Chapter 2 Flashcards
Strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Mission statement
A statement based on the companies purpose- what it wants to accomplish in the larger environment. This helps guide the people in the organization.
What are the 4 steps of strategic planning?
- Defining the company mission.
- Setting company objectives and goals.
- Designing the business portfolio.
- Planning marketing and other functional areas.
What is a business portfolio?
Business portfolio- the businesses and products that make up a company.
Portfolio analysis definition
—> Portfolio analysis- management analyzing the business portfolio.
What is the growth-share matrix?
This is a portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and a relative market share.
What is an SBU?
Strategic Business Unit (SBU)- it is a profit center which focuses on what products have to offer and market segmentation. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign.
Draw the growth-share matrix:
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Draw the product/market expansion grid:
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Why is the product/market expansion matrix important?
This is mainly because the main goal and responsibility of the marketing department is to increase profitable growth for the products the company is selling.
What is a value chain?
These are series of internal departments within a company which carry out value creating activities to produce, design, deliver, market, and support the firms products.
What is a value delivery network and what can a company do to improve it?
A value delivery network is a network composed of the company, customers, suppliers, and distributors who all partner to improve the performance of the entire system and generate value for the customer. To improve the overall system, it is important that the company does not only focus on the internal stakeholders, but also the external ones, such as the suppliers, distributors, and so on. This would improve the overall value delivery network.
What is a marketing strategy? (4 steps)
This is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. This has a 4 step process:
1. Market segmentation- the division of a market based on the needs, characteristics, or behaviors of customers and who would require different marketing strategies to acquire them as customers.
a. i.e. If Nike wants to sell a product to teenagers and people in their late 40s’, there are different appeals each of them have which makes it important for the market strategy to be altered to them individually.
2. Market targeting- this involves evaluating each market segment’s attractiveness and selecting one or more segments to serve.
3. Positioning- this is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.
4. Differentiation- this involves actually differentiating the market offering to create superior customer value in comparison to competitors.
a. i.e. Apple performs better than Samsung due to their customer experience and reliability, differing them from Samsungs strategy.
What are the 4 p’s or a’s in the marketing mix?
- Product
- Price
- Promotion
- Place
- Acceptability
- Affordability
- Awareness
- Accessibility
The 4 P’s and the 4 A’s result to the same thing
What is the marketing implementation?
Where the marketing strategies and plans are transformed into marketing actions to accomplish strategic objectives. An unsuccessful marketing strategy is useless which is why it is important to consider marketing implementation.
