Ch. 2 Company and Marketing Strategy: Partnering to Build Customer Relationships Flashcards
Mission statement
A statement of the organization’s purpose–what it wants to accomplish in the larger environment.
Forging a mission begins with the following 4 questions: What is our business? Who is the customer? What do consumers value? What should our business be? Many formal mission statements answer these questions. A clear mission statement acts as an “invisible hand” that guides people in the organization. Pg. 39
Growth-share matrix
A portfolio-planning method that evaluates a company’s SBUs in terms of its market growth rate and relative market share. Stars, Cash cows, Question marks, Dogs. Pg. 43
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. Pg. 49
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Pg. 49
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Such deceptively simple statements form the backbone of a product’s marketing strategy. EX: McDonalds “im lovin it” Pg. 50
Differentiation
Actually differentiating the market offering to create superior customer value. Pg. 50
Marketing mix
The set of tactical marketing tools–product, price, place, and promotion–that the firm blends to produce the response it wants in the target market. Pg. 52
SWOT analysis
An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T). Pg. 55
Return on marketing investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment.
Marketing performance measure. It measures the profits generated by investments in marketing activities. Pg. 58
Operating control
Involves checking ongoing performance against the annual plan and taking corrective action when necessary. Its purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan. It also involves determining the profitability of different products, territories, markets, and channels. Pg. 58
Strategic control
Involves looking at whether the company’s basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace. Pg. 58
