Chapter 2 book Flashcards
(26 cards)
Three phases of value delivery process
- Choosing the value (segment, target, position) (STP)
- Providing the value
- Communicating the value
Note*: The value delivery process begins before there is a product and is continuous throughout development and after launch.
What is the essence of strategic marketing?
STP - segment, target, position. Choosing a markets value.
Which five primary strategic activities are identified in the Porters value chain?
- Inbound logistics (bringing in materials)
- Operations (materials to final products)
- Outbound logistics (shipping out products)
- Marketing (sales)
- Service
What are a company’s five core business processes?
- Market sensing
- New offering realisation
- Customer acquisition
- Customer relationship management
- Fulfilment management (activities related to receiving/approving orders, shipping goods and collecting payment)
What is the general term for the value delivery network?
Supply chain
What characteristics do core competencies have?
- They are the foundation for a firms competitive advantage
- Can be applied in a wide variety of markets
- It is difficult to imitate
Name the three key management questions
- Value exploration (How to identify new opportunities?)
- Value creation (How to efficiently create new value?)
- Value delivery (How to deliver the new value?)
What four organisational levels do most large companies consist of?
- Corporate
- Division
- Business unit
- Product
Marketing plan definition
Summarises what is learnt about a market and how a firm plans to reach its objectives.
Directs and coordinates the strategic and tactical marketing effort.
What are the two types of marketing plans?
- The strategic marketing plan (lays out target markets, value proposition, focus on ‘new opportunities’)
- The tactical marketing plan (The actual tactics, product features, promotion, pricing, sales channels, etc. The ‘How’ of the marketing plan)
What are the three characteristics of the SBU (strategic business unit)?
- It is a single or a collection of related businesses, that can be planned separately from the rest of the company
- Has its own set of competitors
- Has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit.
Define the market penetrating strategy
To gain more market share with current products in current markets
Define market development strategy
To find or develop new markets for current products
Define product development strategy
To consider developing new products of potential interest for its current markets
Define diversification strategy
To review opportunities to develop new products for new markets
What are the three options for increasing sales and profits?
- Intensive growth opportunities
- Integrative growth opportunities
- Diversification growth opportunities
Define integrative growth opportunities
To try to increase sales and profits through backward (acquiring supplier), forward (acquiring distributor) or horizontal (acquiring competitor) integration
What four strategies belong to the intensive growth strategy for increasing sales and profits?
Market penetration strategy
Market development strategy
Product development strategy
Diversification strategy
What does the vertical sphere indicate?
The number of channels levels in which a company will participate from raw materials to final product.
What does a hollow corporation mean?
Hollow corporations outsource the production of nearly all goods and services.
Define the corporate culture
The shared experiences, stories, beliefs, and norms that characterise an organisation.
What is an environmental threat?
They are challenges posed by unfavourable trends or developments that in the absence of defensive marketing actions would lead to lower sales or profit.
Most business units pursue a mix of objectives like growth or market share improvement. The objectives are set and then ‘managed by objectives’ (MBO). What is required for an MBO to work? (4)
The unit objectives need to be;
- Arranged hierarchically
- Quantitive whenever possible
- Realistic
- Consistent
Define strategy
The creation of a unique and valuable position involving a different set of activities.
Strategy is essentially a game plan for getting to an objective or achieving a goal.
