02 - Company & Marketing Strategy

Question 1

marketing’s role

Answer 1

encourage management to:

• reflect on past, present + future of company
• better define objectives + policies = improve coordination of company’s efforts
• study performance standards
• help company anticipate changes + respond quickly

Question 2

strategic planning

Answer 2

process of developing + maintaining a strategic fit between the organization’s goals + capabilities and its marketing opportunities

Question 3

steps in strategic planning

Answer 3

1. define company mission
2. set company objectives + goals
3. design business portfolio
4. plan marketing + other functional strategies

Question 4

mission statement

Answer 4

• states long term purpose of company
• reflects strategic objective + position in market + differentiation
• welcomes values + culture of organization

Question 5

characteristics of a marketing oriented mission

Answer 5

• specific + meaningful
• motivating
• emphasize strenghts
• shouldn’t be myopic
• shouldn’t be defined as something to earn profit

Question 6

setting company objectives

Answer 6

process of turning its mission into supporting objectives

marketing

• increase market share
• create local partnerships
• increase promotion

business

• improve profits
• build profitable customer relationships
• invest in research

Question 7

current portfolio analysis

Answer 7

process by which management evaluates the products and businesses that make up the company

1. identify SBUs
2. assess each SBU + determine how much support each deserves
3. develop growth strategies for adding new SBUs to the portfolio

Question 8

designing the business portfolio - business portfolio planning

Answer 8

1. analyze its current business portfolio
2. determine which businesses should receive more, less, or no investment.
3. shape the future portfolio by developing strategies for growth and downsizing

Question 9

SBU

Answer 9

strategic business unit

• has a separate mission and objectives that can be planned independently
• ex: company division, product line/brand…

Question 10

methods of evaluating SBUs

Answer 10

1. attractiveness of market/industry of SBU

2. strength of position of SBU in market/industry

Question 11

best known portfolio planning method

Answer 11

BCG Growth-Share Matrix

(x,y)

• x: market attractiveness (market growth rate)
• y: company’s market share

star = (high, high) - will eventually become cash cows
cash cow = (low, high)
? = (high, low)
dog = (low, low)

Question 12

BCG Growth-Share Matrix method

Answer 12

company invests funds from cash cows to support stars and question marks, hoping to turn them into future cash cows

Question 13

limitations of BCG Growth-Share Matrix

Answer 13

• time consuming + costly
• difficult to define SBUs + measure market share and market growth
• provide little advice for future planning

Question 14

growth opportunities

Answer 14

market development = new markets for current products (new market segments)

product development = new/modified products for existing markets

market penetration = sales efforts to increase market share w/out altering products

diversification = new products in new markets

Question 15

downsizing

Answer 15

remove or reduce business areas that are not profitable or no longer meet company’s strategy

Question 16

value chain

Answer 16

series of internal departments that carry out value-creating for a firm’s products

activities: design, produce, market, deliver + support
- partnership b/w them is key

Question 17

value delivery network

Answer 17

composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the delivery of customer value

Question 18

marketing strategy

Answer 18

logic by which the company hopes to create customer value and achieve profitable customer relationships

Question 19

customer value-driven marketing strategy

Answer 19

• market segmentation
• market targeting
• market positioning
• market differentiation

Question 20

marketing mix

Answer 20

set of tactical marketing tools that are integrated in order to engage target customers + deliver intended customer value

consists of 4 variables:

• product
• price
• place
• promotion

Question 21

marketing management functions

Answer 21

1. analysis - SWOT
2. planning - strategies + objectives
3. implementation
4. organization
5. control - evaluating results

Question 22

marketing department organization

Answer 22

functional organization

geographic organization

product management organization

market/consumer management

Question 23

marketing control

Answer 23

operating - checking performance against plan and taking corrective action if necessary

strategic - looking at whether the company’s basic strategies are well matched to its opportunities

Question 24

ROI

Answer 24

return on marketing investment

• net return from marketing investment / marketing investment cost
• can be in dollars
• other returns are harder to measure: engagement, brand building…

Question 25

main components of a marketing plan (8)

Answer 25

executive summary current marketing situation threats and opportunities analysis objectives and issues marketing strategy action programs budgets controls