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International Marketing > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Strategic planning

A

The process of the developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities

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2
Q

Mission statement

A

A statement of the organisation’s purpose - what it wants to accomplish in the larger environment

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3
Q

What should the mission statement be about?

A

Mission statements shouldn’t be focused on the products itself (myopia), but rather in terms of satisfying the customers’ needs and wants

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4
Q

Setting Company Objectives and Goals

A

The company should turn its mission statement into detailed
supporting objectives for each level of management

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5
Q

Business portfolio

A

The collection of businesses and products that make up the company

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6
Q

TWO steps in planning business portfolios

A

Analyse the company’s current business portfolio and determine which businesses should receive more or less resources/investment

Shape the future portfolio by developing strategies for growth and downsizing

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7
Q

Portfolio analysis

A

The process by which management evaluates the products and businesses that make up the company

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8
Q

Strategic business units

A

Key businesses that make up the company

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9
Q

TWO ways to evaluate SBUs

A

Attractiveness of SBU’s market or industry

Strength of the SBU’s position in their market or industry

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10
Q

A matrix that classifies SBUs into four categories based on two criteria

A

Market growth rate

Relative market share

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11
Q

Stars

A

High growth rate & high market share

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12
Q

What do stars need?

A

Stars require heavy investment to finance their rapid growth

Growth will eventually plateau and they will turn into cash cows

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13
Q

Cash cows

A

Low growth rate & high market share

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14
Q

What do cows need?

A

Requires little investment as it is already well-established

Generates capital to be invested in other SBUs and operating costs

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15
Q

Question marks

A

High growth rate & low market share

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16
Q

What do question marks needs?

A

Requires a lot of investment to hold current position, even more to increase it

Management has to decide which ones to keep and which to phase out

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17
Q

Dog

A

Low growth rate and low market share

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18
Q

What does dog need?

A

Generate enough money to sustain themselves but do not promise to be large sources of cash

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19
Q

FOUR actions to be taken by management for SBUs

A

Build

Hold

Harvest

Divest

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20
Q

Build

A

Invest more into the SBU and build its shares

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21
Q

Hold

A

Invest just enough to hold the SBU’s shares at current level

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22
Q

Harvest

A

Milk the SBU’s short-term cash flow regardless of long- term effects

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23
Q

Divest

A

Selling or phasing out the SBU, using its resources elsewhere

24
Q

Problems with Matrix Approaches

A

It is difficult to measure market growth rate and market share accurately

These approaches focus only on classifying current businesses but
don’t provide much advice for future planning

Centralised strategic planning is costly, time-consuming, and difficult to implement

25
Q

Product/market expansion grid

A

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

26
Q

Market development

A

Company growth by identifying and
developing new market segments for current company products

27
Q

Product development

A

Company growth by offering modified or new products to current market segments

28
Q

Diversification

A

Company growth through starting up or acquiring
businesses outside the company’s current products or markets

29
Q

Value chain

A

The series of internal departments that carry out value- creating activities to design, produce, market, deliver, and support a firm’s products

30
Q

Value delivery network

A

A network composed of the company,
suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

31
Q

Marketing strategy

A

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

32
Q

Market segmentation

A

Dividing a market into distinct groups of
buyers who have different needs, characteristics, or behaviours and
who might require separate marketing strategies or mixes

33
Q

Market segment

A

A group of consumers who respond in a similar way
to a given set of marketing efforts

34
Q

Market targeting

A

Evaluating each segment’s attractiveness and
selecting one or more segments to serve

35
Q

Nicher

A

A company that serves only one or a few special segments or
market niches

Companies usually enter a new market by serving a single segment,
they will add more segments if the first proves successful

36
Q

Positioning

A

Arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target
consumers

37
Q

With what does effective positioning with?

A

Differentiation

38
Q

Marketing mix

A

The set of marketing tools - product, price, place, and promotion – that the firm blends to produce the response it wants in the target market

39
Q

Product

A

The market offering provided to the market by a company

40
Q

Price

A

Amount of money required for the consumer to acquire the market offering

41
Q

Place

A

Company activities that make the product available to target consumers

42
Q

Promotion

A

Activities that communicate the benefits and merits of the products and persuade the customers to buy it

43
Q

Critics believe that the 4 P’s omit or underemphasise certain activities:

A

Does not discuss services

Does not discuss packaging

It is is seller focused and not customer focused

44
Q

FIVE processes required for effective management of marketing

A

Analysis

Planning

Implementation

Organisational

Control

45
Q

What does a SWOT analysis offer

A

A better understanding of the company’s situation

46
Q

Marketing implementation

A

Turning marketing strategies and plans
into marketing actions to accomplish strategic marketing objectives

Since everything is more connected now, more parties are required to
coordinate in order to successfully implement a strategic plan

47
Q

Marketing Department Organisation

A

A company must design a marketing organisation that can carry out marketing strategies and plans

48
Q

4 ways for the marketing departments

A

Functional organisation

Geographic organisation

Product management organisation

Market or customer management organisation

49
Q

Functional organisation

A

Different marketing activities are headed by a functional specialist – sales manager, advertising manager…

50
Q

Geographic organisation

A

Assigning sales and marketing people to specific countries, regions, and districts, often used by companies selling goods across countries and internationally

51
Q

Product management organisation

A

Used by companies with many different products and brands

52
Q

Market/customer management organisation

A

Used by companies who sell one product line to many different types of markets and customers who have different needs

53
Q

Marketing control

A

Measuring and evaluating the results of
marketing strategies and plans and taking corrective action to ensure
that the objectives are achieved

54
Q

FOUR steps to marketing control

A

Set specific marketing goals

Measure performance

Determines causes for any difference between expectation and performance

Take corrective action

55
Q

Marketing return on investment (ROI)

A

The net return from a marketing investment divided by the costs of the marketing investment

Return may be measured by brand awareness, social media response, sales, or market share

International Marketing (13 decks)

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