Strategic Marketing (Ch. 15) Flashcards
What is the process of Strategic Planning
the process of developing and maintaining a fit between:
- the organization’s goals and capabilities
- chaning market opportunities
What questions does strategic planning answer?
What do we want to do, how will we do it and what is the market doing?
What are the 4 steps in strategic planning?
Define mission statement, define company goals and objectives, design business portfolio, design market strategy
Mission Statement
statement of the organization’s purpose, should be market oriented and defined in terms of the customers’ needs and wants
What is an example of a product oriented mission statement?
We sell the best cosmetics
What is an example of a market oriented mission statement?
We sell lifestyle and self-expression, success and status
Company Goals and Objectives
Needs goals related to the mission
Needs objectives related to the goals
Business Portfolio
the collection of businesses and products that make up the company:
- How should we organize our offerings into SBUs?
- Do these fulfill our company mission & goals
Designing Market Strategy
Product, brand and business unit level
- Understanding the company’s situation (SWOT)
- Segmenting the market, targeting specific customers and positioning the product
- 4Ps
SWOT Analysis
Framework for reviewing strategy, position, and direction of the company
- Strengths, Weaknesses, Opportunities, Threats
How can a company analyze its current business portfolio and Strategic Business Units (SBUs)
Use the BCG Matrix to develop future strategies for growth, or downsizing, with the product-market expansion grid
BCG Matrix - 3 questions
How are our SBUs performing now?
How might they perform in the future?
How much should we invest in each SBU?
What makes up the BCG Matrix?
(x & y axis)
On the x-axis is market share, left side high & right side low
On the y-axis is market growth rate, low on bottom and high on top
What makes up the BCG Matrix? (Four positions & symbols)
Top left: Star - defend position
Top right: Question Mark - use cash to make it into Star
Bottom left: Cash Cow - nurture to generate cash
Bottom right: Dog - fix or abandon
Product-Market Expansion Grid
Answers: How can we grow? (Future oriented)
Grid contains: existing/new markets on y-axis and existing/new products on x-axis
