Chapter 2 - Company and marketing strategy: partnering to build customer relationships Flashcards
What is strategic planning?
Process of developing and maintaining a strategic fit between organisation’s goals and capabilities and its changing marketing opportunities
What is a business portfolio?
Collection of businesses and products that make up a company
What is portfolio analysis?
Process by which management evaluates products and businesses that make up company
What is the growth-share matrix?
Portfolio-planning method that evaluates a company’s SBUs in terms of its market growth share relative market share
What is an SBU?
Strategic business unit
What is a product/market expansion grid?
Tool for identifying company growth opportunities through market penetration, market development, product development and diversification
What is market penetration?
Company growth
Increasing sales of current products to current market segments
Without changing the product
What is market development?
Company growth
Identifying and developing new market segments for
current company products
What is product development?
Company growth
Offering modified/new products to current market segments
What is diversification?
Company growth
Starting up/acquiring businesses outside company’s current market and products
What is downsizing?
Reducing the business portfolio
Eliminating products/business units
No longer profitable/fit company’s overall strategy
What is a value chain?
Series of internal departments
Carry out value-creating activities
Design, produce, market, deliver and support a firm’s products
What is a value delivery network?
Network;
Company, its suppliers, distributors and customers
Partner with each other to improve performance of entire system
What is market segmentation?
Division of market into distinct groups of buyers
Different needs, characteristics, behaviours
Might require separate products/marketing programmes
What is a market segment?
Group of consumers
Respond in similar way to given set of marketing efforts
What is market targeting?
Evaluating each market segment’s attractiveness
Selecting one or more segments to enter
What is positioning?
Arranging for a product to occupy clear, distinctive, desirable place relative to competing products in minds of target consumers
What is differentiation?
Actually differentiating market offering to create superior value
What is the marketing mix?
Tactical marketing tool
Firm blends all 4 to produce response it wants from target market
Product
Price
Place
Promotion
Define product
Goods and service combination company offers to target market
- variety
- quality
- design
- features
- brand name
- packaging
- services
Define price
Amount of money customers must pay to obtain product
- list price
- discounts
- allowances
- payment period
- credit terms
Define place
Company activities that make product available to target consumers
- channels
- coverage
- locations
- inventory
- transportation
- logistics
Define promotion
Activities that communicate merits of the product and persuade target customers to buy it
- advertising
- personal selling
- sales promotion
- public relations (PR)
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
