Chapter 2 Flashcards
What are the 4 steps of strategic planning?
Defining the company’s mission
Setting objectives and goals (inspired by mission)
Designing a business portfolio (guided by objectives & goals)
Developing functional plans (in line with the company-wide plan)
What are the characteristics of a good mission?
Market-oriented, realistic, specific, motivating, and consistent with the market environment.
What is a business portfolio?
The collection of businesses and products that make up the company
What must the firm do to produce a business portfolio that best fits its strengths and weaknesses to opportunities in the environment?
Analyze and adjust the current business portfolio and develop growth and downsizing strategies for adjusting future portfolio.
Who is involved in a strategic plan6
Major functional departments:
Marketing
Finance
Accounting
Purchasing
Operations
Information systems
Human resources
etc.
What is marketing’s role in the company’s strategic planning?
Providing a marketing concept philosophy and inputs regarding attractive market opportunities
How do marketers produce superior value for customers?
By practicing partner relationship management (in other departments and other companies)
What are the central concepts of a marketing strategy?
Customer engagement, value, and relationships
What are the different steps of the Marketing strategy?
segmentation (divide into smaller segments)
targeting (select segments it can best serve)
differentiation (decide how it wants to bring value to target customers)
positioning
What is the marketing mix?
Product
Price
Place
Promotion
How does a company find the best strategy and mix?
analysis
Planning
implementation
control
What are the main components of a marketing plan?
Executive summary
Current marketing situation
Threats and opportunities
Objectives and issues
Marketing strategies
Action programs
Budgets
Controls
What are the different ways marketing departments can be organized?
Functional marketing organization
Geographic organization
Product management organization
or Market management organization
