Chapter 2: Company and Marketing Strategy — Partnering to Build Customer Relationships Flashcards
Define strategic planning.
Strategic planning is the act of devising of a plan that makes sense with specific situation, opportunities, objectives and resources.
Identify the four steps in strategic planning.
Corporate level -
1) Defining the company mission
2) Setting company objectives and goals
3) Designing the business portfolio
Business unit, product and market level -
4) Planning marketing and other functional strategies
Explain the process of defining the company mission.
It is when you come up with a statement of the organization’s purpose; this will act as an individual hand that guides people in the organization. It should be market-oriented.
Questions that the mission statement should answer:
1) What is our business?
2) Who is our customer?
3) What do customers value?
4) What should our business be?
Explain the process of setting firm objectives and goals.
It is when you create a hierarchy of objectives that are consistent with one another. Objectives and goals should be supported by the mission.
Explain the process of designing the business portfolio.
There are two steps in this process:
1) Analyze its current business portfolio or SBUs.
2) Develop strategies for growth and downsizing that will shape the future business portfolio.
Elaborate on portfolio analysis.
Its purpose is to direct resources toward more profitable businesses.
It includes two important dimensions:
1) Attractiveness of SBU’s market
2) Strength of SBU’s position within that market
Elaborate on the BCG growth-share matrix.
There are two dimensions: market growth rate and relative market share.
There are four categories:
1) Stars - high growth, high share; build into cash cows via investment
2) Cash cows - low growth, high share; maintain or harvest for cash to build stars
3) Question marks - high growth, low share; build into star via investment or reallocate funding and let slip into dog
4) Dog - low growth, low share; maintain or divest
Elaborate on the product/market expansion grid.
1) Market penetration - existing market, existing product; adding new stores in current market areas
2) Market development - new market, existing product; identify and develop new markets (demographic or geographic)
3) Product development - existing market, same product; offering modified or new products to current markets
4) Diversification - new market, new product; riskiest
How does marketing play a key role in strategic planning?
Marketing provides a guiding philosophy (marketing concept), provides inputs to strategic planners (identify opportunities) and designs strategies to reach objectives.
Identify the 4 C’s.
The 4 C’s are customer solution, customer cost, convenience and communication. Marketers should think through 4C’s first, then build on 4P’s.
Identify the contents of a marketing plan.
1) Executive summary
2) Current marketing situation
3) Threats and opportunities analysis
4) Objectives and issues
5) Marketing strategy
6) Action programs
7) Budgets
8) Controls - what is used to monitor progress
List the steps in marketing control process.
1) Set goals - what do we want to achieve?
2) Measure performance - what is happening?
3) Evaluate performance - why is it happening?
4) Take corrective action - what should we do about it?
What are operating control and strategic control?
Operating control is to evaluate performance against the plan. Strategic control is to evaluate whether strategies match opportunities; uses marketing audit.
State some methods on how ROMI (return on marketing investments) is assessed.
1) Standard marketing performance measures e.g. brand awareness, sales, market share
2) Customer-centered measures e.g. customer acquisition, customer retention, customer lifetime value
