W2 - Strategic Marketing planning Flashcards
How do companies address markets?
They have Strategic Business Units (SBU’s) that have different brands serving different markets. Sometimes have different brands in the same market to cover different parts of the market and customer needs.
What is strategic planning?
The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities
What is a mission statement?
A statement of the organisation’s purpose - what it wants to accomplish in the larger environment. Why the brand or the company exists, what they want to accomplish in the larger environment
What should a mission statement include?
- Be customer focussed
- Be defined in terms of satisfying customer needs
- Be motivating to consumers
- Not be stated as making more sales or profits
How do market orientated mission statements differ from product orientated ones?
They are far more evocative, expressed in a far better way
What must the objectives of a SBU be?
he objectives of the business unit and the objectives of the brands within it must help deliver the braoder corporate objectives
What must objectives be?
SMART
What does SMART objectives stand for?
- Specific
- Measurable
- Achievable
- Realistic
- Time-bound
How are objectives used?
To develop marketing strategies to align with them
What is the order of who needs to achieve objectives first?
- The brand
- The SBU
- The Corporate
What is the business porfolio?
The collection of businesses and products that make up the company. Businesses in the portfolio are called Strategic Business Units
What are strategic business units?
Parts of the business under a larger company such as the Petcare SBU under Nestle with it’s own brands
What are the characteristics of SBUs?
- Each SBU operates in a unique product-market
- Each product market they compete in is broken into distinct consumer segments that have different needs and wants
- Each brand has a unique value proposition
- Each brand has a different deployment of the marketing mix
Why is segmenting the market important?
The more segments they can focus on with different products can increase market share
What does business profolio planning entail?
- Analysing the current business portfolio and deciding which businesses should receive more less or no investment
- Shape the future portfolio by developing strategies for growth and downsizing
What does the BCG matrix allow?
The BCG matrix allows us to plot the SBU’s into different boxes allowing us to see which businesses we should put time and money into
How can you evaluate an SBU?
- Looking at the attractiveness of the SBU’s market or industry
- The strength of the SBU’s position in that market or industry
What parts of the market does the BCG growth-share matrix evaluate?
- Market growth rate
- Relative market share
How are SBUs broken down by the BCG growth-share matrix?
Star
Cash cow
Question mark
Dog
What are the characteristics of a star?
High market growth, high relative market share
What are the characteristics of a cash cow?
Low market growth, high relative market share
What are the characteristics of a question mark?
High market growth, low relative market share
What are the characteristics of a dog?
Low market growth, low relative market share
What is the aim of the BCG growth-share matrix?
To turn question marks into stars
What 4 segments are there in the Ansoff matrix/ Product/market expansion grid?
- Market penetration
- Market development
- Product development
- Diversification
What is market penetration aimed at?
Existing products in existing markets
What is market development aimed at?
Existing products, new markets
What is product development aimed at?
Existing markets, new products
What is diversification aimed at?
New products, new markets
If an apparel company wants to increase its market penetration what could it do?
Change the marketing mix, design changes to existing stuff, advertising, promotion, price strategies, new distribution channels
If an apparel company wants to increase its market development what could it do?
- Look for new segments (such as younger demographics)
- Expand into new international markets with existing product s
How can product development help?
It can increase sales by modifying or launching new products for current markets
What are the 4 steps of corporate strategic planning?
- Define the mission
- Set objectives
- Establish business portfolio
- Develop growth strategies
MOPG
What is a marketing strategy?
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
What are the 4 steps of a marketing strategy?
- Engage in situational analysis
- Sets objectives
- Segmentation and targeting to decide customers and positioning to see how (strategy)
- Implements 4Ps to the plan
What are the 4 steps of a marketing strategy in questions?
- Where are we today
- Where do we want to be tomorrow
- How are we going to get there
- How do we measure our success
How do we carry out a situational analysis?
Use a SWOT analysis of the micro and macro environment
How should a firm set it’s marketing objectives?
Use the SMART structure
What does SWOT stand for/
Strengths (relative to competitors)
Weaknesses
Opportunities
Threats
How can you create a customer value-driven market strategy?
- Identify how the market can be segmented
- Identify which segments you want to target
- Establish a differentiated positioning for your brand
- Adjust your marketing mix
What is market targeting?
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to serve
What is market segmentation?
The process of analysing and dividing a market into distinct groups of buyers
What is positioning?
Arranging for a product to occupy a clear, distinctive and desirable place in the minds of target consumers relative to competing products
What are the 7Ps?
Product, Price, Place, Promotion, People, Process and Physical evidence
What 4 things do marketers have to take into account when developing strategy?
Product strategies
Pricing strategies
Promotional strategies
Distribution strategies
