Strategic Planning and Marketing Strategy (Chapter 2)

Vocabulary flashcards covering corporate strategic planning, SWOT analysis, segmentation, targeting, positioning, the Four Ps, implementation, control, growth strategies, and marketing ROI.

Steps in Strategic Planning

A four-step strategic planning process consisting of defining the company mission, setting company objectives and goals, and designing the business portfolio at the corporate level, followed by planning marketing and other functional strategies at the business unit, product, and market level.

Mission Statement

A statement of the organization's purpose that is market oriented, emphasizing company strengths and focusing on customer needs and the customer experience.

Market-Oriented Definition

A business definition stated in terms of satisfying basic customer needs rather than focusing strictly on company products or services.

Product-Oriented Definition

A business definition that focuses narrowly on the specific goods or services a company sells or produces.

SWOT Analysis

A widely used situation analysis tool designed to match a company's internal strengths to attractive environmental opportunities while eliminating or overcoming weaknesses and minimizing threats.

Strengths (SWOT)

Internal capabilities that may help a company reach its objectives.

Weaknesses (SWOT)

Internal limitations that may interfere with a company's ability to achieve its objectives.

Opportunities (SWOT)

External factors that the company may be able to exploit to its advantage.

Threats (SWOT)

Current and emerging external factors that may challenge the company's performance.

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours, and who might require separate products or marketing programs.

Market Targeting

Evaluating each market segment's attractiveness and selecting one or more segments to enter.

Positioning

Positioning the product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market Differentiation

Differentiating the market offering to create superior customer value.

Marketing Mix (Four Ps)

The set of tactical marketing tools—Product, Price, Place, and Promotion—blended into an integrated program that engages target customers and delivers intended customer value.

Product (Marketing Mix)

The tactical marketing element encompassing variety, quality, design, features, brand name, packaging, and services offered to target customers.

Price (Marketing Mix)

The tactical marketing element encompassing list price, discounts, allowances, payment period, and credit terms.

Place (Marketing Mix)

The tactical marketing element encompassing supply chains, channel coverage, channel management, logistics, and transportation.

Promotion (Marketing Mix)

The tactical marketing element encompassing advertising, personal selling, sales promotion, public relations, and direct and digital communications.

Market Implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives, addressing the who, where, when, and how.

Marketing Control

Measuring and evaluating the results of marketing strategies and plans, including operating control and strategic control, and taking corrective action.

Operating Control

A form of marketing control that ensures the company achieves its sales, profits, and other goals.

Strategic Control

A form of marketing control that involves looking at whether the company's basic strategies are well matched to its opportunities.

Product/Market Expansion Grid

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Market Penetration

Company growth by increasing sales of existing products to existing market segments.

Market Development

Company growth by developing new markets for existing products, such as Starbucks expanding rapidly in China by opening a new store every 15 hours.

Product Development

Company growth by offering modified or new products to existing markets.

Diversification

Company growth by starting or buying businesses outside current products and markets, such as Starbucks entering the ultra-premium market with Starbucks Reserve Roasteries and Princi Bakery and Cafe shops.

Downsizing

Abandoning or pruning products or business units that are unprofitable or no longer fit the company's overall strategy due to rapid growth, lack of experience, changing market environments, or product decline.

Marketing Return on Investment (Marketing ROI)

The net return from a marketing investment divided by the costs of the marketing investment, evaluated using standard performance measures as well as customer-centred measures.