chapter 22 - strategic marketing process

strategy, execution, culture, structure

the four basic business and management practices that are “what really works”

sales response function

relates the expense of the marketing effort to the marketing results obtained

share points

percentage points of market share, used as common basis of comparison to allocate marketing resources effectively for different product lines within the same firm

planning

marketing programs that define goals and the marketing mix strategies to achieve them

implementation

action memos that tell who is to do what by when

evaluation

corrective action memos, triggered by comparing results with goals, often using the firm’s marketing metrics and displayed in marketing dashboards

s-shape

the shape of a curve that compares annual sales revenue to annual marketing effort

long-range

marketing plans that consider what products and services to keep, add, and delete in the future using a portfolio analysis

annual plans

marketing plans that place a heavy emphasis on segmentation, targeting, and positioning, the marketing mix, and revenues/expenses

generic business strategy

a strategy that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitve advantage

cost leadership

general strategy focusing on reducing prices while having a broad target market

differentiation

general strategy focusing on charging a higher price while targeting a broad array of market segments

cost focus

general strategy that involves lowering costs but targeting a narrow range or market segments

differentiation focus

general strategy that involves higher prices and targets one or only a few market segments

blue ocean strategy

emphasizes the simultaneous pursuit of product or marketing program differentiation and lower cost in newly configured industries and markets

eliminate

the action to decrease costs that considers removal of factors that an industry has long competed on

reduce

the action to decrease costs where factors can be brought well below an industry standard

create

the action to increase differentiation where factors are generated that an industry has never offered

raise

the action to increase differentiation where factors are improved well above an industry standard

program champion

a person who is willing and able to “cut the red tape” to move a marketing program forward

line positions

managers who have the authority and responsibility to issue orders to people who report to them

staff positions

managers who have the authority and responsibility to advise people in line positions but cannot issue direct orders to them

matrix organization

when market-based groupings and product groupings are combined in an organizational structure

category manager

a manager who is responsible for an entire product line

management by exception

identifying results that deviate from plans to diagnose their causes and take new actions

marketing roi

the application of modern measurement technologies to understand, quantify, and optimize marketing spending