Company + Marketing Strategy Flashcards
Define Firm Strategic Planning
Process of designing and maintaining a strategic fit between a firms capabilities and goals, and its changing marker opportunities.
Name the 4 steps of Firm Strategic Planning
- Define Firm Mission
- Setting Firm Objectives and Goals
- Designing Business Portfolo
- Planning Functional/Marketing Strategy
What should a firms Mission Statement do?
- Outline firms purpose
- Emphasise firms Competitive Advantage
- Emphasise key details such as products, customers and location.
Name and explain the 2 key characteristics of firm objectives and goals
Specific & Significant - Need to be well defined and clear to anyone who understands the firms mission.
Time based and Trackable - Need to have adequate time to achieve goal, but not too much that it negatively impacts performance. Also need to be able to be monitored.
Define The Business Portfolio, Portfolio analysis, the 2 Steps of portfolio plannings and give 3 strategic business units.
Portfolio- The set of business units and products that make up the firm.
Portfolio Analysis - Where firm assess the attractiveness of its current business portfolio.
Portfolio Planning-
- Asses Current Portfolio and where to invest
- Shape the future portfolio of the firm through strategies for growth and downsizing.
-Specific product, distinct resource & business division
Name and explain the 2 key strategies for analysing the current business portfolio, and the 3 main issues with them.
Boston Consulting group model.
Based on market share and growth, creating product archetypes.
Questions marks - Invest selectively, divest when not looking profitable
Stars-Invest heavily to maintain and grow position
Cash cows- Invest intermittently to hold position, use cash to support stars.
Dogs- Harvest or divest but be aware of consumer reactions.
Product Life cycle Model.
R&D - Introduction - Growth - Maturity - Decline (impacts sales and profits)
PROBLEMS
- Difficulty in measuring market share and growth
- Expensive and time consuiming
- Focuses on the now; Does nothing to help grow firms portfolio.
Name and explain the 2 key strategies used to shape the future portfolio (growth strategies)
ANSOFFS MATRIX Growth strategies based on 2 variables, Products and markets. Creates growth strategy archetypes. Market penetration Market Development Product development Diversification
STRATEGIC MARKETING FIT
A resource based view of firm, that allows firm to shape its future portfolio growth strategies based on its firm resources(Tangible + Intangible) and external environment.
Links to ansoff as growth strategy archtypes same. Links to SWOT as strengths and weaknesses come from firm resources, opportunities and threats come from external environment.
How do firms analyse their Competitive Environment Name the 5 key aspects of this.
Porters 5 forces Threat if substitutes Threat of new Entrants Bargaining power of suppliers Bargaining power of customers Rivalry among existing competition
Define Customer Value-Driven Marketing Strategy, with its 2 elements and their related marketing Activities
- The marketing logic by which firms should attempt to create customer value and profitable customer relationships. This includes a who stage (segmentation and targeting) and a how stage (differentiation, positioning and marketing mix)
Define Marketing Mix
A set of controllable, tactical marketing tools identified by the 4 p’s that are used to produce a desired response from target consumers
Name the 4 stages of Managing the Marketing Effort
- Planning
- Organisation and Implementation
- Control
- Analysis
Name 4 types of return on Marketing Investment, and define Net Return
Customer engagement, customer attention, customer retention, Increased lifetime customer values.
Net return is the total of all marketing returns, minus the cost of that specific marketing investment.
