Chapter 3:Strategic Market Planning Flashcards
business plan
the decisions that guide the entire organization or its business units
business planning
an ongoing process of decision-making that guides the firm in both the short term and the long term.
marketing plan
a process and resulting document that describes the marketing environment, outlines the marketing objectives and strategies and identifies how the company will implement and control the strategies embedded in the plan
strategic plan
is the managerial decision process that matches the firm’s resources (such as its financial assets and workforce) and capabilities (the things it is able to do well because of its expertise and experience) to its market opportunities for long-term growth.
functional planning
it involves the various functional areas of the firm, such as marketing, finance, and human resources.
an overall strategy or plan describing how, when, and where the objectives and goals will be accomplished for each function as well as for the entire business.
operational planning
the managers who are responsible for planning at a third level
-such as sales managers, marketing communication managers, brand managers, and market research managers.
consists of day to day operations of supervisory management
steps: use action plan to implement marketing plan and then use marketing metrics to measure how well the plan is going
mission
its purpose—its core reason for being
-It follows logically that a mission statement is a formal document that describes the organization’s overall purpose and what it intends to achieve in terms of its customers, products, and resources
vision
is what a firm aspires to do or be in the future
situational analysis
The second step in strategic planning is to assess the firm’s internal and external environments
-environmental analysis, or a business review.
internal envoirnment
all the controllable elements inside a firm that influence how well the firm operates
-firms strengths and weaknesses
SWOT analysis
This document summarizes the ideas from the situation analysis. It provides a clear focus on the meaningful strengths (S) and weaknesses (W) in the firm’s internal environment and on the opportunities (O) and threats (T) coming from outside the firm (the external environment).
business portfolio
the range of different businesses that a large firm operates
-determining which SBU will benefit the company the most and where to put them
BCG growth market share matrixs
→focuses on determining the potential of a firm’s existing SBUs to generate cash that the firm can then use to invest in other businesses.
-created by boston consulting group
stars
require large funding but have a dominant share in the market
cash cows
dominant share in low growth potential markets
-Firms usually milk cash cows of their profits to fund the growth of other SBUs.
-disney theme parks
question marks
problem children—are SBUs with low market shares in fast-growth markets. When a business unit is a question mark, the key issue is whether through investment and new strategy it can be transformed into a star
dogs
command small shares of slow-growth markets. They are businesses that offer specialized products in limited markets that are not likely to grow quickly.
-disney and espn
market penetration strategy
seek to increase sales of existing products to existing markets, such as current users, nonusers, and users of competing brands within a market.
-ex.mcdonalds making the app and kiosks
market development strategy
introduce existing products to new markets. This strategy can mean expanding into a new geographic area, or it may mean reaching new customer segments within an existing geographic market.
product development strategy
create growth by selling new products in existing markets. Product development may mean extending the firm’s product line by developing new variations of the item, or it may mean altering or improving the product to provide enhanced performance.
Ex. coke releasing new diet coke cans and flavors
diversification strategy
emphasize both new products and new markets to achieve growth.
outcome metrics
which are focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes.
-number of sales
return of market investment
consider marketing as an investment rather than an expense; this distinction drives firms to use marketing more strategically to enhance the business. For many firms today, ROMI is the metric du jour to analyze how the marketing function contributes to the bottom line.
(1) identify the most appropriate and consistent measure to apply,
(2) combine review of ROMI with other critical marketing metrics (one example is marketing payback—how quickly marketing costs are recovered)
(3) fully consider the potential long-term impact of the actions ROMI drives
agile marketing
which refers to using data and analytics to continuously source promising opportunities or solutions to problems in real time, deploying tests quickly, evaluating the results, and rapidly iterating (doing it over and over)
scrum
which had the original goal to embrace the uncertainty and creativity that already governed software development
-that whenever you start a project, you should regularly check in, see whether what you’re doing is heading in the right direction, and verify that it’s actually what people want.
-Scrum provides a framework that aims to create a culture of transparency, inspection, and adaptation while making it easier for team members to produce consistently great products. This approach lays out steps to achieve these objectives:
Sprint planning
Daily Scrum (also known as daily standup)
Sprint review
Sprint retrospective
contingency planning
that better takes into account the market uncertainties and constancy of change in business today. Put succinctly, contingency planning assesses the risk of a variety of possible, mostly external, environmental factors and their potential level of impact on the firm’s ability to add value and serve its market through its offerings.
-Based on this assessment, enlightened firms develop and prepare for multiple strategic paths that are often referred to as scenarios
