Chapter 2 (Kotler Armstrong) Flashcards
(23 cards)
Strategic Planning
The process of developing and maintaining a strategic fit between organization’s goals and capabilities and its changing market opportunities
Mission Statement
A statement of the organization’s purpose- what it wants to accomplish in the larger environment
(should be “market-oriented”
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
“Management’s first step is to identify the key businesses that make up the company, called Strategic Business Units (SBUs)”
Growth-share mix
Approach by Boston Consulting Group- A portfolio-planning method that evaluates a company's SBUs in terms of its market growth rate and relative market share. SBUs are classified as stars (high growth high share) cash cows (low growth, high share) question marks (high growth, low share) 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
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 (advertising crocs to senior consumers)
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 fit 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
Value delivery network
The network made up of the company, suppliers, distributors, and, ultimately, customers who “partner” with each other to improve the performance of the entire system
Marketing strategy
The marketing strategy by which the business unit hopes to create customer value and achieve profitable customer relationships
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Market Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more market segments to enter
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
“Why a shopper will pay a little more for your brand”
Differentiation
Actually differentiating the market offering to create superior customer value
Marketing mix (Four Ps)
The set of controllable tactical marketing tools- product, price, place, and promotion- that the firm blends to produce the response it wants in the target market
SWOT analysis
An overall evaluation of the company’s Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T)
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
Return on Marketing Investment (marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment
