Developing Marketing Strategies (Lecture #4) Flashcards
What are the two general kinds of organizations?
- Business firms aiming to make profits
- -private or publicly owned (profit is the goal) - Non-profit orgs
- -usually nongovernmental org that serves its customer, profit is not the org’s goal
def. strategy
org’s long-term plan of action to deliver unique customer value/experience and to achieve its objectives
What are the levels of strategy in an org?
- Corporate-level Strategy(only board of directors are above this level)
- —top management, overall strategy for the org - Business-unit strategy
- –business unit managers, set direction for their products and markets - Function-level strategy
- –decide decisions in each apartment
What are the three important questions to consider when developing marketing strategies?
- What are the Organizational Foundations? (Why?)
- -i)core values ii)mission or vision and iii) culture - What is/are the organizational direction(s) and business goal(s) (What?)
- -i) long term ii)short term - What are the organizational strategies at different levels and different goods and services? (How?)
Describe the Parts of a SWOT Analysis (each thing and the ‘parameters’ they fit under)
- Strengths (Favourable, Internal)
- Weaknesses (Unfavourable, internal)
- Opportunities (Favourable, External)
- Threats (unfavourable, external)
What is the breakdown of marketing strategy levels (and who is in them)?
- Corporate level
- -the top management team (TMT) decides overall strategy - Strategic Business Unit (SBU) Level
- -a division of an org that markets a set of related offering to clearly defined group of customers - Functional/operational level
- -groups of specialists(departments) create value for an org
What is the progression of strategy at the 1. Strategic, 2. Managerial, and 3. Operational levels?
1: Formation of strategy
2: translation of goals into operations
3: effective implementation
what 3 things make up an org’s foundation?
core values, mission, organizational culture
def. core values
fundamental, passionate and enduring principle that guide org’s conduct overtime
def. mission
statement of the org’s function in the society, identifying its customers, markets, products, technologies, etc.
def. organizational culture
set of values, ideas, attributes, and norms of behaviour and conduct that are learned, shared practice by org members
What is an a business’ organizational direction?
clear and broad statement of the firm’s offerings and activities, view to future
Apart from a general statement’s of the org’s direction, what else is part of the org’s direction?
-goals (statements of what tasks, objectives need to be achieved)
What do an org’s goals surround (general targets)? (8)
- Profit
- Sales Revenue
- Market Share (Org’s revenues/industry’s revenues)
- unit sales per time period
- quality
- customer satisfaction
- employee welfare: good employment conditions
- social responsibility: balancing the conflicting interests of stakeholders to deliver benefits to the society
What makes goals effective?
SMART Specific Measurable Attainable Relevant Time-based
In what two ways do organizational strategies vary?
Variation by level: moving from general principle (corporate level) to in-depth details (functional level)
Variation by offering: org strategies also vary by the org’s offering (products, service, experience)
Generally describe the components of the Boston Consulting Group’s (BCG) Portfolio Analysis (names and ‘parameters’)
Stars (high relative market share, high market growth rate)
Question Marks (Low market share, high growth rate)
Cash Cows (high market share, low growth rate)
Dogs(low market share, low growth rate)
Describe ‘cash cows’ and their uses
can be used for company overhead and investment in other SBUs
-high market share, low growth rate
describe ‘stars’ and their characteristics
may not generate enough cash to support their own demanding needs
-high market share, high growth rate
describe ‘question marks’ (or problem children) and thier characteristics
-It requires a lot of cash to maintain market share, and
management must decide whether investing resources in this SBU is justified
-high growth rate, low market share
describe ‘dogs’ and their characteristics
It does not hold the promise of becoming winners for the firm
- -don’t want to be here
- low growth rate, low market share
What questions should you ask when setting strategic direction?
-Where do we want to go?
-What do we do in our current markets and with our
current product(s)?
-Do/should we introduce new product(s)?
-Do/should we go to new market(s)?
What are the four market-product strategies and their “parameters”?
- market penetration (current products, current markets)
- market development(current products, new markets)
- product development (new products, current markets)
- diversification (new products, new markets)
describe market penetration
selling more products in existing markets
describe market development
selling existing products in new markets (either geographic or new segments)
describe product development
selling new products in existing markets
describe diversification
selling a new product in new markets
What are the ways to track strategic direction?
marketing dashboards and metrics
def. marketing dashboard
the visual computer-assisted
display of the essential information related to achieving
a marketing objective
def. marketing metric
Performance variables, quantitative
measures of value or trend of a marketing activity or
result
def. marketing plan
A plan to implement firm’s strategy to achieve objective (Using Smart + Marketing Metrics)
What does the strategic marketing process involve?
- an organization assessing where it is at and where it
wants to go
2.allocating marketing resources to its marketing mix
each its target markets and achieve its objectives
The strategic marketing process is divided into what three phases?
planning, implementation, and control
What 3 questions emerge after an org assesses where it is at and where it wants to go?
- How do we allocate our resources to get where we want to go?
- How do we convert our plan to actions?
- How do our results compare with our objective and plans, and do deviations require new plans?
What are the three steps in the planning phase of the strategic marketing process?
- Do situation analysis (SWOT)
- Market-Product focus and goal setting
- –set marketing and product goals
- –select target markets
- –find points of difference - Marketing Plan/program
def. points of difference
what makes product different/superior to competition
What is the single most important factor in the success or failure of a new product?
points of difference
def. market segmentation
process of aggregating prospective buyers or segments that (1) have common needs (2) will respond similarly to a marketing action
def. target selection
selecting feasible segments with the highest points of difference
What is a part of the implementation phase in the strategic marketing process?
- obtaining resources
- designing the marketing organization
- developing schedules
- executing the marketing program
- assessing results (recall metrics)
What does the strategic marketing process seek to do?
keep the marketing program moving in the/or set direction
What does the evaluation phase of the strategic marketing process involve?
comparing results with plans to Identify deviations
- understanding the reason(s) for deviations
- correcting a negative deviation
- exploiting a positive deviation
- learning from the experience
