the year." Companies in order to analyze their different divisions or companies will be discussed later in this chapter.
Formulating Strategies

StrategiesstrategiesActions (means) taken to achieve the goals. are means to ends, or that a company will do to achieve its objectives. Successful strategies to help organizations establish and maintain a competitive advantage that competitors can not easily imitate. PepsiCo tries to sustain its competitive advantage, constantly developing new products and innovations, including the "Mega Brands", which are eighteen individual brands that generate more than $ 1 billion in sales each.

Companies use various strategies to achieve its objectives and opportunities of marketing. For example, in addition to pursuing a low-cost strategy (selling products at low cost), Walmart has simultaneously pursued a strategy of opening new stores around the world quickly. Many companies develop marketing strategies as part of their general, the business plans in general. Other companies preparing marketing plans separate. Summary Let's marketing plans here and discuss them more fully in Chapter 16, The Marketing Plan.

Sales of flat planmarketing documents that is designed to communicate the marketing strategy for an offer. The aim of the plan is to influence executives, suppliers, distributors and other key partners in the enterprise for which they will invest money, time and effort to ensure that the plan is a success. is a strategic plan at the functional group that presents a marketing company with management. It's a script that improves the understanding of your company's competitive position. The marketing plan also helps the company allocate resources and divide the tasks that employees need to make the company achieve its goals. The different components of marketing plans will be discussed throughout the book and then discussed together in the final book. Next, let's take a look at different types of market strategies based companies before continuing the development of their marketing plans.

Figure 2.12. Products and Strategies for Market Entry

Products and Strategies for Market Entry

The different types of entry strategies and product market a company can take to reach your goals.

Market penetration penetration strategiesmarket strategySelling over existing products and services to existing customers. focus on increasing sales of a company from its existing products to its existing customers. Companies often offer customers special deals or low prices to increase their use and encourage them to buy products. When Frito-Lay distributes discount coupons to customers or offering discounts for buying multiple packages of chips, the company is using a penetration strategy. The Campbell Soup Company welcomes consumers to buy more soup, providing easy recipes using soup as an ingredient for cooking quick meals.

Product Development strategiesproduct strategyCreating development of new products or services for existing markets. involve creating new products to existing customers. A new product can be a totally new innovation, a better product or a product with higher added value, as one with a new feature. Cell phones that allow consumers to charge purchases with your phone or taking pictures are examples of a product with higher added value. A new product can also be one that comes in different variations, such as new flavors, colors and sizes. Mountain Dew Voltage, introduced by PepsiCo Americas Beverages, in 2009, is one example. Keep in mind, however, that what works for one company might not work for another. For example, soon after Starbucks announced it was cutting the number of its offer of lunch, Dunkin 'Donuts announced it was adding items to their lunch menu.

Market Development strategiesmarket strategySelling existing products or services to new customers. Foreign markets often provide opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures and direct investment are the methods that companies use to enter international markets. focus on new markets with existing products. For example, during the recent economic crisis, manufacturers of coffee machines of high began targeting customers who go to cafes. Manufacturers are hoping to develop the market for their products, making consumers know that they can make good coffee at home for a fraction of what they spend at Starbucks.

New markets could include new groups of customers, such as different age groups, new geographic areas, or international markets. Many companies, including PepsiCo and Hyundai, entered and were successful in rapidly emerging markets like Russia, China and India. As Figure 2.12, "Product and Market Entry Strategies" shows, there are different ways or strategies by which firms can enter international markets. The strategies vary in the degree of risk, control and investment firms face. Companies can simply exportexportSell products to buyers in foreign markets. Or sell their products to overseas buyers, which is the least risky and less expensive, but offers the least control. Many small businesses export their products to foreign markets.

Companies can also licenselicenseSell the right to use some aspect of the production process, trademark, patent or individuals in foreign markets. Or sell the right to use some aspect of their production processes, trademarks or patents, for individuals or businesses in foreign markets. Licensing is a popular strategy, but companies need to figure out how to protect their interests if the licensee decides to open her own business and to cancel the license agreement. The French manufacturer of luggage and handbag Louis Vuitton faced this problem when he entered China. Competitors began illegally putting the Louis Vuitton logo on various products, which cut the profits of Louis Vuitton.

Figure 2.13. Image

The front of a KFC franchise in Asia may be much larger than the KFC stores in the United States. Sale of franchises is a popular way for companies to enter foreign markets.

FranchisingfranchisingGranting an independent operator, the right to use your company's business model, sales and technical support for a fee. is a longer term form of licensing, which is extremely popular with business services such as restaurants such as McDonald's and Subway, hotels like Holiday Inn Express, and cleaning companies like Stanley Steamer. Franchisees pay a fee to the franchise and must adhere to certain standards, however, they benefit from the advertising and brand recognition of the company's franchising offers.

manufacturingWhen Contract hire companies manufacturingcontract manufacturers to produce their products in another country. allows companies to hire the vendors to produce their products in another country. The manufacturers are given the specifications of the products that are manufactured and sold on behalf of the company that contracted manufacturing. contract manufacturing can provide tax incentives and can be more profitable than manufacturing the product in the country of origin. Examples of products on contract manufacturing is often used to include mobile phones, computers and printers.

Joint ventureAn venturesjoint entity that is created when two parties agree to share their profits, losses and control with one another in an economic activity carried out jointly. combine the experience and investments of both companies and help companies enter foreign markets. Companies in each country share the risks, as well as investments. Some countries like China, often require companies to form a joint venture with a domestic company to enter the market. After entering the market through a partnership with a national company and settle in the market, some companies may decide to separate from their partner and become their own business. Fuji Xerox Co., Ltd., is an example of a joint venture between Japan's Fuji Photo Film Co. and the American company document management from Xerox. Another example of a joint venture Sony Ericsson. The combined company the Japanese firm Sony's electronics expertise with the Swedish company Ericsson telecommunications expertise.

Direct investmentdirect investmentOwning a company or facility abroad. (Owner of a company plant or outside) is another way to enter a foreign market. For example, Bev, a Dutch manufacturer of Beck's beer, was able to gain market share in the U.S. through the purchase of St. Louis, Anheuser-Busch. A strategy of direct investment involves more risk and investment, but offers greater control. Other companies, such as advertising agencies, may want to invest and develop their own business in international markets directly, instead of trying to do it through other companies.

Figure 2.14. Market Entry Methods

Market Entry Methods

Diversification strategiesdiversification strategyOffering products that are not related to other existing products produced by the organization. involve entering new markets with new products or doing something outside ordinary business of the company. Companies that have little experience with different markets or different products, often diversify their product lines by acquiring other companies. Diversification can be profitable but can also be risky if a company does not have the experience or the resources they need to successfully implement the strategy. purchase of Warner Music Group concert promoter Bulldog Entertainment is an example of a failed attempt at diversification.