Chapter 2 Flashcards
(56 cards)
strategic planning
is the process of defining an organization’s direction and making
decisions on allocating resources to achieve its long-term objectives.
A mission statement
is a statement of the organization’s purpose—what it wants to
accomplish in the larger environment.
Mission
What we do today and why we exist, present
Vision
Where we want to be in the future
what is the mission statement?
1) purpose
2) value
3) goal (reason why)
what is a major activity in strategic planning ?
business portfolio
analysis,
GROWTH-SHARE MATRIX
is portfolio-planning method
that
evaluates a company’s strategic business units (SBUs) in
terms of market growth rate and relative market share.
business portfolio
analysis,
to evaluate and plan for the future of the
products and businesses that make up the company.
Question marks; growth-share matrix
are low-share business units in
high-growth markets. Requires heavy investments
to try to build into stars.
Boston Consulting Group (BCG) growth-share matrix
1) Star
2) cash cow
3) question mark
4) dog
cash cow in growth share matrix
are low-growth, high-share
businesses or products, less investment.
star in growth share matrix
are high-growth, high-share businesses or
products. Require heavy investments to finance
their rapid growth. They will turn into cash cows
Pareto Principle
is a concept that helps to
understand the breakdown of the factors
contributing to outcomes, identifying the key
elements that drive the majority of results.
Dogs in growth-share matrix
are low-growth, low-share businesses and
products. Generate enough cash to just maintain
themselves
Customer Value–Driven Marketing strategy
involves market segmentation, market
targeting, differentiation , and positioning.
Market segmentation.
Dividing a market into distinct groups of buyers who have different needs, characteristics, or
behaviors and who might require separate marketing strategies or mixes is
Market segment.
A group of consumers who are expected to respond in a similar way to a given set of marketing
efforts is
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
Managing the Marketing Effort
5 marketing management functions
1)analysis
2) planning
3) implementation
4) organization
5) Control
Differentiation.
Actually differentiating the market offering ( product) to create superior customer
value relative to the competition
marketing implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
Marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
The marketing mix
consists of everything the firm can do
to engage consumers and deliver customer value.
