Ch 2 Marketing

Strategic Planning

the process of developing and maintaining a profitable long-term fit between the organization’s goals and capabilities and its changing marketing opportunities

Mission statement

a statement of the organization’s purpose—what it wants to accomplish in the larger environment

What is the correct sequence of the steps in the strategic planning process

Define the company mission, set company objectives and goals, design the business portfolio, and plan the marketing and other functional strategies

Business portfolio

The collection of businesses and products that make up a company

Portfolio analysis

management evaluates and plans for the future of the products and businesses that make up the company

Cash cows

Low growth, high market share

Stars

High growth, high market share

Question marks

High growth, low market share

Dogs

Low growth, low market share

Market penetration

Existing products, existing markets

Market development

Existing products, new markets

Product development

New products, existing markets

Diversification

New products, new markets

Most standard portfolio analysis methods evaluate strategic business units (SBUs) on their performance in two important dimensions. What are these two dimensions?

The attractiveness of the SBU's market or industry in terms of growth and the SBU’s market share

Internal value chain

the full set of internal business activities a company performs to transform raw inputs into a finished product or service that delivers value to customers

Value delivery network

a system made up of a company, its suppliers, its distributors, and its customers who partner together to improve the performance of the entire system in creating and delivering customer value

The idea of focusing on creating customer value and building profitable relationships with important consumer groups is known as

the marketing concept

compose a company's external value network

Suppliers, distributors, and customers

Marketing strategy

the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships

The 4 P’s

Product, promotion, place, price

Market segmentation

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market segment

have similar needs and therefore respond in a similar way to a given set of marketing efforts

Market targeting

involves evaluating each market segment’s attractiveness and selecting one or more segments to enter

Positioning

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

Differentiation

differentiating the company’s market offering to create superior or different customer value relative to the competition

Marketing mix

the set of marketing tools that the firm blends to produce the response it wants in the target market

SWOT analysis

evaluates the company’s overall strengths (S) ( + internal), weaknesses (W) ( - internal), opportunities (O) ( + external), and threats (T) ( - external)

Marketing implementation

turns marketing plans into marketing actions to accomplish strategic marketing objectives

Marketing control

regularly evaluating results and taking corrective action to ensure that the objectives are attained

Marketing return on investment (marketing ROI)

net return from a marketing investment/the costs of that investment