Chapter 2 - Marketing Strategy Flashcards
(32 cards)
Strategic Planning
- Long term (usually 1 or more years)
- Done by top management w/ conceptual skills
- Matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival.
Tactical Planning
- Short term
- Middle Management w/ human skills.
- Developing detailed plans for strategies and tactics for the short term that support the long term plan.
Operational Planning
- Day to Day Planning
- Supervisory Management w/ technical skills
Business Plan
A plan that includes the decisions that guide the entire organization.
SBU’s
- Strategic Business Units
- Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.
Contingency Planning
- A backup plan
- Reactive (If x, then y)
- Proactive (preventative)
- Logical approach is proactive, but reactive may be better.
Cross-functional planning
Managers work together in developing tactical plans for each functional area in the firm so that each plan considers the objectives of the other areas.
Marketing Strategy
- SWOT Analysis (strengths and weaknesses)
- Mission Statement (fundamental purpose)
- Segment/Target (break market up and decide on target customer)
- Positioning (About the image and mind of the customer)
- Marketing Mix (4 P’s = last step)
Mission Statement
A formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.
- Should guide all planning and actions
- Important to identify the industry you’re in.
Business Portfolio
The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.
Portfolio analysis
A tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units.
BCG Growth-Market Share Matrix
- Focuses on the potential of a firm’s existing successful products to generate cash that the firm can then use to invest in new products.
- Helps decide if keep or rid a customer
- Market Growth Rate & Market Share
1. High, High = Stars (large revenue)
2. High, Low = Question Marks (failed to compete)
3. Low, High = Cows (competitors don’t enter)
4. Low, Low = Dogs (specialized products)
SWOT Analysis
- Strengths and weaknesses are internal
- Opportunities and threats are external
Internal Environment
The controllable elements inside an organization including its people, facilities, and how it does things that influence the operations of the organization.
External Environment
The uncontrollable elements outside of an organization that may affect its performance either positively or negatively.
Competitive Advantage
The ability of a firm to outperform the competition, thereby providing customers with a benefit the competition can’t.
Distinctive Competency
A superior capability of a firm in comparison to its direct competitors.
Differential Benefit
Properties of products that set them apart from competitors’ products by providing unique customer benefits.
Marketing Myopia
- To define self by product
- Very mindset, don’t consider the industry that they are in. Only focus on the product at hand.
Positioning
- The image and mind of the customer.
- What comes to mind.
Product-Market Growth Matrix
4 strategies based on the market and product emphases (existing and new):
- EE = MARKET PENETRATION
- EN = PRODUCT DEVELOPMENT
- NE = MARKET DEVELOPMENT
- NN = PRODUCT DIVERSIFICATION
Market Penetration
Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.
Market Development
Growth strategies that introduce existing products to new markets.
Product Development
Growth strategies that focus on selling new products in served/existing markets.
