Strategic Planning and Tactical Planning



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Strategic Planning and Tactical Planning



Planning can be classified ... the basis ... scope or breadth. Strategic planning can be defined ... the process ... determining the primary objectives ... an organization and adopting courses ... action and allocating resources necessary to achieve those objectives. Strategic plans tend to be both broad and long range; focusing ... those organizational objectives that will have major impact... the organization ... a period ... several years. Strategic planning has a critical impact ... the destiny ... the organization since it provides long-run direction ... managers.

... contrast, tactical planning focuses ... the implementation ... activities specified ... the strategic plans. Tactical planning tends to be shorter-term than strategic planning, and focuses more ... current and near-term activities required to implement overall strategies.... the two types ... planning are different, both must be integrated ... an overall system designed to achieve organizational objectives.

Ex.6. Ask questions to fit these answers:

1. Managers direct the efforts of others toward the company goal.

2.Top managers devote their time to developing long-range plans for
the company.

3. Middle managers may operate a branch of a department store chain.

4. First-line managers have direct and continuing contact with production
personnel.

5. Every manager must possess three basic managerial skills,

6. The ability to create a work environment is crucial managerial skill at every
level.

7. Conceptual skills involve a manager's ability to «see the picture».

8. Strategic planning has a critical impact on the destiny of the organization since
it provides long-run direction for managers.

9. Tactical planning focuses on current and near-term activities,
10. Managers are continually involved with anticipating and preventing

problems.

Ex.7. Define or briefly explain the following key terms:

a) management

b)decision making

c) objective

d) leadership

MARKETING

Read and memorize the following words and word combinations:

to promote просувати

to distribute розподіляти

marketing concept концепція маркетингу

target market цільовий ринок

marketing mix асортимент товарів як маркетингова стратегія

product item одиниця продукції

brand марка

life cycle життєвий цикл

expenses витрати

costs витрати

customer замовник; клієнт; покупець

distribution channel канали розподілу

consumer споживач

consumer goods споживчі товари

agent агент; агентська фірма

wholesaler оптовий торговець

retailer роздрібний торговець

window display оформлення вітрини

sample зразок; модель

Marketing

Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers.

According to the marketing concept an organization should try to satisfy the needs of customers through a coordinated set of activities that at the same time allows to organization to achieve its goals. In other words, marketing is a strategic management process; the business of marketing must be organized, directed, and controlled to be effective.

It has often been said that me key to successful marketing is having the right product at the right price in the right place with the right promotion. In the end, the person who decides the «rightness» of these four elements is the customer.

The daily activities of people who work in marketing departments revolve around designing, developing, and enhancing products, setting the prices for those products, promoting the products' features and benefits to the target markets; and distributing the products to the markets. These activities, the core of any marketing system, constitute the four elements of what is known as the marketing mix. They are often referred to as “the four Ps”of marketing:

• product

• price

• promotion

• place (a convenient synonym for distribution)

Each of the 4 Ps focuses on the customer and each is related to the other because a decision about one usually affects the others. The most effective combination of the 4 Ps is the right marketing mix for each particular product or service.

Product is the first and most important element of the marketing mix. Product strategy calls for making coordinated decision on the product mix, product lines, individual product items, brands, packages and services.

As a product is developed and introduced and as it progresses through its life cycle, decisions must be made about the pricing of the product. Among the important factors considered when setting a price are(l) the costs and business expenses involved in the manufacture or distribution of the product,(2) its fashion and seasonal appeal,(3) the competition,(4) government price regulations, and(5) supply and demand. Marketers may choose to price above or below the average or current market price. If the price is above competitors' prices, the marketer must offer some unique advantages that are easily seen by the customers. If marketers price below the market price, they may attract more customers and increase sales. If the price is the same as others than the service must be better to attract the customer.

When a product comes off the production line, the manufacturer must select the best distribution channel to get that product to the consumer. No matter how good a product is, it can be a total sales failure if it arrives in the marketplace too late, if distribution costs are too high, or if it is not distributed as widely as a competing product. Producers of consumer goods have five channels to choose from in marketing their goods. The channels range from the simplest (manufacturers to consumer) to the most complex (manufacturer to agent to wholesaler to retailer to consumer). See the following illustration for a summary of channels for consumer goods.

Answer the following questions:

1. What is marketing?

2. What is marketing concept?

3. What is the key to successful marketing?

4. What do the daily activities of people who work in marketing departments

revolve around?

5. What is marketing mix?

6. Is each of the Ps related to the others? Why?

7. What does product strategy call for?

8. What factors should be considered when setting a price of a product?

9. What is a distribution channel?

10. Why is it so important to select the best distribution channel?

11. How many channels can producers of consumer goods choose from?

12. What does promotion consist of?

13. What examples of promotion do you know?

14. Why is marketing now seen as the central function of many organizations?

Exercises in Word Study



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