Chapter 2 ("Strategic Planning") Flashcards Preview

MKC1 - Fundamentals of Marketing and Business Communication > Chapter 2 ("Strategic Planning") > Flashcards

Flashcards in Chapter 2 ("Strategic Planning") Deck (33)
Loading flashcards...
1

target markets

groups of customers

Firms typically identify different target markets they want to reach when they are developing their value propositions.

2

value proposition

A value proposition is a thirty-second “elevator speech” stating the specific benefits a product or service offering provides a buyer. It shows why the product or service is superior to competing offers.

3

strategic planning

Strategic planning can occur at 3 different levels in an organization:

Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace.

Strategic planning can occur at different levels (corporate, business, and functional) in an organization. The number of levels may vary. However, if a company has multiple planning levels, the plans must be consistent, and all must help achieve the overall goals of the corporation.



Corporate Level: PepsiCo, Inc.

Business Level: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo International

Functional Level: Marketing Department, Accounting Department, HR Department

4

contract manufacturing

When companies hire manufacturers to produce their products in another country.

5

strategic planning process

A process that helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, and be competitive in a market-driven economy.

6

franchising

Granting an independent operator the right to use your company’s business model, techniques, and trademarks for a fee.

7

export

Sell products to buyers in foreign markets.

8

General Electric (GE) approach

A portfolio planning approach that examines a business’s strengths and the attractiveness of industries.

9

portfolio

A group of business units owned by a single firm.

10

joint venture

An entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.

11

product development strategy

Creating new products or services for existing markets.

12

corporate level plans

Plans developed for the corporation as a whole take place at the corporate level.

13

portfolio planning approach

An approach to analyzing various businesses relative to one another.

14

situation analysis

An assessment of an organization’s internal and external environments.

15

harvest

When a firm lowers investment in a product or business.

16

direct investment

Owning a company or facility overseas.

17

green marketing

Marketing environmentally safe products and services in a way that is good for the environment.

18

second-mover strategy

Corporate level strategy theorizing that closely observing the innovations of the first movers, and then improving on them can help an organization gain advantage in the marketplace.

19

marketing plan

A document that is designed to communicate the marketing strategy for an offering. The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.

20

business level plans

Plans developed for each strategic business unit typically have their own mission statement.

21

star

Business or offering with high growth and a high market share.

22

market penetration strategy

Selling more of existing products and services to existing customers.

23

cash cow

Business or offering with a large share of a shrinking market.

24

divest

When a firm drops or sells a product or business.

25

diversification strategy

Offering products that are unrelated to other existing products produced by the organization.

26

first-mover strategy

Corporate level strategy theorizing that being the first organization to offer a product in the marketplace will be the long-term market leader.

27

SWOT analysis

An acronym for strengths, weaknesses, opportunities, and threats, the SWOT analysis is a tool that frames the situational analysis.

例)
S: Firm's Brand Name and resources
W: Low Product Awareness, Poor Facility Allocation
O: Demand for Product, Size and Market
T: Bad Economy, Competitors

28

dog

Business or offering with low growth and a low market share.

29

question marks or problem children

Businesses or offerings with a low share of a high-growth market.

30

market development strategy

Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.