chp 2 Flashcards
strategic planning is?
the managerial process of creating and maintaining a fit between the org.’s objectives and resources and the evolving market opportunities.
strategic marketing management asks two questions?
- what is the org.’s main activity at a particular time?
2. how will it reach its goals
what characteristics do SBU’S have?
- a distinct mission & specific target market
- control over its resources
- its own competitors
- a single business or a collection of related businesses
- plans independent of other SBU’S
ansoff’s opportunity matrix?
- market penetration
- market development
- product development
- diversification
market penetration is?
try to increase market share among existing customers
market development is?
means to attracting new customers to existing products
product development is?
creating new products for present markets
diversification is?
introduce new products into new markets
why write a marketing plan?
the creation & implementation of a complete marketing plan will allow the org. to achieve marketing objectives and succeed.
only is the plan is as good as the info it contains and the effort.
defining the business mission?
“what business are we in?”
the business mission profoundly affects the firm’s long run resource allocation, profitability and survival
what is SWOT analysis?
Internal- strengths and weaknesses
external- opportunities and threats
SWOT- strength
things the company does well
SWOT- opportunities
conditions in the external environment that favor strengths
SWOT- weaknesses
things the company doesn’t do well
SWOT- threats
conditions in the external environment that don’t relate to existing strengths or favor areas of current weaknesses
Components of SWOT
- production costs
- marketing skills
- financial resources
- company or brand image
- employee capabilities
- technology
what is environmental scanning?
the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the org. or the implementation of the marketing plan
what are the six environmental forces?
- social
- demographic
- economic
- technological
- political and legal
- competitive
what is competitive advantage?
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
cost competitive advt. is?
being the low-cost competitor in an industry while maintaining satisfactory profit margins
what are the three types of competitive advt?
- cost
- product/service differentiation
- niche
product/service differentiation is?
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
niche is?
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
what are the sources of cost reduction?
- experience curves
- efficient labor
- no-frills products
- gov’t subsidies
- product design
- re engineering
- production innovation
- new service delivery methods
