Chapter 2 Flashcards
Strategic planning
The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities
Mission statement
A statement of the organisation’s purpose - what it wants to accomplish in the larger environment
Strategic business units (SBUs)
The key businesses that make up a company
Business portfolio
The collection of businesses and products that make up the company
Portfolio analysis
The process by which management evaluates the products and businesses that make up the company
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
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification
Market penetration
Company growth by increasing sales of current products to current market segments without changing the product
Market development
Company growth by identifying and developing new market segments for current company products
Product development
Company growth by offering modified or new products to current market segments
Diversification
Company growth through starting up or acquiring businesses outside the company’s current products and markets
Value chain
The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products
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
Marketing strategy
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours, and who might require separate products or marketing programs
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Positioning
Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering to create superior customer value
Marketing mix
The set of controllable tactical marketing tools - product, price, place, promotion, people, process and physical evidence - that the firm blends to produce the response it wants in the target market
SWOT analysis
An overall evaluation of the company’s strengths, weaknesses, opportunities and threats
Marketing implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
Marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved
Return on marketing investment
The net return from a marketing investment divided by the costs of the marketing investment
