Chapter 3: Strategic Marketing Flashcards
(23 cards)
What is ‘business planning’?
Anticipating future events and determining strategies to achieve organizational objectives in the future
- Should happen at the strategic and tactical levels
What is ‘strategic planning’?
Establishing the organization’s objectives and determining how to achieve them given internal resources and the evolving marketing environment
What is the goal of strategic planning and what does it require?
Goal = Long-run profitability and growth
Requires: Long-term commitments of resources
What three levels does strategic planning take place?
- Corporate: Sets direction and scope through its mission statement, identification of key business opportunities and constraints, and allocations of resources
- Business: Takes place at the strategic business unit (SBU) level. The goal is to gain a competitive advantage
- Marketing: Target market and marketing mix activities
How do you obtain maximum advantage for the business and customers?
Common corporate goals and interdependent business strategies must be coordinated
What is the ‘marketing environment’?
Entire set of situational conditions, both internal (strengths & weaknesses) and external (opportunities & threats), within which a business operates
What are ‘strategic business units’?
Subgroup of a business or a collection of related businesses within the larger organization
- Should have a distinct mission and specific target market
What is the difference between strategic vs tactical business planning?
Strategic
- Made at all three levels
- Wider in scope
- Long-term
- Affect long-run course, allocation of resources, and financial success
Tactical
- Made at the operational or marketing level
- Narrow in scope
- Short-term
- Limited impact of long-run profitability
- Directed from strategic decisions made at the corporate level
What is a ‘Marketing Plan’?
How a company undertakes its strategic planning process
- Each step develops a clear and actionable strategy
What is the foundation of any strategic decision and marketing plan?
Mission statement
What is a ‘mission statement’?
Statement of business’ value based on a careful analysis of benefits sought by present and potential customers and an analysis of environmental conditions
- What value do we provide for customers
- Benefits sought?
- Environmental conditions?
- Creates boundaries for all decisions
What should a mission statement focus on?
The markets organization is attempting to serve, rather than on goods or services offered
How do you set an organization’s strategic decision?
By performing a SWOT analysis
What is a ‘SWOT Analysis’?
Identifying internal environment of strengths and weaknesses, as well as external environment opportunities and threats.
What is ‘environmental scanning’?
Collection and interpretation of info about the external environment that may affect the future of the organization or implementation of the marketing plan
What are the four strategic opportunities in the’ Ansoff’s strategic opportunity matrix’?
- Market penetration: Increases market share among existing customers by using existing products
- Market development: Attracting new customers to existing products
- Product development: Creation of new products for current customers
- Diversification: Increasing sales by introducing new products into new markets
How do you create a business plan for a competitive advantage?
Complete a SWOT Analysis to:
- achieve a sustainable competitive advantage
- identify core competencies
What is a ‘competitive advantage’?
Unique features of a company and its products that are perceived by the ‘target market’ as significant and superior to the competition
i.e. - Cost
- Differentiation [Product/Service]
- Niche strategies
What is the ‘cost competitive advantage’?
Low-cost competitor in an industry while maintaining profit margins
What is the ‘product differentiation competitive advantage’?
Unique benefit that is valuable to buyers beyond simply offering a low price
Unique benefit + Of Value to Consumer = Product Differentiation
What is a ‘niche competitive advantage’?
Serving the needs of a single segment that has good growth potential but is not crucial to the success of the major competitors
- Geographic niche
- Product niche
-Small companies with limited resources can benefit
What is a ‘sustainable competitive advantage’
Advantage that can’t be copied, but can be sustained by the competition
- Marketers need to focus on skills and assets to sustain the competitive advantage
