Chapter 2- MKTG Flashcards
Strategic Planning
Process of developing and maintaining a profitable strategic fit between the organization’s goals and capabilities and its changing market opportunities.
it sets the stage for the rest of the planning in the firm.
Steps:
→ 1 Defining its overall mission (how the company wants to positively affect it’s market or society in operates)
Set by marketing leaders (e.g., chief marketing officer)
→ 2 Setting company objectives and goals
by each business unit and product team
→ 3 Designs portfolio of businesses and products ( and decide how much support to give each one.
Mission statement
statement of the organization’s purpose - what it wants to accomplish in the higher environment.
clear mission statement : acts as ‘invisible hand’ that guides
→ Should be Market-oriented
+ defined in terms to satisfy customer and societal needs.
1 Market oriented mission
An organization exist to accomplish something, and this purpose should be clearly stated.
forging it start with asking questions like: what is our business? who is the customer? what do consumers value? what should our business be?
Many organizations develop mission statements that answer these questions
2 Setting company objectives and goals
The company needs to turn its broad mission into detailed supporting objectives for each level of management.
technically, short-term objectives and strategies
Designing the business portfolio
→ collections of businesses and products that make up the company.
The best business portfolio achieves the best fit between opportunities in the environment and the company’s strengths and weaknesses.
What 2 key questions does the marketing strategy involve
Which customers will we serve (segmentation and targeting)
How will we create value for them (differentiation and positioning)
How does a company find the best marketing mix (4 P’s)
the company engages in analysis, planning, implementation and control
what does SWOT Analysis stand for
Evaluate the company’s overall
strengths - Internal capabilities
weaknesses - Internal limitations
opportunities - External factors the company can exploit
threats - Current and emerging external factors that may challenge the company’s performance
Marketing analysis’s goal
Match the company’s strengths to attractive opportunities in the environment while simultaneously eliminating or overcoming the weaknesses and minimizing the threats
What does Market Planning involve
→ Choosing marketing strategies that will help the company attain its overall strategic objectives.
Contents of a Marketing Plan
Executive summary
Current marketing situation
SWOT Analysis
Objectives and issues
Marketing strategy
Execution plans
Budgets
Controls
What does a marketing strategy consist of and outline
Consists of specific strategies related to target markets, positioning, the marketing mix, and marketing expenditure levels.
It outlines how the company intends to engage target customers and create value in order to capture value in return.
Marketing implementation meaning
Process that turns marketing plans into marketing actions.
(who, where, when, how)
Describe Marketing Department Organization when the company is very small
It could consist of one person
Describe Marketing Department Organization in large companies
The department contains many specialists
e.g., product and market managers, sales managers and salespeople, market researchers, and advertising and digital media experts, etc…
Usually there’s a CMO = Chief Marketing Officer
→ works closely with other ‘C-level- executives
What is the most common form of marketing organization
Functional organization
= different marketing activities are headed by a functional specialist (sales manager, advertising manager, …)
What type of organization does a company that sells nationally or internationally have?
A geographic organization
- assigning sales and marketing people to specific countries
What type of organization do companies with many different products or brands have?
A product management organization
What type of organization do companies that sell one product line to many different types of markets and customers who have diff needs and preferences have
A market or customer management organization
What is marketing control
Evaluating results and taking corrective action to ensure that objectives are obtained
What are the four steps of marketing control
(Management)
1 First sets specific marketing goals
2 Measures its performance in the marketplace
3 Evaluates the causes of any difference between expected and actual performance
4 Takes corrective action to close the gaps between goals and performance
What does Operating control involve
= checking ongoing performance against the annual plan and taking corrective action when necessary
What are the goals of operating control
- ensure the company achieves the sales, profits, and other goals set in its annual plan
- determining the profitability of different products, markets, channels, …
What does strategic control involve
= looking at whether the company’s basic strategies are well matched to its opportunities
(because marketing strategies and programs can quickly become outdated)
Name one important marketing performance measure
Marketing return on investment (or marketing ROI)
What is Marketing ROI
= marketing return on investment
which is the net return from a marketing investment divided by the costs of the marketing investment
- it measures the profits generated by investments in mktg activities
What’s the issue with measuring ROIs
- Returns such as customer engagement, advertising and brand building impact aren’t easily put in dollar returns.
What are marketing dashboards
= meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance
What are some standard performance measures
brand awareness
social media responses
sales
market share
they’re usually assembled into marketing dashboards
What’s 2 other ways for a company to assess marketing ROI
- standard performance measure
What are some customer-centered measures of marketing impact
customer acquisition
customer engagement
customer experience
customer retention
customer lifetime value
customer equity
