Chapter 2: Company And Marketing Strategy Flashcards
Explain company-wide strategic planning and its four steps?
Corporate Level:
- Step 1: Defining the company mission
- Step 2: Setting the company objectives and goals
- Step 3: Designing the business portfolio
Business Unit, Product and Market Level:
- Step 4: Planning marketing and other functional strategies
How to design business portfolios and develop growth strategies?
The best business portfolio fit the companys stengths weaknesses to opportunities in the environment.
The growth share matrix is a framework that can be utilized to assess current small business units (SBUs). The growth share matrix consists of four sections:
Stars - Question Marks
Cash Cow - Dogs
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value
Marketing orents the company direction by identifiying who the target customer is and how to deliver value to the target market. The partnering aspect refers to internal interdepartmental cohesion along the companys value chain; as well as, the external partners a company forms as part of its value delivery network. Some examples of value delivery network include; suppliers, distributers, and other external partners outside the company.
Describe the elements of a customer value-driven marketing strategy and mix, what forces influence them?
Elements of a Marketing stategy include:
Market Segmentation - The classification of customers into groups;
Market Targeting - The creation of a value proposition to service a target group;
Marketing Positioing - The positioning of a product to attract and service a particular customer;
Marketing Differentiation - The unique selling points of the company to seperate it from its peers, this could be tangible or ethial in nature
The forces that influence them are the four Ps, these are, product, price, place and promotion.
List the functions of marketing management, include the elements of a marketing plan, and discuss the importance of measuring and managing marketing ROI
What is a Business Portfolio?
Explain diversification
Company growth through starting up or acquiring businesses outside the company’s current products and markets
What is the Value chain?
The organisations internal departments that design, produce, market and deliver the company’s products to the customer.
How do you define the Marketing ROI?
The return on marketing investments divided by the cost of the investment. For example:
Cash Sales/Marketing Investments
150/30*100 = 500% return on investments
For every pound invested a return of £5
150/200 * 100 - 75% return on investments
For every pound invested a returned of 0.75p
A good return in general is 10%
What are the four strategies for managing strategic business units?
Build, hold, harvest, divest
