chapter 2 Flashcards
is a clear, concise, and enduring statement of the reasons for an organization’s exis-
tence
mission
Often referred to as its core purpose, is a long-term goal that provides com-
pany employees and management with a shared sense of purpose, direction, and opportunity
mission
Good mission statements have five major characteristics.
- They focus on a limited number of specific goals.
- They stress the company’s major policies and values.
- They define the major markets that the company aims to serve.
- They take a long-term view.
- They are as short, memorable, and meaningful as possible.
define it as “the shared experiences, stories, beliefs, and norms that characterize an organization
corporate culture
strategic business unit (SBU) has three characteristics:
(1) It is a single business, or a collection of related businesses, that can exist separately from the rest of the company
(2) It has its own set of competitors
(3) It has a manager responsible for strategic
planning and profit performance, who controls most of the factors affecting profit.
involves SBUs with fairly narrow assortments consisting of one or a few
product lines.
specialized portfolio
involves SBUs with fairly broad assortments containing multiple product lines
diversified portfolio
involves choosing a well-defined market in which the company will compete and determining the value it intends to create in this market.
Strategy
also called the marketing mix, make the
company’s strategy come alive: They define the key aspects of the offering developed to create value in a given market
Tactics
Marketing strategy incorporates two key components: the target market in which the company will
compete and the value proposition for the relevant market entities—the company, its target customers,
and its collaborators.
The target market in which a company aims to create and capture value comprises five factors: the customers whose needs the company intends to fulfill, the competitors that aim to fulfill the same needs of the same target customers, the collaborators that
help thecompany fulfill the needs of customers, the company that develops and manages the offering, andthe context that will affect how the company develops and manages the offering.
A successful offering must create superior value not only
for target customers but also for the company and its collaborators. Accordingly, when developing
market offerings for the relevant entities in the market exchange, a company needs to consider all three
types of value: customer value, collaborator value, and company value
Developing a Value Proposition.
the worth of an offering to its customers and hinges on customers’ assessment of how well an offering fulfills their needs
Customer value
the worth of an offering to the company’s collaborators. It sums up all benefits and costs that an offering creates for collaborators and reflects how attractive an offering is to collaborators
Collaborator value
is the worth of the offering to the company. The value of an offering is defined relative to all benefits and costs associated with it, its affinity with the company’s goal(s), and the value of other opportunities that could be pursued by the company
Company value
balances the value for customers, collaborators, and the company
Optimal value proposition
The value of the offering is connected across the three entities, such that it creates value for target customers and collaborators in a way that enables the company to achieve its strategic goals.
Optimal value
the actual good that the company deploys in order to fulfill a particular customer need
Market offering
Marketing managers have seven tactics at their disposal to develop an offering that creates market value: product, service, brand, price, incentives, communication, and distribution. Also called the:
Marketing mix
these seven attributes (also referred to as tactics or Ts) represent the combination of activities required to transform the market offering’s strategy into reality
Marketing mix
