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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -1 “The greatest strategy is doomed if it’s implemented badly.” – Bernard Reimann Implementing Strategies
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -2 Less than 10% of strategies formulated are successfully implemented! The Nature of Strategy Implementation
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -3
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -4 Market segmentation Product positioning Marketing Issues
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -5 Subdividing of a market into distinct subsets of customers according to needs and buying habits Marketing Issues Market Segmentation
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -6 Market Segmentation Market Segment Basis Psychographic Behavioral Geographic Demographic
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -7 Product Place Promotion Price Marketing Mix Variables
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -8 Marketing Issues Schematic representations that reflect how products/services compare to competitors’ on dimensions most important to success in the industry Product Positioning
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -9 Product Positioning Steps 1. Select key criteria 2. Diagram map 3. Plot competitors’ products 4. Look for niches 5. Develop marketing plan
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -10 Product-Positioning Map for Menswear Retail Stores Very latest, fashionable menswear Conservative, everyday menswear Low PriceHigh Price Average department store Average specialty chain Average mass merchandiser or discounter
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -11 Projected Income Statement
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -12 Projected Balance Sheet
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -13 Types of Budgets Cash budgets Operating budgets Sales budgets Profit budgets Factory budgets Capital budgets Expense budgets Divisional budgets Variable budgets Flexible budgets Fixed budgets
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -14 1. What a firm owns 2. What a firm earns 3. What a firm will bring in the market Evaluating Worth of a Business Three Basic Approaches
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -15 Evaluating Worth of a Business Net worth or stockholder’s equity Net profit – conservative value would be five times the firm’s current annual profits Price-earnings ratio method Outstanding shares method
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 8 -16
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