Company and Marketing Strategy Flashcards
(Company-Wide Strategic Planning)
What is strategic planning?
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.
(Company-Wide Strategic Planning)
Steps in strategic planning
> defining the company mission
setting company objective + goals
designing the business portfolio
planning marketing + other functional strategies
A mission statement is a statement of the organization’s purpose—what it wants to accomplish in the larger environment.
The company needs to turn its broad mission into detailed supporting objectives for each level of management.
Business portfolio is the collection of businesses and products that make up the company.
(Company-Wide Strategic Planning)
Business objectives
> Build profitable customer relationships
Invest in research
Improve profits
(Company-Wide Strategic Planning)
Marketing objectives
> Increase market share
Create local partnerships
Increase promotion
(Designing the Business Portfolio)
What is portfolio analysis?
a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.
(Designing the Business Portfolio)
Strategic Business Units (SBUs) can be a
> Company division
Product line within a division
Single product or brand
(Designing the Business Portfolio)
Analysing the Current Business Portfolio
> Identify strategic business units (SBUs)
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves
(Designing the Business Portfolio)
Product/market expansion grid
looks at new products, existing products, new markets, and existing markets for company growth opportunities.
E products N products
EM market product
penetration development
NM market diversification
developement
(Designing the Business Portfolio)
Downsizing
when a company must cut, harvest, or separate businesses that are unprofitable or that no longer fit the strategy.
(Partnering with Other Company Departments)
Value chain
a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
(Partnering with Others in the Marketing System)
Value delivery network
made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system.
(Customer Value-Driven Marketing Strategy)
Marketing strategy
is the marketing logic by which thecompany hopes to create customer value and achieve profitable customer relationships.
(Customer Value-Driven Marketing Strategy)
Market segmentation
is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.
(Customer Value-Driven Marketing Strategy)
Market segment
a group of consumers who respond in a similar way to a given set of marketing efforts.
(Customer Value-Driven Marketing Strategy)
Market targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
(Customer Value-Driven Marketing Strategy)
Market positioning
the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
(Customer Value-Driven Marketing Strategy)
Differentiation
begins the positioning process.
(Developing an Integrated Marketing Mix)
Marketing mix
the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market.
(Developing an Integrated Marketing Mix)
Examples of product
variety quality design features brand name packaging services
(Developing an Integrated Marketing Mix)
Examples of price
list price discounts allowances payment period credit terms
(Developing an Integrated Marketing Mix)
Examples of promotion
advertising
personal selling
sales promotion
public relations
(Developing an Integrated Marketing Mix)
Examples of place
channels coverage location inventory transportation logistics
(Managing the Marketing Effort)
Marketing Analysis
SWOT analysis
Internal pos = strengths
> internal capabilities that may help a company to reach its objective
internal neg = weakness
> internal limitations that may interfere w/ a companys ability to achieve its objectives
external pos = opportunities
> external factors that the company may be able to exploit to its advantage
external neg = threats
> current and emerging external factors that may challenge the companys performance
(Managing the Marketing Effort)
Marketing Implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Addresses who, where, when, and how
(Managing the Marketing Effort)
Marketing Control
> Evaluating results
Taking corrective action
Operating control
Strategic control
(Measuring and Managing Return on Marketing Investment)
Return on Marketing Investment (Marketing ROI)
> Net return from a marketing investment divided by the costs of the marketing investment
Measurement of the profits generated by investments in marketing activities
(Segmenting Consumer Markets)
Geographic segmentation
divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.
(Segmenting Consumer Markets)
Demographic segmentation
divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
(Segmenting Consumer Markets)
Psychographic segmentation
divides a market into different segments based on social class, lifestyle, or personality characteristics.
(Segmenting Consumer Markets)
Behavioral segmentation
divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.
(Segmenting International Markets)
> Geographic location
Economic factors
Political and legal factors
Cultural factors
Requirements for Effective Segmentation
> Measurable > Accessible > Substantial > Differentiable > Actionable
(Selecting Target Market Segments)
Individual marketing
involves tailoring products and marketing programs to the needs and preferences of individual customers.
Also known as
> One-to-one marketing
> Mass customization
Product position
is the way the product is defined by consumers on important attributes.
