2. Marketing Strategy Flashcards
(28 cards)
Strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Steps in strategic planning
Defining the company mission, setting objectives and goals, designing the business portfolio, planning marketing and other functional strategies
Mission statement
A statement of the organization’s purpose - what it wants to accomplish in the larger environment.
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.
Startegic business units (SBUs)
Could be anything that we put effort on within the strategic business plan - division, control over its resources, advertisment, marketing str, etc.
Growth-share matrix
A portfolio planning method that evaluates a company’s SPUs in terms of marketing growth rate (attractiveness) and relative market share (strenght).
Stars
High-growth, high-share businesses or products. Need heavy investments to finance their rapid growth. Eventually, their growth will slow down, and they will turn into cash cows.
Cash cows
Low-growth, high-share businesses or products. Less investment to hold their market share. They produce a lot of cash.
? marks
Low-share, high-growth businesses or products. Need a lot of cash to hold their share or increase it. Management should decide whether to build into stars or phase out.
Dogs
Low-growth, low-share businesses or products. Generate cash to maintain themselves.
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 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 diff. needs, characteristics, or behaviors and who might require separate marketing startegies 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.
Differentiation
Actually differentiating the market offering to create superior customer value.
