Chapter 2 Flashcards
What is strategic planning?
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?
A statement of the organization’s purpose - what it wants to accomplish in the larger environment.
What are 4 steps in strategic planning?
1) Defining the company mission
2) Setting company objectives and goals
3) Designing the business portfolio
4) Planning marketing and other functional strategies
What is business portfolio?
The collection of business and products that make up the company.
What is portfolio analysis?
The process by which management evaluates the product and business that make up the company.
What is a growth-share matrix?
A portfolio planning method that evaluates a company’s strategic business units (SBUs) in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.
What is product-market expansion grid?
A portfolio planning tool for which identifying company growth opportunities through market penetration, market development, product development, or diversification.
What is market penetration?
A strategy for company growth by increasing sales of current products to current market segments without changing the product.
What is market development?
A strategy for company growth by identifying and developing new market segments for current company products.
What is product development?
A strategy for company growth by offering modified or new products to current market segments.
What is diversification?
A strategy for company growth through starting up or acquiring business outside the company’s current products and markets.
What is downsizing?
Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy.
What is value chain?
The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
What is value delivery network?
The network made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system.
What is marketing strategy?
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
What is market segmentation?
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or market programs.
What is market segment?
A group of customers who respond in similar ways to a given set of marketing efforts.
What is market targeting?
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
What is positioning?
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of consumers.
What is differentiation?
Actually differentiating the market offering to create superior customer value.
What is marketing mix?
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.
What is marketing implementation?
The process that turns marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
What is marketing control?
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
What is a return on marketing investment?
The net return from a marketing investment divided by the cost of marketing investment.
