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* Chapter 2 * Nike’s customer-driven marketing * To build image and market share, Nike * Outspent competitors on big endorsements * Conducted splashy promotional events * Started big-budget ads * Sales slipped in the late 1990s * Turnaround- new product innovation and a focus on customer relationships * Mastered social networking, creating deep engagement and community among customers * * Strategic planning * Involves adapting the firm to take advantage of opportunities in its constantly changing environment * Strategic planning helps a firm to maintain a strategic fit between its goal and capabilities and its changing marketing opportunities * * Mission statement * Statement of the organization’s purpose * - What it wants to accomplish in the larger environment * Market oriented and defined in terms of satisfying basic customer needs * Emphasizes the company’s strengths * Focuses on customers and the customer experience the company seeks to create * * Business portfolio * Collection of businesses and products that make up the company * Steps in business portfolio planning 1. Analyze the firm’s current business portfolio 2. Develop strategies for growth and downsizing to shape the future portfolio * * Portfolio analysis * Evaluation of the products and businesses that made up the company by the management * Steps: 1. Identifying the strategic business units (SBUs) 2. Assessing the attractiveness of its various SBUs and deciding the support each SBU deserves * The purpose is to direct resources toward more profitable businesses while phasing out or dropping weaker ones * * Figure 2.2 The BCG Growth-share Matrix * * * Growth-Share matrix * Evaluates a company’s SBUs in terms of market growth rate and relative

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