Chapter 2 Flashcards
Strategic Planning
The managerial process of creating and
maintaining a fit between the organization’s objectives and resources and evolving market opportunities
What is the goal when using marketing strategies?
To create Long-term growth and profitability
What are the three primary levels of market strategy?
1) Corp
2) Business Unit
3) Functional
SBU (Strategic Business Unit)
A subgroup of single business or a collection of related business
Do SBU’s have the same mission as their parent companies?
No they have a distinct mission, have control of resources, and has own competitors
Annsoff’s Strategic Opportunity Matrix
the concept of matching products with markets
Market Penetration (Ansoff’s)
Attempting to INCREASE market share in EXISTING costumer base using the same product
Market Development (Ansoff’s)
Bringing an EXISTING product into a NEW market
Product Development
Bringing a NEW product into the SAME market
Diversification
Bringing a NEW product into a NEW market
BCG Portfolio Matrix
A matrix used to determine the status of a company
Stars (BCG MATRIX)
Companies with high market growth rate and high relative market share. They usually have high profits, lots of competition, and require heavy investments
Cash Cows (BCG Matrix)
Companies with low market growth rate but high relative market share. Usually have no competition, don’t need investments, and produce alot of cash
Problem Child (BCG Matrix)
Companies with high market growth and low market share. Usually will build to stars or disappear. Require a lot of cash
Dogs (BCG Matrix)
Low market growth and low market share. usually have low profits and will discontinue
What are the 5 components of a mission statement?
1) Limited goals
2) values
3) Define competitive sphere
4) Long term goals
5) Short but meaningful/clear
The Marketing Plan
A written document that acts as a guidebook
of marketing activities for organization
4 Reasons to write a marketing plan?
Examines the marketing environment
Creates common awareness of marketplace factors
Establishes strategies and activities that work toward stated objectives
Basis for comparison of actual and expected performance
What 4 things considered in marketing mix?
Product, Price, promotion, distribution
Environmental Scanning
The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
What does SWOT stand for and what is the purpose?
S-Internal Strengths W-Internal Weaknesses O- External opportunity T- External Threats ** An analysis to understand current and potential environment in which the product or service is being marketed
Competitive Advantage
The set of unique features of a company and
its products that are perceived by the target market as significant and superior to the competition.
3 types of competitive advantage?
1) Cost
2) Product differentiation
3) niche
Cost Competitive Advantage
Being the low-cost competitor in an industry
while maintaining satisfactory profit margins
Product Differentiation
The provision of something that is superior and valuable to buyers beyond simply offering a lower price than the competition
Ex: Brand
Niche Competitive Advantage
The advantage achieved when a firm seeks
to target and effectively serve a small segment of the market
Sustainable Competitive advantage
Sustainable competitive advantage is an
advantage that cannot be copied by the
competition
Ex: Patent
Marketing Objectives
A statement of what is to be accomplished
through marketing activities
4 components of marketing objectives
1) Realistic
2) Measurable
3) Time specific
4) Consistent with org
5 purposes of marketing objectives?
- Communicate marketing management philosophy
- Provide management direction
- Motivate employees
- Force executives to clarify their thinking
- Allow for better evaluation of results
Marketing Strategy Development
The activities of selecting and describing one
or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets
Marketing Opportunity Analysis
The description and estimation of size and
sales potential of market segments the that are of interest to the firm and the assessment of key competitors in these market segments.
The marketing mix
A unique blend of product, place, promotion,
and pricing strategies designed to produce mutually satisfying exchanges with a target market
What are the four P’s?
Product, Place, Promotion, Price
What three ways can you follow up on the marketing plan?
1) Implementation
2) Evaluation
3) Control
3 requirements for effective strategic planning
1) Continual Attention
2) Creativity
3) Management Commitment
