Chapter 3 Flashcards
business planning
ongoing process of making decisions that guides the firm both in the short and long term
business plan
plan that includes the decisions that guide the entire organization
market plan
document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies how the company will implement and control the strategies embedded in the plan
strategic planning
managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth
strategic business units (SBU’s)
individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
functional planning
decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan
market planning
functional planning marketers do; market planning typically includes both a broad 3-5 year marketing plan to support the firm’s strategic plan and a detailed annual plan for the coming year
operational planning
decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans
mission statement
formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
situation analysis
assessment of a firm’s internal and external environments
internal environment
controllable elements inside an organization, including its people, its facilities and how it does things that influence the operations of the organization
external environment
uncontrollable elements outside an organization that may affect its performance either positively or negatively
SWOT analysis
analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment (Strengths, Weakness, Opportunities, and Threats)
business portfolio
group of different products/brands owned by an organization and characterized by different income-generating and growth capabilities
portfolio analysis
management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units
BCG growth-market share matrix
portfolio analysis model developed by the Boston Consulting Group that assess the potential of successful products to generate cash that a firm can then use to invest in new products
stars
SBU’s with products that have a dominant market share in high-growth markets
cash cows
SBU’s with a dominant market share in a low-growth-potential market
question marks
SBU’s with low market shares in fast-growth markets
dogs
SBU’s with a small share of a slow-growth market; business that offer specialized products in limited markets that are not likely to grow quickly
market penetrating strategies
growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products and new markets
control
process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then marking adjustments to the strategies or objectives on the basis of this analysis
activity metrics
metrics focused on measuring and tracking specific activities taken with a firm that are part of different marketing processes
outcome metrics
metrics focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes
return on marketing investment (ROMI)
quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise
action plans
individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan; action plans are sometimes referred to as “marketing programs”
leading indicators
performance indicators that provide insight into the performance of current efforts in a way that allows a marketer to adjust relevant marketing activities (hopefully) resulting in performance improvements against the current action plan
lagging indicators
performance indicators that provide insight into the performance of an action plan based on outcomes realized
operational plans
plans that focus on the day-to-day execution of the marketing plan; operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines to accomplish the task
