Chapter 2 Flashcards
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