Chapter 2 Flashcards
(24 cards)
strategic planning
the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
-marketing planning occurs at the business-unit, prdcut and market levels
mission statement
a statement of the organizations purpose -what it wants to accomplish in the larger environment
-should be market oriented and defined in terms of satisfying basic customer needs (basic needs last forever)
business portfolio
the collection of businesses and products that make up the company
portfolio analysis
the process by which management evaluates the products and businesses that make up the company
growth-share matrix
a portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share.
-stars (high growth, high share)
cash cows (low growth high share)
questions marks (low share units in high growth markets)
dogs (low growth, low share)
* product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
-ex: pg 43
* market penetration
a strategy for company growth by increasing sales of current products to current market segments without changing the product
* market development
a strategy for company growth by identifying and developing new market segments for current company products
-could use new demographic markets, geographical markets, etc
*Product development
a strategy for company growth by offering modified or new products to current market segments
* Diversification
a strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets
Downsizing
reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fir the company’s overall strategy
value chain
the series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
-only as strong as its weakest link
value delivery network
the network made up of the compnay, suppliers, distributers, and ultimately customers who “partner” with each other to improve the performance of teh entire system
-ex: people like McDonalds system, not neccessarily its food, more than Burger King
marketing strategy
the marketing logic by which the business unit hopes to create customer value and achieve profitable customer realtionships
* Market segmentation
dividing a market into distinct groups of buyers who have different needs, characterisitics, or behaviors and who might require separate products or marketing programs
-ex: car market
market segment
a group of consumers who respond in a smiliar way to a given set of marketing efforts
* Market targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
- should target segments its can generate teh greatest customer value adn sustain it over time
- may decide to specialize in a few “niche markets’ (ex: Ferrari)
- or may try to choose several realated segments - those with different kinds of customers but with the same basic wants
* Positioning
arranging for a product to occupy a clear, distinctive, and desireable palce relative to competing products in the minds of target consumers
“why a shopper will pay a little more for your brand”
-give them advantage in target market
* Differentiation
actually differentiating the market offering to create superior customer value
* Marketing Mix
- set of controllabe, tactical marketing tools that the firm blends to produce the response it wants in the target market
- product = goods and services
- Price = money customers pay to get the product
- place = company activities that make the product available to target customers
- promotion= activities that communicate the merits of the product and persuade the target customers to buy it
* SWOT analysis
an overall evaluation of a company’s:
Strenths - internal capabilties, factors, etc that may help the company serve teh customer and achieve its objectives
Weaknesses - internal limitations and negative situational factors that may interfere with performance
Opportunities- favorable facors or trends in teh external environment that the company may be able to exploit to its advantage
Threats- unfavorable external factors or trends that may present challenges to performance
marketing implementation
the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
marketing control
the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are acheived
- operating control - checking ongoing performance
- strategic control - looking at whether the stragies are well matched to oppoortunities
Return on Marketing investment (marketing ROI)
the net return from a marketing investment divided by the costs of the marketing investment
- hard to measure
- holds marketers more accountable
- quantify marketing results
