Week 2 Flashcards
What is strategy
long term course of actions that delivers unique customer experience while achieving its goals
Strategic business unit
subsidiary, unit, division that markets a set of related offerings to a clearly defined target market
strategy invisionary organizations what is a must in a successful organization?
must be forward looking, anticipating, responding quickly
a visionary organization
- foundation - why?
- direction - what?
- strategy - how?
organizational foundation (why)
- vision or mission - function in a society
- core values - principles
- organizational culture - set of values, ideas, attitudes, and norms of behavior
visionary organization - direction (what)
(1) where are we now?
(2) where do we want to go?
Business portfolio analysis (BCG matrix)
to determine which SBU generates cash and requires cash to fund the growth opportunities
Diversification analysis (market product)
help firm search growth opportunities among current and new markets as well as products
4 market product strategy
- market penetration
- market development
- product development
- diversification
strategic marketing process
strategic planning is
the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
strategic marketing process - timeline
- planning phase
- implementation phase
- obtain resources
- design the marketing organization
- define task, deadlines
- execute the program - timeline - evaluation phase
- compare results with goals to identify deviations, planning gap
- act on these deviations (exploit positive, correcting negative)
3 steps in planning phase
- SWOT analysis (identify trends, competitior, itself, and organization’s customer)
- market product focus and goal-setting - target market, points of differences, SMART goals
- design marketing program (marketing strategy and 3 marketing tactics and is)
today’s organization (3)
- functional level: groups of specialist create value
- department: functions such as finance and marketing
- cross functional teams: different departments contribute performance goal
marketing dashboard and metric
marketing dashboard: the visual computer display of the essential information related to achieving a marketing objective
marketing metric: a system of measurement
dollar sales and dollar market share formula
dollar sales: average price x quantity sold
dollar market share: company sales : total industry sales
setting strategic direction - where are we now?
- competencies
- competitive advantage
- customers
- competitors
setting strategic direction - where do we want to go?
Business portfolio analysis (BCG Matrix)
1. question marks: low share of high-growth market
2. stars: high share of high-growth markets
3. cash cows: generate large amounts of cash
4. dogs: low share of slow-growth markets
Diversification Analysis
1. market penetration: increase sales of current products
2. market development: sell current products to new market
3. product development: sell new product to new market
4. diversification: develop new products to sell in new markets
strategic marketing process
4 Principles and assumptions
- customers are different
- customers change
- competitors change and react
- organizational resources are limited
