Chapter 2: Partnering to Build Customer Engagement, Value, and Relationships

Strategic Planning

the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing market opportunities

Mission Statement

describes the organization’s mission and what it wants to accomplish in the larger environment

Business Portfolio

the collection of businesses and products that make up a company

Downsizing

carefully pruning, harvesting, or divesting brands or business that no longer fit the firm’s strategy

Product/Market Expansion Grid

crucial model in which all strategies involve one or a combination of the four factors (new, current products and services, and markets)

Marketing Concept

suggests that company strategy should revolve around building profitable customer relationships

Internal Value Chain

the series of departments that carry out value-creating activities to design, produce, market, deliver, and support the firm’s products

Marketing Strategy

logic by which the company hopes to achieve profitable customer relationships

Market Segmentation

require separate marketing programs

Market Segment

set of marketing efforts

Market Targeting

one or more segments to enter

Differentiation

give more value

Market Positioning

target customer’s minds

Positioning

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

Product

customer solution

Price

customer cost

Place

covenience

Market Planning

Involves deciding on strategies that help the company attain its overall strategic objectives. Includes target markets, positioning, the marketing mix, and marketing expenditure plans.

Marketing Implementation

Turns marketing plans into marketing actions to accomplish strategic objectives. Address the who, where, when, and how.

Marketing Organizations

use functional, geographic, product, market/customer, or combined structures

Marketing Control

evaluates results and takes corrective action to ensure objectives are met

Operating Control

checks ongoing performance against the annual plan

Strategic Control

determines whether the company’s basic strategies match its market

Marketing ROI

the net return from a marketing investment divided by the cost of that investment

Common Performance Measures

include brand awareness, sales, market share, customer acquisition, customer retention, customer lifetime value, and customer satisfaction

Marketing Dashboard

useful set of marketing performance measures shown in a single display