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MKTG 2P91 > Chapter 2 Strategic Planning in Contemporary Marketing > Flashcards

Chapter 2 Strategic Planning in Contemporary Marketing Flashcards

1
Q

Define Planning

A

Anticipating future events and conditions and determining the best way to achieve organizational objectives

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2
Q

Define Marketing Planning

A

Implementing planning activities devoted to achieving marketing objectives

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3
Q

Define Strategy

A

The integrated set of choices that positions the business in its industry as to generate superior financial returns over the long run

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4
Q

Strategic Planning

A
  • Determining organizations primary objectives
  • Adopting courses of action that will achieve these objectives
  • Provides long term direction for its decision makers
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5
Q

Tactical Planning

A
  • Guides the implementation
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6
Q

List the Managerial Levels

A
  • Top Management
  • Middle Management
  • Supervisory Management
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7
Q

Describe Top Management and provide an example

A

Top Management: Chief Executive Officer (CEO)
Type of planning: Strategic Planning
Examples: Fundamental strategies, total budget

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8
Q

Describe Middle Management and provide an example

A

Middle Management: General Sales Manager
Type of planning: Tactical Planning
Examples: Divisional policies and procedures, business unit budgets

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9
Q

Describe Supervisory Management and provide an example

A

Supervisory Management: Supervisor
Type of Planning: Operational Planning
Examples: Daily and weekly plans, department rules and procedures

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10
Q

Forms of aspirations

A
  • Mission: Why we exist
  • Vision: What future we want to create
  • Values: What is important to us
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11
Q

Define Mission

A

Essential mission that differentiated one company from another
- Short statement that describes the nature of the business

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12
Q

Characteristics of a mission statement

A
  • Broad in scope
  • Does not include monetary amounts, numbers or objectives
  • Fewer than 150 words
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13
Q

Components of Mission Statement

A
  • Customers
  • Markets
  • Concern for employees
  • Concern for growth/profits/survival
  • Technology
  • Products/services
  • Inspiring and enduring
  • Concern for public image
  • Philosophy
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14
Q

Define Values

A

What we believe in and how we will behave

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15
Q

Define Vision

A

What we want to be

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16
Q

Define Strategy

A

Competitive game plan

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17
Q

Define Balanced Scorecard

A

How we will monitor and implement the plan

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18
Q

Define Objectives

A

Guide the development of marketing objectives and plans

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19
Q

Define Marketing Strategy

A

Selecting and satisfying target consumers through the marketing mix elements

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20
Q

Purpose of Porter’s Five Forces Model

A
  • Competitive analysis
  • Determine market attractiveness
  • Focuses on external factors that determine the shape of the competition
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21
Q

Components of Porter’s Five Forces Model

A
  • Threats to new entrants
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of substitute products
  • Rivalry among competitors
22
Q

Define First Mover Strategy

A

The company first to offer a product in a marketplace will be the long term market winner

23
Q

Define Second Mover Strategy

A

Observing innovation to first movers and then improving on them to gain competitive advantage in the marketplace

24
Q

SWOT Analysis

A
  • Compares the organizations strengths and weaknesses with its opportunities and threats
  • Internal environment vs external environment
25
Q

Strengths

A
  • Cost advantages
  • Financial resources
  • Customer loyaly
26
Q

Weaknesses

A
  • Too narrow a product line
  • Inadequate financing capabilities
  • High costs of operation
27
Q

Opportunities

A
  • Add to product line

- Enter new markets

28
Q

Threats

A
  • Changing buyer tastes
  • Likely entry of new competitors
  • Adverse government policies
29
Q

Strategic Window

A

Limited periods when key requirements of a market and a firms particular competencies best fit together

30
Q

Define Target Market

A

The group of people toward whom the firm directs its marketing

31
Q

Marketing Mix Variables

A
  • Product
  • Promotion
  • Price
  • Distribution
32
Q

Product Strategy

A

Deciding what goods or services the firm should offer to a group of consumers

33
Q

Promotion Strategy

A

Communication link between sellers and buyers directly through sales people or indirectly through advertising and promotions

34
Q

Pricing Strategy

A

Methods of setting profitable and justifiable prices
A good pricing strategy:
- Creates value for customers
- Builds and strengthens customer relationships with a firm and its products

35
Q

Distribution Strategy

A

Involves modes of transportation, warehousing, inventory control, order processing and selection of marketing channels

36
Q

External Factors Affecting the Marketing Mix

A
  • Competitive
  • Political/legal
  • Economic
  • Technological
  • Social/cultural
37
Q

Rule of Three

A

The 3 strongest, most efficient companies dominate between 70 to 90 percent of a market
Example: Cereal manufacturers (General Mills, Kellogs, Post)

38
Q

Methods for Marketing Planning

A
  • Business Portfolio Analysis
  • BCG Matrix (different business divisions)
  • Ansoff Matrix (business in 1 or 2 sectors)
39
Q

Define the Ansoff Matrix (Strategic Growth Opportunity)

A

An analysis of potential growth opportunities based on existing or new customers and existing or new products

40
Q

Components of the Ansoff Matrix

A
  • Market Penetration
  • Product Development
  • Market Development
  • Diversification
41
Q

Define Market Penetration

A

Company wants to increase market share and increase product

- Could be done through marketing promotion (buy one, get one)

42
Q

Define Product Development

A

Company wants to improve product or extend the product line

- Brings more customers (Coke introduces Diet Coke)

43
Q

Define Market Development

A

International markets
- Product expands into another country
New market segments
- Product brands may use different market segments

44
Q

Define Diversification

A 
Related diversification (Wholefoods market)
Unrelated diversification
45
Q

Define Business Portfolio Analysis

A

An evaluation of a company’s products and divisions to determine the strongest and weakest

46
Q

Define Strategic Units

A

Key business units with diversified firms

  • Each has its own managers, resources, objectives and competitors
  • Each pursue its own distinct mission and develops its own marketing plans
47
Q

BCG Market Share/Market Growth Matrix

A

BCG Analysis - A market share/market growth matrix that plots market share against market growth potential

48
Q

High Market Share/High Industry Growth Rate

A

Stars: Generate considerable income

- Strategy: Invest more funds for future growth

49
Q

Low Market Share/High Industry Growth Rate

A

Question Marks: Have potential to become stars or cash cows

- Strategy: Either invest more funds for growth or consider disinvesting

50
Q

Low Market Share/Low Industry Growth Rate

A

Dogs: Generate little profits

- Strategy: Consider withdrawing

51
Q

Steps in the Planning Process (Corporate Level)

A
  1. Determine the mission of the organization
  2. Determine organizational objectives
  3. Assess organizational resources and environmental risks and opportunities
52
Q

Steps in the Planning Process (Business Unit Level)

A
  1. Formulate strategy
  2. Implement strategy through operating plans
  3. Monitor and adapt strategies based on feedback

MKTG 2P91 (5 decks)

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