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MKTG 201 > chapter 2 > Flashcards

chapter 2 Flashcards

company and marketing strategy

1
Q

objectives outline

A
  • explain company wide strategic planning and its four steps
  • discuss how to design business portfolios and develop growth strategies
  • explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value
  • describe elements of a customer value driven marketing strategy and marketing mix and the forces that influences them
  • explore the marketing management functions including marketing plan and
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2
Q

company wide strategic planning

A

1- strategic planning
2- defining market - orientated mission
3- setting company objectives and goals

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3
Q

< Company wide strategic planning > Strategic planning

A

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

company goals and competencies < – > changing marketing opportunities

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4
Q

steps in strategic media planning

A

defining company mission –> setting company objectives and goals –> designing the business portfolio –> planning marketing and other functional strategies

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5
Q

< Company wide strategic planning > Defining a market oriented mission

A

Mission statement = is the organizations purpose: what it wants to accomplish in the larger environment

example questions:
* What is our business?
* Who is the customer?
* What do consumers value?
* What should our business be?

examples of market oriented business definition

Starbucks: we sell coffee and snacks –> we sell the starbucks experience one that enriches peoples lives one moment one human being

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6
Q

Designing the business portfolio

A

business portfolio is the collection of businesses and products that make up company

portfolio analysis : evaluate the current business portfolio to decide how to allocate support between various product lines

portfolio design = shape the future portfolio ( growth / downsizing ) - product/ market expansion grid

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7
Q

strategic business units can be:

A

company division
product line within a division
single product or brand

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8
Q

analyzing the current bus. portfolio steps ( 3. )

A

identify strategic business units ( sbus - strategic business units )

asses the attractiveness of its various ( sbus - strategic business units )

decide how much support each sbu deserves

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9
Q

analyzing the current business portfolio - growth share matrix

A

Market growth rate high/low
Relative market share high/ low

stars = low market growth high market share

cash cows = high market share, low market growth

question marks = low market growth high market share

dog = low market share and low market growth

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10
Q

Stars

A

star = high growth high market share –> need heavy investment to finance their rapid growth eventually their growth will slow down and they will turn into cash cows
* High growth & share
* Profit potential
* May need heavy
investment to grow

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11
Q

cash cows

A

= low growth high market share –> these established and succsessful sbus need less inverment to hold their shape. they produce a lot of cash and this money is used to support other sbus that need inverment
*Low growth, high share
* Established, successful
SBU’s
*Produces cash
*HOLD: invest just enough

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12
Q

question marks

A

= high market growth low market share –> they require a lot of cash to hold their share let alone increase it
*IHigh growth, low share
* Build into Stars/ phase out
* Requires cash to hold
market share
Invest more to build
market share

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13
Q

dogs

A

dogs –> are low growth and low market share. They may generate enough cash to just maintain themselves but do not promise to be large sources of cash. Even if they break even financially, dogs can represent significant opportunity costs by absorbing managerial energy and attention that could be used more profitably elsewhere.
*Low growth & share
* Low profit potential

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14
Q

Investment decisions

A

build = invest more to build market share
hold = invest just enought to maintain current
harvest = milk the current cash flow regardless of long term effect
divest = sell / discontinue

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15
Q

Developing strategies for growth and downsizing ( product market expansion grid )

A

product market expansion grid = looks at new products, existing products , new markets, and existing markets for company growth opportunities

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16
Q

Developing Strategies for Growth and Downsizing

A

1- market penetration
2- market development
3- product development
4- diversification

17
Q

< Developing Strategies for Growth and Downsizing >

MARKET PENETRATION

A

definition = Company growth by increasing sales of current products to current market segments without changing the product.

example; In fact, Starbucks plans to grow to 55,000 stores in more than 100 markets by 2030, an increase of 75 percent from its current 34,000 stores. And improvements in Starbucks’s advertising, prices, service, store design, delivery platforms, or menu selection might en- courage customers to stop by more often, stay longer, or buy more during each visit.

