Chapter 2 Flashcards
What is strategic planning?
Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.
What is a mission statement?
The mission statement is the organization’s purpose; what it wants to accomplish in the larger environment.
What are four key questions a mission statement should answer?
What is our business?; Who is the customer?; What do consumers value?; What should our business be?
Give three examples of business objectives.
Build profitable customer relationships; Invest in research; Improve profits
Give three examples of marketing objectives.
Increase market share; Create local partnerships; Increase promotion
What are three key roles of marketing in strategic planning?
Providing a guiding philosophy (the marketing concept); Identifying attractive market opportunities and assessing the firm’s potential; Designing strategies for reaching the unit’s (division/product line/product) objectives
What is a value chain?
Value chain is a series of departments that carry out value creating activities to design, produce, market, deliver, and support a firm’s products.
What is a value delivery network?
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.
What is marketing strategy?
Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
What is market segmentation?
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.
What is a market segment?
Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.
What is market targeting?
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
What is market positioning?
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.
What is differentiation?
Differentiation begins the positioning process.
What is a marketing mix?
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.
List elements of the ‘Product’ component of the marketing mix.
Variety; Quality; Design; Features; Brand name; Packaging; Services
List elements of the ‘Price’ component of the marketing mix.
List price; Discounts; Allowances; Payment period; Credit terms
List elements of the ‘Place’ component of the marketing mix.
Channels; Coverage; Locations; Inventory; Transportation; Logistics
List elements of the ‘Promotion’ component of the marketing mix.
Advertising; Personal selling; Sales promotion; Public relations; Direct and digital
Name the eight parts of a marketing plan.
Executive summary; Marketing situation; Threats and opportunities; Objectives and issues; Marketing strategy; Action programs; Budgets; Controls
