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How different business strategies influence marketing decisions?
Business unit typically incoporate a number of district product-markrt. A given entry’s marketing manager monitors and evaluates the product’s environmental situation and develops marketing programsuited to it. Howeer, the manger’s freedom to design such a program may be constrained by the business unit’s competitive strategy. This is because diffrent strategies focus on different objectives and seek to gain and maintaint a competitive advantage in different ways. As a result, different functions within the SBU-and different activities within a given functonal area, such as marketing-are critical for the success of different strategies.
There are,therefore, different key sucess factors inherent in the various generic business strategies. This constrains the individual marketing manager’s freedom of action in two basic ways. First,because varying functons within the business unit are more important under diffrerent strategies, they receive different proportions of the SBU’s total resources. Thus, the SBU’s strategy influences the amount of resoureces committed to marketing and ultimately the budget available to an individual marketing manager within the business unit. Second, the SBU’s choice of strategy influences both the kin of market and copetitive situation that indiviual product-makret entries are likely to face and the objectives they are asked to attain. Both constraints have implication for the design of marketing programs for individual products within a SBU.
It is risky to draw broad generalizations about how specific marketing polices and program elements might fir within different business strategies. Although a business stratregy is general satement about how a SBU chooses to compete in an industry, that unit may comprise a number of product-market entries facing diffrent competitive situation in varios markets. Thus, there is likely to be a good deal of variation in marketing programs. And in the freedom individual marketing managers have in designing them, across product within a given SBU. Still, a business’s strategy does set a general direction for the types of some influence on marketing polices that cut across product-market. Exhibit 3.7 outlines differences in marketing polices and program elements that occur across bussines pursuing different strategies, and those differences are duscussed as follows.
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