Quiz 2: Strategic Planning in Contemporary Marketing
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.
Target customers of Company DC's new stadium possess the following characteristics: • Football loving people along with their families and friends • High disposable income • Focus on brand image and reputation of the stadium Company DC has targeted the right customers for their new stadium. The stadium comprises all the facilities and services to attract and retain their target customers. It has standing rooms with video and internet access. It also contains large video screen and longest single-span roof. Besides this, cost of seats and food is significantly high for this stadium.
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.