Chapter 2 Flashcards
What is the company wide strategic plan?
1- DEFINE THE COMPANY MISSION
2- SET COMPANY OBJECTIVES AND GOALS
3- DESIGN THE BUSINESS PORTFOLIO
4- PLANNING MARKETING & OTHER FUNCTIONAL STRATEGIES
What is a mission statement?
The companys purpose and what it wants to accomplish in the larger environment.
- What is your business?
- Who is the customer?
- What do consumers value?
- This statement should focus on customers and the customer experience the company seeks to create.
Setting company objectives and Goals…
Objectives for each level of management.
What is a Business Portfolio?
Think of SBU.
(if the company have multi-sector business then it is suitable to use some strategic business units.)
Disney for example, they have disney studios, disney consumer products, disney interactives.
What is the Growth Share Matrix?
Shows a measure of market attractiveness.
What is relative Market share?
Shows a measure of company strength.
What are the aspects of a Growth Share Matrix?
1- STARS (Big owner in a growing market)
2- CASH COWS (Dont need to spend a lot because your generating a lot)
3- QUESTION MARKS (high growth, small price)
4- DOGS (market is not growing).
What does the Product/Market expansion grid identify?
It identifies the companys growth opportunity through:
1- Market Penetration (growth by increasing sales of current products without changing the product think starbucks vibe)
2- Market Development (Company growth by identifying and developping new market segments for customer products e.g.. open stores in asia)
3- Product Development (Growth by modifying current products and adding new ones eg. starbucks energy drinks)
4- Diversification (Growth by doing business and acquiring business outside of the companies current products and markets (Health and wellness, sell books in starbucks)
What is Value Chain?
Internal departments that carry out value creating activities to design, produce, market, deliver.
What is Value Delivery Network?
Companys customers who partner with each other to improve the performance of the entire system.
What is Marketing Segmentation?
Divide market into distinct groups according to diff needs.
What is Target Marketing?
Evaluating each market segments attractiveness and select one or 2 segments to enter.
What is Market Differentiation and Positioning?
Differientiation : How are they different/superior?
Positioning: Make sure they are offered in desired places.
What are the FOUR P’S of the Marketing mix?
1- PRODUCT (the good or service offered)
2- PRICE (Amount customers pay)
3- PLACE (Company activities that make it available)
4- PROMOTION (What persuades target customers?)
What are the problems with the GROWTH MATRIX?
- Difficult to place your business’
- Time consuming
- Expensive
- Good to look at current companies.
