Chapter 3: Strategic Planning for Competitive Advantage Flashcards
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
Strategic planning
The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities.
Marketing environment
The entire set of situational conditions, both internal (strengths and weaknesses) and external (opportunities and threats), within which a business operates.
Strategic business unit (SBU)
A subgroup of a single business or a collection of related businesses within the larger organization.
Mission statement
A statement of the firm’s value based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.
SWOT analysis
Identifying internal environment of strengths (S) and weaknesses (W) as well as external opportunities (O) and threats (T).
Environmental scanning
The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.
Market penetration
A marketing strategy that tries to increase market share among existing customers, using existing products.
Market development
A marketing strategy that involves attracting new customers to existing products.
Product development
A marketing strategy that entails the creation of new products for current customers.
Diversification
A strategy of increasing sales by introducing new products into new markets.
Core competencies
Key unique strengths that are hard to imitate and underlie the functioning of an organization.
Competitive advantage
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.
Cost competitive advantage
Being the low-cost competitor in an industry while maintaining satisfactory profit margins.
Experience curves
Curves that show costs declining at a predictable rate as experience with a product increases.
Product/service differentiation competitive advantage
The provision of a unique benefit that is valuable to buyers beyond simply offering a low price.
Niche competitive advantage
The advantage achieved when a firm seeks to target and effectively serve a single segment of the market.
Sustainable competitive advantage
An advantage that cannot be copied by the competition.
Marketing strategy
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
Marketing objective
A statement of what is to be accomplished through marketing activities.
Market opportunity analysis (MOA)
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.
Marketing mix
A unique blend of product, price, place, and promotion, strategies designed to produce mutually satisfying exchanges with a target market.
Four Ps
Product, price, place, and promotion, which together make up the marketing mix.
Implementation
The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives.
