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International Marketing > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Strategic planning

A

The process of the developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities

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2
Q

Mission statement

A

A statement of the organisation’s purpose - what it wants to accomplish in the larger environment

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3
Q

What should the mission statement be about?

A

Mission statements shouldn’t be focused on the products itself (myopia), but rather in terms of satisfying the customers’ needs and wants

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4
Q

Setting Company Objectives and Goals

A

The company should turn its mission statement into detailed
supporting objectives for each level of management

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5
Q

Business portfolio

A

The collection of businesses and products that make up the company

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6
Q

TWO steps in planning business portfolios

A

Analyse the company’s current business portfolio and determine which businesses should receive more or less resources/investment

Shape the future portfolio by developing strategies for growth and downsizing

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7
Q

Portfolio analysis

A

The process by which management evaluates the products and businesses that make up the company

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8
Q

Strategic business units

A

Key businesses that make up the company

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9
Q

TWO ways to evaluate SBUs

A

Attractiveness of SBU’s market or industry

Strength of the SBU’s position in their market or industry

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10
Q

A matrix that classifies SBUs into four categories based on two criteria

A

Market growth rate

Relative market share

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11
Q

Stars

A

High growth rate & high market share

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12
Q

What do stars need?

A

Stars require heavy investment to finance their rapid growth

Growth will eventually plateau and they will turn into cash cows

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13
Q

Cash cows

A

Low growth rate & high market share

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14
Q

What do cows need?

A

Requires little investment as it is already well-established

Generates capital to be invested in other SBUs and operating costs

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15
Q

Question marks

A

High growth rate & low market share

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16
Q

What do question marks needs?

A

Requires a lot of investment to hold current position, even more to increase it

Management has to decide which ones to keep and which to phase out

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17
Q

Dog

A

Low growth rate and low market share

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18
Q

What does dog need?

A

Generate enough money to sustain themselves but do not promise to be large sources of cash

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19
Q

FOUR actions to be taken by management for SBUs

A

Build

Hold

Harvest

Divest

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20
Q

Build

A

Invest more into the SBU and build its shares

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21
Q

Hold

A

Invest just enough to hold the SBU’s shares at current level

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22
Q

Harvest

A

Milk the SBU’s short-term cash flow regardless of long- term effects

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23
Q

Divest

A

Selling or phasing out the SBU, using its resources elsewhere

24
Q

Problems with Matrix Approaches

A

It is difficult to measure market growth rate and market share accurately

These approaches focus only on classifying current businesses but
don’t provide much advice for future planning

Centralised strategic planning is costly, time-consuming, and difficult to implement

25
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
26
Market development
Company growth by identifying and developing new market segments for current company products
27
Product development
Company growth by offering modified or new products to current market segments
28
Diversification
Company growth through starting up or acquiring businesses outside the company’s current products or markets
29
Value chain
The series of internal departments that carry out value- creating activities to design, produce, market, deliver, and support a firm’s products
30
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
31
Marketing strategy
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
32
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours and who might require separate marketing strategies or mixes
33
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
34
Market targeting
Evaluating each segment’s attractiveness and selecting one or more segments to serve
35
Nicher
A company that serves only one or a few special segments or market niches Companies usually enter a new market by serving a single segment, they will add more segments if the first proves successful
36
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
37
With what does effective positioning with?
Differentiation
38
Marketing mix
The set of marketing tools - product, price, place, and promotion – that the firm blends to produce the response it wants in the target market
39
Product
The market offering provided to the market by a company
40
Price
Amount of money required for the consumer to acquire the market offering
41
Place
Company activities that make the product available to target consumers
42
Promotion
Activities that communicate the benefits and merits of the products and persuade the customers to buy it
43
Critics believe that the 4 P’s omit or underemphasise certain activities:
Does not discuss services Does not discuss packaging It is is seller focused and not customer focused
44
FIVE processes required for effective management of marketing
Analysis Planning Implementation Organisational Control
45
What does a SWOT analysis offer
A better understanding of the company’s situation
46
Marketing implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives Since everything is more connected now, more parties are required to coordinate in order to successfully implement a strategic plan
47
Marketing Department Organisation
A company must design a marketing organisation that can carry out marketing strategies and plans
48
4 ways for the marketing departments
Functional organisation Geographic organisation Product management organisation Market or customer management organisation
49
Functional organisation
Different marketing activities are headed by a functional specialist – sales manager, advertising manager...
50
Geographic organisation
Assigning sales and marketing people to specific countries, regions, and districts, often used by companies selling goods across countries and internationally
51
Product management organisation
Used by companies with many different products and brands
52
Market/customer management organisation
Used by companies who sell one product line to many different types of markets and customers who have different needs
53
Marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
54
FOUR steps to marketing control
Set specific marketing goals Measure performance Determines causes for any difference between expectation and performance Take corrective action
55
Marketing return on investment (ROI)
The net return from a marketing investment divided by the costs of the marketing investment Return may be measured by brand awareness, social media response, sales, or market share

International Marketing (13 decks)

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