Chapter #2: Marketing Strategies/Plans Flashcards
Describe value delivery process
What business does to instill value into their products/services. Because of WHO the company is, the price can be charged. BIG DEAL, more than just how the products are made.
Ex. Who sells them, how they are sold, store’s location/storefront look, purpose behind business, marketing/stigma behind it
Core competency
Gives competitive advantage, difficult for others to imitate. If it was changed the business would suffer.
Ex: Apple’s: how easily all products work together, or their in country helplines
Amazon’s: the fact that their packaging is done locally, Amazon Prime
Strategic Planning
When you are able to match the organizations objectives/skills/resources with appropriate marketing opportunities (process of looking ahead and seeing what comes next)
Strategic Planning Activities
Setting corporate missions, objectives, goals, analyzing SBUs, establishing target product portfolio, implementing marketing plans, THINKING FUTURISTICALLY
Company Mission
Company Objectives
Company Goals
Mission: Business definition and why the company exists to operate. What makes the company it in the long term.
Objectives: What the company is striving to achieve. How they see their business going, sales, profit, ROI, membership, etc.
Goals: (SMART goals) what company is striving after in specific time period. Example: 500 new customers by May
SBU
Strategic Business Unit: an organizational business unit that is planned for separately, has its own set of competitors, and own separate manager.
Example: could be a specific brand within a company or product line.
Think of all the different products Johnson + Johnson has or a type of clothing brand at Francesca’s or even a category.
PLC (Product Life Cycle)
Cycle on a graph of introduction, growth, maturity, and decline.
Graph starts going up, then humps, then dips.
4 Different methods of SBU analysis
1-PLC
2-BCG Matrix
3-GE’s Strategic Planning Grid
4-Brand Asset Valuator
BCG Growth-Share Matrix, 4 cells and what each means.
4 cells.
Left is market growth. (High, Low)
Bottom is market share. (High, Low)
In the order a product travels in: Question Mark, Star, Cash Cow, Dogs.
What is the optimal flow on the BCG Growth-Share Matrix?
Cash Cow to Question Mark.
4/5 Stages within the BCG and describe them.
Introduction: Before Question Mark Build: Question Mark and Star Hold: Cash Cow Harvest: Cash Cow and Dogs Divest: Dogs and continued
Examples of companies that went from Stars to Dogs.
Digital Cameras.
Blockbuster.
Super popular to extinct. (iPhone creation and Netflix)
Why would you keep a Dog?
You are keeping another option open/afloat. Things cycle so this Dog could be a fad later in the long run.
Brand Asset Valuator
Assets/attributes are assigned a weight that evaluates and critiques them in order.
Problems according to Day’s “Diagnosing Product Portfolio” with BCG Matrix
- Ignores overhead costs
- Where do niche markets fall?
- Sometimes markets never stabilize
