Chapter 19 Flashcards
(28 cards)
Market based grouping
-Organizational groupings that utilize specific customer segments
Geographical groupings
-Organizational groupings in which a unit is subdivided according to geographical location
Functional grouping
-Organizational groupings, such as manufacturing, marketing and finance which are the different business activities within a firm
Product line groupings
-organizational groupings in which a unit is responsible for specific product offerings
Staff positiions
-people in staff positions who have the authority and responsibility to advise people in the line positions but cannot issue direct orders to them
Guidelines for an effective marketing plan
- Set measurable goals
- Use a base of facts and valid assumptions
- Utilize simple but clear and specific plans
- Have complete and feasible plans
- Make plans controllable and flexible
Set measurable goals
1.
- What can be accomplished and by when.
Use a base of facts and valid assumptions
-Base on facts and not assumptions
Utilize simple but clear and specific plans
-Effective execution of plans requires that people at all levels in the firm understand what, when and how they are to accomplish their tasks
Have complete and feasible plans
-Marketing plans must incorporate all the key marketing mix factors and can be supported by adequate resources
Make plans controllable and flexible
- Must enable results to be compared with planned targets
- Find the right person to implement plans
- Work towards consensus building
Problems in Marketing planning and strategies
- Plans may be based on poor assumptions about environmental factors
- Planners and their plans may have lost sight of their customers needs
- Too much time and effort may be spend on data collection and writing the plans
- Line operating managers often feel no sense of ownership in implementing the plans
Balancing Value and Values in Strategic marketing plans
- Value based planning combines marketing planning ideas and financial planning techniques to asses how much a division or strategic business contributes to the price of a company’s shares
- Value is created when the financial return of a strategic activity exceeds the cost of the resources allocated to the activity
What are PORTER’S Four generic business strategies?
- Cost leadership
- Reducing expenses and lowering product prices while targeting a broad array of market segments - Differentiation
- Products to have significant points of different in product offerings, brand image, higher quality, advanced technology or superior service to charge a higher price while targeting a broad array of market segments - Cost focus
- A cost focus strategy involves controlling expenses and lowering product prices - Differentiation focus
- A differentiation focus strategy requires products to have significant points of different to target one or only a few market segments
What are the Market Product synergies?
- Synergy effects
- Market product concentration.
- Market specialization
- Product specialization
- Selective specialization
- Full coverage
What is a generic business strategy?
It is the one that can be adopted by any firm regardless of the product or industry involved to achieve a competitive advantage.
What are profit enhancement options?
- Increase revenues
- Decrease expenses
- Do both
How to increase revenues?
-Strategy option of increasing revenues by using only one or a combination of four ways to address present or new markets and products
- Market penetration
- Product development
- Market development
- Diversification
Annual marketing plans
-Developed by a marketing or product manager. Deal with marketing goals and strategies for a product
Long range marketing plans
-Covers marketing activities from two to five years in the future
Evaluation
-Corrective action memos, triggered by comparing results with goals often using the firms marketing metrics and dashboards
Implementation
-Results that describe the outcomes of implementing the plans
Planning
-marketing plans that define goals and the marketing mix strategies to achieve them
Sales response function
- Relates the expense of the marketing effort to the marketing results obtained
- Share points or percentage point of market share, are the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm.
