Chapter 15 Flashcards
Strategic Direction [Definition]
What an oganization hopes to achieve, and how they plan to achieve it. All organizations should have a strategic direction
3 Levels of Strategy in an Organization?
- Corporate Level
- Business Unit
- Functional Level
Strategy [Definition]
An organization’s long-term plan designed to deliver a unique customer experience while achieving organizations goals. Once defined, develop a marketing plan
Purpose of a Business Plan
Helps identify SWOT & Develop accurate financial forecasts
Marketing Metric [Definition]
measure of quantitative value or trend of marketing activity or result.
Business Plan [Definition]
Document to help convey the value to the company
Questions to ask when setting strategic direction
Where are we now?
Where do we want to go?
How will we get there?
Business Portfolio Analysis [Definition]
Uses quantified performance measures and market growth rates to analyze Firm’s strategic business units as though they are separate investments.
What are the 4 Quadrants of growth/share matrix?
- Cash Cow
- Stars
- Question Marks/Problem Children
- Dogs
Cash Cow (related to growth/share matrix)
Generate large profit, more than they can invest in a product line (high market share, low growth)
Stars (related to growth/share matrix)
High share of high growth markets, may need extra to finance rapid growth
High market share + high growth
Question Marks/Problem children (related to growth/share matrix)
Low share of high market. Require large injections of cash
Low market share + high market growth
Dogs (related to growth share matrix)
Generate enough cash to sustain, but no promise of being real winners
Low market share + low market growth
Market product analysis
Viewing growth in terms of new opportunity
- Vertical axis: current market vs. New market
- horizontal axis: current product vs new product
Market penetration [definition]
Increasing sales of existing product in existing market