18
Q

< Developing Strategies for Growth and Downsizing >

MARKET DEVELOPMENT

A

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

EXAMPLE: identifying and developing new markets for its current products.For instance, managers could review new demographic markets. Perhaps new groups—such as seniors—could be encouraged to visit Starbucks shops for the first time or to buy more from them. Managers could also review new geographic markets.

19
Q

< Developing Strategies for Growth and Downsizing >

PRODUCT DEVELOPMENT

A

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

For example, to capture a piece of the fast-growing single-serve beverage market, Starbucks developed Via instant coffee, and it sells its cof- fees and Tazo teas in K-Cup packs that fit Keurig at-home brewers. Starbucks continues to expand it lines of ready-to-drink beverages sold in grocery stores, such as Starbucks Coffee with Essential Vitamins, Starbucks Cold Brew Concentrate, and Starbucks Coffee with 2x the Caffeine.

20
Q

< Developing Strategies for Growth and Downsizing >

DIVERSIFICATION

A

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

EXAMPLE: tarting up or buying businesses beyond its current products and markets. For example, the company created the ultra-premium Starbucks Reserve brand, with Starbucks Reserve Roasteries and Starbucks Reserve Bars featuring high-end immersive experiences. Within its Starbucks Reserve loca- tions, the company is opening Princi Bakery and Café shops, offering artisan Italian food— from fresh-baked bread and pastries to flaky cornetti to focaccia sandwiches—based on the recipes of famed Italian baker Rocco Princi.

21
Q

Designing the Business Portfolio
Product / Market Expansion Grid

A
  • Market Penetration: increase sales to present customers (yours and
    competitors’) with current products.
  • How? Cut prices, increase advertising, get products into more stores.
  • Market Development: develop new markets with current products.
    How? Identify new demographic or geographic markets.
  • Product Development: offering modified or new products to current
    customers.
  • How? New styles, flavors, colors, or modified products.
  • Diversification: new products for new markets.
  • How? Start up or buy new businesses.
22
Q

<Designing>

DOWNSIZING
</Designing>

A

Downsizing is when a company must
prune, harvest, or divest businesses
that are unprofitable or that no
longer fit the strategy.

23
Q

< Planning Marketing: Partnering to Build
Customer Relationships >

VALUE CHAIN

A

Value chain is a series of departments
that carry out value-creating activities
to design, produce, market, deliver,
and support a firm’s products.

24
Q

< Planning Marketing: Partnering to Build
Customer Relationships >

VALUE DELIVERT NETWORK

A

Value delivery network is made up of
the company, suppliers, distributors,
and ultimately customers who
partner with each other to improve
performance of the entire system.

25
Q

< Planning Marketing: Partnering to Build
Customer Relationships >

MARKETING STRATEGY

A

Marketing strategy - is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

26
Q

Designing a Marketing Strategy
Which customers to serve? How to best serve them?

A

1- what is my target market
2- what is my value proposition

27
Q

[Marketing Strategy and the Marketing Mix]

Market segmentation - Market segment

A

Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.

Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.

28
Q

[Marketing Strategy and the Marketing Mix]

Market targeting - Market positioning - differentiation

A

Market targeting = is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Market positioning = is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Differentiation = begins the positioning process.

29
Q

Designing a Value Driven Marketing Strategy STEPS

A

segmentation –> targeting –> positioning

30
Q

Marketing mix

A

Marketing mix = is the set of controllable,
tactical marketing tools—product, price,
place, and promotion—that the firm
blends to produce the response it wants in
the target market.

Everything the firm can do to influence
demand for its product.

31
Q

SWOT analysis

A

An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T).

internal positive = strengths
internal negatives = weaknesses
external positives = opportunities
external negatives = threats

32
Q

Marketing Implementation

A

▪ Turning marketing strategies and
plans into marketing actions to
accomplish strategic marketing
objectives
▪ Addresses who, where, when, and
how

33
Q

marketing control

A

▪ Evaluating results
▪ Taking corrective action
▪ Operating control
▪ Strategic control

MKTG 201 (7 decks)

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