Chapter 2: Partnership to Build Customer Relationships Flashcards
Strategic planning is
process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
strategic planning steps
Corporate level:
>define the company mission
>setting company objectives and goals
>Design the business portfolio
Business unit, product and market level:
>Planning marketing and other functional strategies
Questions for a Mission Statement:
What is our business?
Who is the customer?
What do consumers value? What should our business be?
Mission Statements should…
- Be realistic
- Be specific
- Fit the Market Environment
- Be based on distinctive competencies - Be motivating
Designing the Business Portfolio:
The business portfolio is the collection of business and products that make up the company. The company must:
> analyze its current business portfolio or SBUs
> decide which SBUs should receive more, less or no investment.
> develop growth strategies for growth or downsizing.
Analyse current SBU with what matrix and what is its problems?
BCG (questionmarkers, stars, dogs, cash cows)
Problems with Matrix Approaches:
> Can be difficult, time consuming, costly to implement.
> Difficult to define SBUs and measure market share/growth
> Focus on current business, not future planning
> Can lead to poorly planned diversification
> Can place too much emphasis on growth.
Product/Market Expansion Grid:
- market penetration
- Market development
- product development
- diversification
Marketing’s Role in Strategic Planning:
- Provide a guiding philosophy
- Provide inputs to strategic planners
- Design strategies to reach objectives
Value Delivery 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.
- Market segmentation:
process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs.
Existing
market segment
consumers who respond in a similar way to a given set of marketing efforts.
- Taregt marketing
involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. Can sustain profitability.
- Market positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Process begins with differentiating the company’s marketing offer so it gives consumers more value.
- Product ex
- variety
- quality
- design
- features
- brand names - packaging
- services
- Price ex
- list price
- discounts
- allowances
- payment period
- credit terms
