Chapter 2 Flashcards
Core competencies
Things firm does extremely well; sometimes gives advantage over competition –
Financial/human resources, reputation, goodwill, brand name
Market opportunity
Combination of circumstances and timing permits organization to reach target market –
Core competencies matched to opportunities;
Strategic windows
Strategic windows
Temporary period of optimal fit between key requirements of market and particular firm capabilities
Competitive advantage
Result of company matching core competency to marketplace opportunities –
Manufacturing skills, technical skills, marketing skills
SWOT Analysis
Assessment of organization’s strengths, weaknesses, opportunities, threats
Strengths
competitive advantages, core competencies
Weaknesses
limitations on competitive capability
Opportunities
favorable environment conditions
Threats
conditions/barriers to reach objectives
Mission statement
Long-term view/vision of what organization wants to become; answers two questions –
Who are our customers?
What is our core competency?
Marketing objective
Statement of what is to be accomplished through marketing activities to match strengths to opportunities/provide conversion of weakness to strength.
Be stated clear, simple terms;
Be accurately measurable;
Specify time frame for accomplishment;
Be consistent with business-unit and corporate strategy
Market-Growth/Market-Share Matrix
Strategic planning tool based on philosophy product’s market growth rate and share important to determine market strategy;
Factors determining SBU/position:
Product-market growth rate;
Relative market share
Star
Product-market growth: High
Relative market share: High
Question mark
Product-market growth: High
Relative market share: Low
Cash cow
Product-market growth: Low
Relative market share: High
Dog
Product-market growth: Low
Relative market share: Low
Marketing strategy
Target market selection - Define/understand target market:
Focus on specific, profitable customer groups,
Recognize changes in market;
Create market mix:
Analyze needs, preference, behavior,
Skills and resources required for product design, pricing, distribution, promotion,
Maintain consistency & flexibility in mix decisions
Creating marketing plan
Marketing planning - Process of assessing opportunities and resources, determining objectives, defining strategies, establishing implementation and marketing program control guidelines
Total Quality Management (TQM)
Constantly improving, never satisfied: uniform commitment to quality in all areas promotes culture meeting customers’ quality perceptions;
Benchmarking: compare quality of goods/services/processes with best-performing competitiors;
Empowerment: give customer-contact employees authority and responsibility to make marketing decisions on own
Machiavelli
“It’s better to be feared than loved.”
Taylor
Piece-rate system;
Doesn’t create best quality
Gilbreath
“Therblig”
Least amount of energy and time to complete task
Hawthorne
Environmental changes affect employees
Deming
Quality > Quantity;
Always improving;
Originally shunned by American producers, went to Japan and established Japan’s quality philosophies
