CH. 2 Flashcards
What is Strategic Planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies
What is a Mission Statement
A statement of the organization’s purpose - what it wants to accomplish in the larger environment
What is a Business Portfolio
The collection of business and products that make up the company
What is Portfolio Analysis
The process by which management evaluates the products and businesses making up the company
What is Growth-Share Matrix
A portfolio method that evaluates a company’s strategic business units in terms of their market growth rate and relative market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs
What is Market Penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product
What is Market Development
A strategy for company growth by identifying and developing new market segments for current company products
What is Product Development
A strategy for company growth by offering modified or new products to current market segments
What is Diversification
A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets
What is Downsizing
Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fill the company’s overall strategy
What is Value Chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
What is Value-Delivering 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.
What is Marketing Strategy
The marketing logic by which the business unit hopes to achieve its marketing objectives
What is Marketing Segmentation
Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
What is a Marketing Segment
A group of consumers who respond in a similar way to a given set of marketing efforts.
What is Marketing Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
What is Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
What is Marketing Mix
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.
What is Marketing Implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
What is Marketing Control
The process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved
What is Marketing Audit
A comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and to recommend a plan of action to improve the company’s marketing performance
What is Return on Marketing (or Marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment
Steps in strategic planning
defining the company mission, setting objectives and goals, designing the business portfolio, planning marketing and other functional strategies
What is Differentiation
Actually differentiating the market offering to create superior cusotmer value
What are the 4 p’s
Product, Price, Place, Promotion
What is the Product/Marketing Expansion Grid
A portfolio-planing tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
What is the SWOT analysis
An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T)
