Ch 2 Flashcards
The managerial process of creating and maintaining a ft between the organizations objectives and resources and the evolving market opportunities
Strategic planning
What is the goal of strategic planning?
Long-run profitability and growth
A subgroup of a single business or collection of related businesses within the larger organization
Strategic Business Unit (SBU)
Alternative theory which matches products with markets
Ansoff’s strategic opportunity matrix
Marketing strategy that tries to increase market share among existing customers
Market penetration
Marketing strategy that entails attracting new customers to existing products
Market development
Marketing strategy that entails the creation of new products for present markers
Product development
Strategy of increasing sales by introducing new product s into new markets
Diversification
What are the four sectors of Ansoff’s matrix?
1) Market penetration
2) Market development
3) Product development
4) Diversification
These decisions implement changes that use existing assets to provide added convenience to existing customers
Core innovation
These decisions are designed to take company strengths into new markets
Adjacent innovation
These decisions result in brand new markets, products, and often new businesses
Transformational innovation
A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
Portfolio matrix
A fast-growing market leader
Star
SBU that generates more cash than needed to maintain its market share
Cash cow
Shows rapid growth but poor profit margins
Problem child (question mark)
Has slow growth potential and a small market share
Dog
The process of anticipating future event and determining strategies to achieve organizational objectives in the future
Planning
Designing activities relating to marketing objectives and the changing market environment
Marketing planning
A written document that acts as a guidebook of marketing activities for the marketing manager
Marketing plan
Defining a business in terms of goods and services rather than in terms of benefits customers seek
Marketing myopia
Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the market plan
Environmental scanning
Being the low cost competitor in an industry while maintaining satisfactory profit margins
Cost competitive advantage
Curves that show declining at a predictable rate as experience with a product increases
Experience curves
A unique blend of product, place, promotion, and pricing
marketing mix (four P’s)
