Ch 2 Flashcards
Strategic Planning
Process of developing & maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
- Selects an overall company strategy for long-run survival & growth
- Sets stage for the rest of the planning in the firm (future)
Steps of Strategic Planning
1) Defining a Marketing-Oriented Mission
2) Setting company Objectives & Goals
3) Designing the Business Portfolio
4) Planning Marketing and Other functional strategies
Mission Statement
Organization’s purpose, what it wants to accomplish in the larger environment
Business Portfolio VS Business Portfolio Analysis
Business Portfolio: Collection of businesses & products that make up the company
Business Portfolio Analysis: A major activity in strategic planning where management evaluates the products & businesses making up the company
Strategic Business Units (SBU)
A unit of the company that has a separate mission & objectives that can be planned independently from other company businesses
Types of SBUs
Stars: golden child product
Cash cow: $ maker
?: potential future products, questionable
Dogs: Dead products
Product/Market Expansion Grid
A planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Market Penetration
Making more sales to current customers without changing its products
Product Development
Offering modified/new products to current markets
Market Development
Identifying and developing new markets for current customers
Diversification
When the company starts up or buys businesses outside of its current products and markets
4 Ps
(Sellers View)
Product
Price
Place
Promotion
4 Cs
(Buyer’s View)
Customer Solution
Customer Cost
Convenience
Communication
4 Marketing Functions
Marketing Analysis
Marketing Planning
Marketing Implementation
Marketing Control
