Lecture-4: Marketing Management

Part-1: Vision, Mission, Goals, and Objectives

Vision: what you want to accomplish in the very long run. It is sometimes equivalent to almost
impossible dream that provides direction for the next 10 to 20 years. It is prepared for long term
period. Example: the vision of IUT is “To be a leading University of Science, Engineering and
Technology in the World.”
Mission: General statement of how you will achieve your vision. It is prepared for 5 to 10 years.
It is possible to achieve. It is prepared for short term. Another way to define mission is the
purpose for which an organization exits. Over time, the mission may change to respond to new
opportunities or market conditions. For example, Amazon.com has changed its mission from
being the world’s largest online bookstore to aspiring to be the world’s largest online store.
Mission statements are at their best when they reflect a vision. However, to define the mission of
a particular organization Peter Drucker suggested asking some questions: these questions are-
✓What is our business? ✓Who is the customer? ✓What will our business be? ✓What is of value
to the customer? ✓What should our business be?

The missions of IUT:

M1: Providing education & training of international standard for the youths of the Ummah.
M2: Undertaking quality research leading to innovation.
M3: Launching cutting-edge disciplines matching the requirements of the member states.
M4: Internationalizing through increasing overseas students, staffs, and external collaboration.
Organizations develop mission statements to share with managers, employees, and (in many
cases) customers. A clear, thoughtful mission statement provides a shared sense of purpose,
direction, and opportunity. Good mission statements have five major characteristics:
They focus on a limited number of goals: The statement “We want to produce the highest
quality products, offer the most service, achieve the widest distribution, and sell at the lowest
prices” claims too much.
They stress the company’s major policies and values: They narrow the range of individual
discretion, so employees act consistently on important issues.
They define the major competitive spheres within which the company will operate: Key
competitive dimensions for mission statements may be based on industry, products and
applications, competence, market segment or geographical.
They take a long-term view: Management should change the mission only when it ceases to be
relevant.
They are as short, memorable, and meaningful as possible: Marketing consultant Guy
Kawasaki advocates developing three- to four-word corporate mantras rather than mission
statements, like “Enriching Women’s Lives” for Mary Kay.
Goals: What you need to accomplish to implement your strategy. It is designed for achieving
different missions. Goals are not specific, rather they are expressed in general manner without
mentioning anything very specifically. One goal of IUT may be- increase the quality of education
or increase the number of publications. Here one thing is noteworthy- no number has been
specified here.
Objectives: it is specific actions and timeliness for achieving the goal. It can be thought of
numerical presentations of goals. For example: one objective of IUT may be- to have at least 300
publications within the next two years from faculty members in top ranked journals. All the
things are specified here.
The link among vision, mission, goals, and objectives:

Part-2: GE/McKinsey Matrix

One way to allocate resources to different SBUs is BCG Matrix. That was discussed in the last
class. However, there is another way to allocate resources to different SBUs of a Particular
company is GE/McKinsey Matrix. This matrix is developed based on two parameters: business
strength and market attractiveness. The business strength and market attractiveness are measured
by different parameters. The following table shows it.
Real life example of GE/McKinsey Matrix:
Part-3: Assessing Growth Opportunities
Assessing growth opportunities includes planning new businesses, downsizing, and terminating
older businesses. If there is a gap between future desired sales and projected sales, corporate
management will need to develop or acquire new businesses to fill it. The first option is to
identify opportunities for growth within current businesses (intensive opportunities). The second
is to identify opportunities to build or acquire businesses related to current businesses
(integrative opportunities). The third is to identify opportunities to add attractive unrelated
businesses (diversification opportunities).
Intensive Growth: Corporate management’s first course of action should be a review of
opportunities for improving existing businesses. One useful framework for detecting new
intensive growth opportunities is a “product-market expansion grid.” It considers the strategic
growth opportunities for a firm in terms of current and new products and markets. The company
first considers whether it could gain more market share with its current products in their current
markets, using a market-penetration strategy. Next it considers whether it can find or develop
new markets for its current products, in a market-development strategy. Then it considers
whether it can develop new products of potential interest to its current markets with a product-
development strategy. Later the firm will also review opportunities to develop new products for
new markets in a diversification strategy.
So how might Musicale use these three major intensive growth strategies to increase its sales? It
could try to encourage its current customers to buy more by demonstrating the benefits of using
compact disks for data storage in addition to music storage. It could try to attract competitors’
customers if it noticed major weaknesses in their products or marketing programs. Finally,
Musicale could try to convince nonusers of compact disks to start using them. How can Musicale
use a market-development strategy? First, it might try to identify potential user groups in the
current sales areas. If it has been selling compact disks only to consumer markets, it might go
after office and factory markets. Second, it might seek additional distribution channels by adding
mass merchandising or online channels. Third, the company might sell in new locations in its
home country or abroad. Management should also consider new-product possibilities. Musicale
could develop new features, such as additional data storage capabilities or greater durability. It
could offer the CD at two or more quality levels, or it could research an alternative technology
such as flash drives. These intensive growth strategies offer several ways to grow. Still, that
growth may not be enough, and management must also look for integrative growth opportunities.
Integrative Growth: A business can increase sales and profits through backward, forward, or
horizontal integration within its industry. Backward integration means purchasing suppliers,
forward integration means purchasing wholesalers and retailers, and horizontal integration means
purchasing competitors.
Diversification Growth: Diversification growth makes sense when good opportunities exist
outside the present businesses—the industry is highly attractive and the company has the right
mix of business strengths to succeed. Several types of diversification are possible for Musicale.
First, the company could choose a concentric strategy and seek new products that have
technological or marketing synergies with existing product lines, though appealing to a different
group of customers. It might start a laser disk manufacturing operation, because it knows how to
manufacture compact discs. Second, it might use a horizontal strategy to search for unrelated
new products that appeal to current customers. Musicale might produce compact disc cases, for
example, though they require a different manufacturing process. Finally, the company might seek
new businesses that have no relationship to its current technology, products, or markets, adopting
a conglomerate strategy to consider making application software or personal organizers.

Part-4: SWOT Analysis

Performing real life SWOT analysis: Use the following Questions list. Then develop the matrix