Chapter 2 Flashcards
Strategic Planning
The process of developing and maintaing a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Mission Statement
Statement of the organization’s purpose; what it wants to accomplish in the larger environment
Business Portfolio
The collection of businesses and products that make up the company
Portfolio Analysis
The process by which management evaluates the products and businesses that make up the company
Growth Share Matrix
A portfolio planning method that evaluates a company’s SBUs in terms of its market growth rate and relative market share
Product/Market Expansion Grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Market Penetration
Company Growth by increasing sales of current products to current market segments without changing the prodcut
Market Development
Company Growth by identifying and developing new market segments for current company products
Product Development
Offering modified or new products to current markets
Diversification
Starting up or buying businesses beyond its current products and markets
Value Chain
The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
Value Delivery Network
The network made up of the company, suppliers, its distributers, and ultimately its customers who partner with each other to improve the performance of the entire system
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and how might require separate products or marketing programs
Market Segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Market Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering to create superior customer value
Marketing Mix
The set of tactical marketing tools; product, price, place, and promotion that the firm blends to produce the response it wants in the target market
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Strengths
Internal Capabilities, Resources, and positive situational factors that may help the company service its customers and achieve its objectives
Weaknesses
Internal limitations and negative situational factors that may interfere with the company’s performance
Opportunities
Favorable factors or trends in the external environment the the company may be able to exploit to its advantage
Threats
Unfavorable external factors or trends that may present challenges to performance
Marketing Implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Marketing Control
Measuring and evaluating the results of marketing strategies and plans taking corrective action to ensure that the objectives are achieved
Return on Marketing Investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment
