Chapter 1: Strategic Planning and the Marketing Management Process Flashcards Preview

Marketing 5410: Marketing Management > Chapter 1: Strategic Planning and the Marketing Management Process > Flashcards

Flashcards in Chapter 1: Strategic Planning and the Marketing Management Process Deck (21):
1

Distinctive Competencies

Things that an organization does so well that they give it an advantage over similar organizations. No matter how appealing an opportunity may be, to gain advantage over competitors, the organization must formulate strategy based on distinctive competencies.

2

Diversification

An organizational strategy that seeks growth through new products (often through acquisitions) for customers not currently being served.

3

Market Development

An organizational strategy that seeks growth through seeking new customers for present products.

4

Market Penetration

An organizational strategy that seeks growth through increasing the sale of present products to present customers.

5

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

6

Marketing Concept

The marketing concept means that an organization should seek to make a profit by serving the needs of customer groups. Its purpose is to rivet the attention of marketing managers on serving broad classes of customer needs (customer orientation), rather than on the firm's products (production orientation) or on devising methods to attract customers to current products (selling orientation).

7

Marketing Information System

Throughout the marketing management process, current, reliable, and valid information is needed to make effective marketing decisions. Providing this information is the task of the marketing information system and marketing research.

8

Marketing Management

The process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives.

9

Marketing Mix

The marketing mix is the set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives. The controllable variables are usually classified according to four major decision areas: product, price, promotion, and place (or channels of distribution).

10

Marketing Planning

The marketing planning process produces three outputs: (1) establishing marketing objectives, (2) selecting the target market, and (3) developing the marketing mix.

11

Organizational Mission

The mission statement, or purpose, of an organization is the description of its reason for existence. It is the long-run vision of what the organization strives to be, the unique aim that differentiates the organization from similar ones and the means by which this differentiation will take place. An effective mission statement will be focused on markets rather than products, achievable, motivating, and specific.

12

Organizational Objectives

The end points of an organization's mission and are what it seeks through the ongoing, long-run operation of the organization. The organizational mission is distilled into a finer set of specific, measurable, action commitments by which the mission of the organization is to be achieved.

13

Organizational Portfolio Plan

This stage of the strategic plan involves the allocation of resources across the organization's product lines, divisions, or businesses. It involves deciding which ones to build, maintain, or eliminate, or which to add.

14

Organizational Strategies

The choice of the major directions the organization will take in pursuing its objectives. There are three major approaches: (1) strategies based on products and markets, (2) strategies based on competitive advantage, and (3) strategies based on value

15

Organizational Strategies Based on Competitive Advantage

This approach to developing organizational strategy would develop either a cost leadership strategy which focuses on being the lower cost company in the industry or a differentiation strategy which focuses on being unique in the industry or market segment along dimensions that customers value.

16

Organizational Strategies Based on Products and Markets

An approach to developing organizational strategies that focuses on the four paths an organization can grow: market penetration strategies, market development strategies, product development strategies, and diversification strategies.

17

Organizational Strategies Based on Value

This approach to developing organizational strategy seeks to succeed by choosing to deliver superior customer value using one of three value strategies- best price, best product, or best service.

18

Product Development

An organizational strategy that seeks growth through developing new products primarily for present customers.

19

Situation Analysis

This stage of the marketing planning process involves the analysis of the past, present, and likely future in six major areas of concern: (1) the cooperative environment; (2) the competitive environment; (3) the economic environment; (4) the social environment; (5) the political environment; and (6) the legal environment. Opportunities for and constraints on marketing activities arise from these environments.

20

Strategic Business Units (SBUs)

Product lines and divisions that can be considered a "business" for the purpose of the organizational portfolio plan. An SBU must have a distinct mission, have its own competitors, be a single business or collection of related businesses, and be able to be planned independently of the other SBUs.

21

Strategic Planning

Provides a blueprint for management actions for the entire organization. It includes all the activities that lead to the development of a clear organizational mission, organizational objectives, and appropriate strategies to achieve the objectives for the entire organization.