2 Flashcards
(36 cards)
strategic planning
The process of developing and
maintaining a strategic fit between the
organization’s goals and capabilities and
its changing marketing opportunities.
mission statement
A statement of the organization’s
purpose—what it wants to accomplish in
the larger environment.
steps in strategic planning on the CORPORATE LEVEL
- Defining the company mission
- Setting company objectives and goals
- Designing the business portfolio
steps in strategic planning on the MARKET LEVEL
Planning marketing and other functional strategies
Business Portfolio
The collection of businesses and
products that make up the company.
Portfolio Analysis
The process by which management
evaluates the products and businesses
that make up the company
Growth Share Matrix
A portfolio-planning method that
evaluates a company’s SBUs in terms of
market growth rate and relative market
share.
strategic business units SBU’s
An SBU can be a company division, a
product line within a division, or sometimes a single product or brand. The company next assesses the attractiveness of its various SBUs and decides how much support each deserves.
what are the four types of SBU’s
-stars
-question mark
-cash cows
-dogs
whats on the vertical line
-relative market growth rate
whats on the horizontal line
-market share
whats the name of the matrix
boston consulting group approach
Product/market expansion grid
A portfolio-planning tool for identifying
company growth opportunities
through market penetration, market
development, product development, or
diversification.
market penetration
Company growth by increasing sales
of current products to current market
segments without changing the product.
market development
Company growth by identifying and
developing new market segments for
current company products.
product development
Company growth by offering modified
or new products to current market
segments.
diversification
Company growth through starting
up or acquiring businesses outside
the company’s current products and
markets.
value chain
The series of internal departments that
carry out value-creating activities to
design, produce, market, deliver, and
support a firm’s products.
value delivery network
A network composed of the company,
suppliers, distributors, and, ultimately,
customers who partner with each other
to improve the performance of the entire
system in delivering customer value.
marketing strategy
The marketing logic by which the
company hopes to create customer
value and achieve profitable customer
relationships.
market segmentation
Dividing a market into distinct groups
of buyers who have different needs,
characteristics, or behaviors and who
might require separate marketing
strategies or mixes.
market segment
A group of consumers who respond in
a similar way to a given set of marketing
efforts
market targeting
Evaluating each market segment’s
attractiveness and selecting one or more
segments to serve.
positioning
Arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products in the
minds of target consumers.
