chapter 2 Flashcards
define strategic planning
developing a strategic fit between organizations goals/capabilities and its changing marketing opportunities.
describe the company-wide strategic planning
- define mission
- setting goals and objectives
- design business portfolio
- planning other mkt startegies
define mission statement
organizations purpose
product vs market oriented business definition
P–> ´´we sell coffee´´
M–> we sell ´´the starbucks experience´´
business vs marketing objectives
Business: increasing sales, improving profits
Marketing: increase market share, increase promotion.
define business portfolio
collection of businesses +products making up a company
define portfolio analysis
activity in strtegic planning where products and businesses are evaluated
How to plan the business portfolio:
- analyze current business portfolio+ find out which businesses should receive more, less or no investment.
- shape future–> develop strategies and growth/downsizing.
How to analyze the current business portfolio
- identify strategic business units (SBU´S) makign up company
- assessing SBUS attractiveness
- decide how much support each SBU deserves
strategic business units can be
- single product
- company division
- product line within division
The BCG growth-share matrix
- stars: high growth, high share businesses/products
- cash cows: low-growth, high-share businesses
- question marks: high-growth, low share
- dogs: low-growth, low-share
problems with matrix approaches
- difficult to undertake
- time consuming
- costly
- may not apply well to certain markets with structural changes.
the product/market expansion grid
- uses to identify growth opportunities
- developing new markets for existing products (market development)
- existing markets/existing products (market penetration)
- developing new product’s in existing markets (product development)
- new products and new markets (diversification)–> buying businesses outside market
downsizing definition:
company must eliminate buisnesses that are unprofitable/no longer fit startegy
define value chain
- each department has a value-creating activity to design, produce, market, deliver and support firms products.
- also partner with other company departments to have more sails+customer relationships
define value delivery network
- suppliers, distributors, customers partnering with each other to improve performance of entire system.
describe the marketing strategy and marketing mix
- segmentation/targeting: ´´Which customers will we serve´´
- differentiation/positioning: ´´how will we create value´´
- marketing mix (the 4PS)– >intended value for customers
- creating customer value +building profitable customer relationships
define marketing strategy
- mkt logic focused to create customer value+achieve profitable customer relationships.
define market segmentation:
dividing market into different groups of buyers with distinct needs, behaviour’s, characteristics
define market segment
group of consumers respond similarly to marketing efforts
define market targeting
- evaluating segments and choosing which segment to enter
define positioning
- arranging for product to occupy a distinctive place relative to competing products in minds of target customers.
- distinguishing products from competing brands–> standing out
define brand audit
- examination of a brands current position in market compared to competition
- strengths+weaknesses of brand/ opportunities for improvements
explain differentiation
- differentiating company´s marketing offerings to create superior customer value compared to competition.
define marketing mix
4PS
price
place
product
promotion
define swot analysis
evaluates:
1. Strength’s (internal capabilities)
2. weaknesses (internal limitations interfyung with objectives)
3. opportunities (external factors favoring company
4. threats (external factors challenging)
how to manage the marketing effort
- planning (develop strategic plans)
- implementation and organisation: (carry out the plans) PLANS–> ACTIONS
- control: measuring and evaluating results +taking corrective action if needed
define marketing plan
documents helping reach long-term strategical goals by focusing in one year
The parts in a marketing plan
- executive summary
- current marketing situation
- SWOT
- objectives and issues
- marketing strategy
- execution plans
- budgets
- controls
arrangement of marketing departments
- functional organisation
- geographic organization
- product management organization
- market/customer organization.
define marketing implementattion
- turning PLANS into ACTIONS
four steps in marketing control
- setting mkt goals
- measuring performance in marketplace
- evalauting current and expected performance
- take corrective action if needed
operating vs strategic control
operating–> checking ongoing performance against annual plan
strategic—> looking if strategies are well matched to the opportunities
define marketing ROI
- net return from marketing investment divided by cost of investment
- measures profits made through investments
