Chapter 3 Flashcards
SWOT Matrix
Involves Strengths, Weaknesses, Opportunities & Threats combined with strategies to address each
3-steps to creating a SWOT Matrix
- Identify and rank the importance of each internal and external factor
- Asses the strategic fit of strengths and weaknesses to external factors
- Propose a list of strategic responses
What should marketing objectives be?
SMART
Measurable Time-Specific Feasible Consistent Acceptable to management Understandable
Competitive intelligence
The process of gathering actionable information on competition and the business environment
Must be; LEGAL & ETHICAL
Financial metrics
Generally only measure internal financial performance
Market Metrics
Externally focused though internal metrics are also needed
Examples of market-based performance metrics
- customer satisfaction
- relative product and service quality
- product awareness
- market share
- revenue per customer
- customer retention
What is net marketing contribution?
Revenue - Cost of GS = Gross Profit - Marketing Expenses = NET MARKETING CONTRIBUTION
How can we use market level profitability information?
- to increase primary demand
- ” market penetration
- ” lower costs
- ” improve marketing efficiencies
Boston Consulting Group Growth-Share Matrix
- Star (High MS, MG)
- Cash cow (High MS, Low MG)
- Dog (Low MS, MS)
- Question Mark (Low MS, High MG)
How to determine marketing productivity
Marketing Productivity = Net Marketing Contribution/Marketing Budget