Chapter 2 Flashcards
strategic planning
the process of developing and maintaing a strategic fit between the organisations goals and capabilities and tis changing marketing opportunities
mission statement
statement of the organisations purpose- what it wants to accomplish in the larger environment
- should be market oriented and defined in terms of satisfying basic customer needs
business portfolio
the collection of businesses and products that make up the company
strategic business units
SBU, can be a company division, product line within a division, or single product or brand
growth-share matrix
a portfolio-planning method that evaluates a companies SBU’s in terms of market growth rate and relative market share (Star, Question Mark, Cash cow, dog)
market growth rate
measure of market attractiveness
relative market share
a measure of company strength in the market
stars
need heavy investment to finance their rapid growth, eventually growth will slow down and they will turn into cash cows
cash cows
need less investment to hold their market share; produce a lot of cash
question marks
require a lot of cash to hold their share and increase it, have to decide which to move to stars and which to phase out
dogs
generate enough cash to maintain themselves but do not promise to be large sources of cash
problems with BCG
difficult, time-consuming and costly to implement
not much information about future
product/market expansion grid
tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
market penetration
making more sales to current customers without changing its original products
product/market expansion grid
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market development
company growth by identifying and developing new market segments for current company products
product development
company growth by offering modified or new products to current market segments
diversification
company growth through starting up or acquiring businesses outside the companies current products and markets
value chain
departments that carry out value-creating actives to design, produce, market, deliver, and support a firms products
value delivery network
the network made up of the company, its suppliers, its distributors, and customers who partner with each other to improve the performance of the entire system
marketing strategy
the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate products or marketing programs
market segment
consists of consumers who respond in a similar way to a given set of marketing efforts
market targeting
involves evaluating each market segments 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
marketing mix
product, price, place, promotion (takes the sellers view and not the buyers)
marketing implementation
the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives
marketing department organisation
functional, geographic, product management, market or customer management
marketing control
evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained
return on marketing investment (ROI)
the net return from a marketing investment divided by the costs of the marketing investment; it measures profits generated by investments in marketing activities
