Chapter 2: company and marketing strategy Flashcards
strategic planning
the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
Steps in defining a marketing oriented mission
- define the company mission
- set objectives and goals
- design the business portfolio
- plan marketing and other functional strategies
Mission statement
statement of the organization’s purpose - what it wants to accomplish in the larger environment. Mission statements should be market-oriented and defined in terms of satisfying basic customer needs
Setting goals and objectives
turning this broad mission into detailed supporting objectives for each level of management
business portfolio
The collection of businesses and products that make up a company.
What does the best business portfolio have
the one that best fits the company’s strengths and weaknesses to opportunities in the environment
portfolio analysis
the process by which management evaluates the products and businesses that make up a company
SBU
a company division, a product line within a division or sometimes a single product or brand
Growth share matrix
a portfolio planning method that evaluates a company’s SBU in terms of market growth rate and relative market share
What are the 4 categories of the BCG matrix
stars: high growth high share
Cash cows: low growth high share
question marks: low share high growth
dogs: low growth low share
product / market expansion grid (ansoff matrix)
portfolio planning tool for identifying company growth opportunities
market penetration
existing product, existing market
Product development
Existing market, new product
Market development
Existing product, new market
Diversification
new product, new market
value chain
the series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firms products
Value delivering network
A network composed of the company, suppliers, distributors and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value
marketing srategy
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
What does the customer value-driven marketing strategy consist on
market segmentation, market segment, market targeting, positioning and differentiation
What is the marketing mix
the set of tactical marketing tools that the firm blends to produce the response it wants in the target market
Consists of product, price, place, and promotion
Marketing mix tools
Product: goods and services offered
price: amount of money customers must pay
Place: company activities to make the product available
promotion: activities that communicate the merits of the product and persuade target customers to buy it
SWOT analysis
an overall evaluation of the company’s strengths, weaknesses, opportunities and threats
Marketing planning
process through which the company decides what it wants to do with each business unit
marketing implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
marketing department organization
the company must design a marketing organization that can carry out marketing strategies and plans
