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Marketing > Chapter 3: Strategic planning for Competitive Advantage > Flashcards

Chapter 3: Strategic planning for Competitive Advantage Flashcards

1. Importance of strategic planning 2. Develop a mission statement 3. Marketing planning and identifications of target markets 4. Elements of the marketing mix 5. Why implementation, evaluation and control of the marketing plan are necessary 6. Identify several techniques that help make strategic planning effective 7. Business portfolio analysis

1
Q

What are the 3 levels of Strategic Planning

A
  1. Corporate (mission statement, business opportunities, and resource allocation)
  2. Business (Goal is to gain a competitive advantage)
  3. Marketing (Set plans to better meet consumers need)
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2
Q

Strategic decisions contain:

A
  • Made at all 3 lvls.
  • Wider scope
  • Longer orientation
  • Affect long-run course, allocation of resources, and financial success
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3
Q

Tactical decisions contain:

A
  • Made at the operational lvl. or marketing lvl.
  • Narrow scope
  • Short-term
  • Limited impact of long-run profitability
  • Directed from strategic decisions made at the corporate lvl.
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4
Q

Mission statement comprises of 3 main components

A
  1. Foundation of company
  2. What value is provided to customers
  3. Establish boundaries for all conditions
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5
Q

3 points involved in designing a business portfolio

A
  1. Understanding of the current environment and potential environment
  2. How?
  3. Conduct a SWOT
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6
Q

Internal environment contains:

A
  • Financial
  • Management
  • Marketing
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7
Q

Ansoff’s Strategic Opportunity Mix

A

Is a table:

Top row:

  • Current product (market penetration- CM) (Market development- NM)
  • New Product (product development- CM) (Diversification- NM)

Left column:

  • Current market (CM)
  • New market (NM)
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8
Q

What does SBU stand for?

A

Strategic Business Unit

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9
Q

Corporate level planning

A

Corporate strategy:

  • Define the mission statement
  • Set organizational goals and objectives

Setting strategic direction:

  • Situation SWOT analysis
  • Portfolio analysis
  • Identification of growth strategies
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10
Q

Marketing level planning

A

Marketing strategy:

  • Identification of target markets
  • Development of marketing mix (4Ps)

Implementation, evaluation and control:

  • Marketing audits
  • Annual marketing plan review
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11
Q

Business unit-level planning:

A

Business strategy:

  • Development of competitive advantage
  • Identification of core competencies
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12
Q

Define market penetration

A

A marketing strategy that tries to increase market share among existing customers, using existing products.

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13
Q

Define market development

A

A marketing strategy that involves attracting new customers to existing products.

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14
Q

Define product development

A

A marketing strategy that entails the creation of new products for current customers.

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15
Q

Define Diversification

A

A strategy of increasing sales by introducing new products into new markets.

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16
Q

Define competitive advantage

A

The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

17
Q

Define cost competitive advantage

A

Being the low-cost competitor in an industry while maintaining satisfactory profit margins.

18
Q

Business planning for competitive advantage: Implement and execute strategy

A
  • More detailed planning at the SBU level
  • The goal is to achieve a competitive advantage that is sustainable
  • Complete a SWOT at the SBU level
19
Q

Define product/service differentiation competitive advantage

A

The provision of a unique benefit that is valuable to buyers beyond simply offering a low price.

20
Q

Define niche competitive advantage

A

The advantage achieved when a firm seeks to target and effectively serve a single segment of the market.

21
Q

Define sustainable competitive advantage

A

An advantage that cannot be copied by the competition.

22
Q

Define marketing objectives

A

A statement of what is to be accomplished

23
Q

Define marketing strategy

A

Selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

24
Q

Define market opportunity analysis (MOA)

A

The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments.

25
Q

Define marketing audit

A

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

26
Q

What are the 4 characteristics of a marketing audit?

A
  1. Comprehensive
  2. Systematic
  3. Independent
  4. Periodic

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