Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships
Strategic planning : Strategic planning is the process of an organization to achieve long-term goals in the future and provide direction for the decision makers. Tactical planning : Tactical planning is the process of short range activities that fulfill the needs of the customer and also help to achieve the objective of strategic planning. (a) "Global automakers begin setting up of manufacturing plants in India." Planning type : Strategic planning Justification : To set up new manufacturing plants involves the mission of the company, objectives and goals, building of portfolio and setting up of new functional plans. All these form the major category of strategic planning. (b) "Merging of live Nation and Ticketmaster" Planning type : Tactical planning Justification : The two companies have merged in a short span based on the situation in order to improve the company experience, innovation, increasing the customer services, these objectives ultimately lead the organization to long -term goal. (c) "The New England patriots trade a backup quarterback to the Kansas City chiefs." Planning type: Tactical planning Justification: According to the situation, the company trades a backup plan to sustain in the market. (d) "A regional airline looks for ways to expand to other areas of the country." Planning type: Strategic planning Justification : Expanding is the strategic planning that helps the company to grow in the market; attracting new customers by advisement increases the market share.
Millennials are the customer groups who born in between 1977 and 1994. Hotel chains focus on this consumer group for enhancing their financial growth. The following are some of the reasons for this: • This consumer group has a strong buying potential or buying power. It has been estimated that they can spend up to $200 billion a year. • These categories of customers give less importance to brand loyalty and they prefer to have more interesting experiences rather than comfort in hotels. Even though they are profitable, they do not stay for long term. • They come to hotels for spending their holidays leisurely. They expect various extra provisions like bars, restaurants etc. So if the hotel chains introduce any new events these people will definitely make it a success. • If any hotel does not concentrate on these customers, it will become a competitive disadvantage for the hotel in future. • This customer group is the largest in the country and also their buying power is expected to increase. So, it is necessary for the hotels to attract this group for their future profits. The hotels have started modifying their services and introducing interesting events and created an environment that suits the millennial customers. The competition is increasing between the hotels as this group prefers the hotels which are interesting when compared to their previous generation. The hotels are struggling in this stiff competition as they may lose their customer anytime as the millennials lacks brand loyalty.
A manufacturer of pet supplies wants to expand its business in retail stores and marketing pet-on-site. Advantages of this expansion strategy are listed below: • This strategy would help to increase the growth and market share of the business firm by diversifying its product. • Helps to increase the customer base by attracting new customers. • Online sales of pets would help to increase the reach of marketer. Disadvantages of this expansion strategy are listed below: • The company might face the problem of inexperience into new business area. • Company can no longer focus on its core business. • Diversified business might lead towards poor service quality. • It might lead towards consumer dissatisfaction. Hence, it can be concluded that a company should analyze it's the risk-profit payoff.
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