IIS UNIVERSITY, Jaipur

SEM - 4, BBA

Marketing Management
GBBA 402B

Submitted To- Submitted By-

Dr. Isha Sharma Krishna Asawa
Enrollment No.- 31506
Section- A
Developing Marketing Strategies and
Plans for Growth and Downsizing
 Strategic Planning

Strategic planning is a concept that encompasses marketing, promotion,

sales, and financial goals and is essentially about developing goals for your
business. Having a strategic plan for the business means having a plan in
place to deal with both expected and unexpected situations.
Components Of Strategic Planning
 Marketing Strategy and Marketing Plan

MARKETING STRATEGY
A plan of action for identifying and analysing a target market and developing
a marketing mix to meet the needs of that market.

MARKETING PLAN
A WRITTEN document that specifies the activities to be performed to
implement and control an organization's marketing activities.
 Core Competencies

Things a firm does well (strengths) which SOMETIMES give it an

advantage over it competition

-May be a strength, but not a guaranteed competitive advantage.

-Only an advantage when the market allows it.

 Strategic Business Unit (SBU)

Strategic Business Unit (SBU) implies an independently managed division

of a large company, having its own vision, mission and objectives, whose
planning is done separately from other businesses of the company. The
vision, mission and objectives of the division are both distinct from the
parent enterprise and elemental to the long-term performance of the
enterprise.
 What Is a BCG Growth-Share Matrix?

The Boston Consulting Group (BCG) growth-share matrix is a planning tool

that uses graphical representations of a company’s products and services in
an effort to help the company decide what it should keep, sell, or invest more
in.
The BCG growth-share matrix breaks down products into four categories,
known heuristically as "dogs," "cash cows," "stars," and “question marks.”
Each category quadrant has its own set of unique characteristics.
Dogs

If a company’s product has a low market share and is at a low rate of growth,

it is considered a “dog” and should be sold, liquidated, or repositioned. Dogs
, found in the lower right quadrant of the grid, don't generate much cash for
the company since they have low market share and little to no growth.
Because of this, dogs can turn out to be cash traps, tying up company funds
for long periods of time.
Cash Cows

Products that are in low-growth areas but for which the company has a
relatively large market share are considered “cash cows,” and the company
should thus milk the cash cow for as long as it can. Cash cows, seen in the
lower left quadrant, are typically leading products in markets that are mature
.
Stars

Products that are in high growth markets and that make up a sizable portion
of that market are considered “stars” and should be invested in more. In the
upper left quadrant are stars, which generate high income but also consume
large amounts of company cash. If a star can remain a market leader, it
eventually becomes a cash cow when the market's overall growth rate
declines
Question Mark

Questionable opportunities are those in high growth rate markets but in

which the company does not maintain a large market share. Question marks
are in the upper right portion of the grid. They typically grow fast but
consume large amounts of company resources. Products in this quadrant
should be analyzed frequently and closely to see if they are worth
maintaining.
 Downsizing

Downsizing literally means reducing the size of the organisation in order to

cut costs, hive off unprofitable operations and improve operational
efficiency. In fact, it is a restructuring process to meet the challenges of the
environment. In the context of human resource management, downsizing
involves elimination of certain jobs with a view to cut pay bill and improves
work efficiency.
 Reasons for Downsizing in Organizations

• To Solve the Problem of Initial Over-Staffing

• To Deal with the Adverse Consequences of Economic Recession
• To Take Advantage of Technological Advancements
• To Concentrate on Core Activities and to Outsource Non-Core Activities