Developing Marketing Strategies and a Marketing Plan

Flashcards covering key vocabulary related to marketing strategies, planning process, situation analysis (SWOT), STP (Segmentation, Targeting, Positioning), the Marketing Mix (4 Ps), performance metrics, portfolio analysis (BCG Matrix), and growth strategies.

Strategy

A plan of action designed to achieve a long-term or overall aim.

Marketing Strategy

A plan for how an organization will achieve its marketing objectives, often involving Segmentation, Targeting, and Positioning (STP) and the Marketing Mix.

Marketing Plan

A written document that outlines an organization's marketing objectives, strategies, and programs for a specific period.

Business Mission Statement

A broad description of a firm’s objectives, the scope of activities it plans to undertake, and its purpose to its customers, markets, products, and technologies.

Corporate Objectives

Goals that are measurable, time-dependent, single-minded, realistic, and integrated across all business levels.

Situation Analysis

An assessment of an organization's internal and external environment to identify opportunities and threats for developing a marketing strategy.

SWOT Analysis

A strategic planning tool used to identify an organization's internal Strengths and Weaknesses, and external Opportunities and Threats.

Strengths (SWOT)

Positive internal attributes of the firm, such as a diverse brand portfolio or strong celebrity endorsers.

Weaknesses (SWOT)

Negative internal attributes of the firm that could hinder performance, such as lower brand awareness or less market share than rivals.

Opportunities (SWOT)

Positive aspects of the external environment that the firm could exploit, such as an expanding health food market or growth in global market share.

Threats (SWOT)

Negative aspects of the external environment that could challenge the firm, such as water scarcity, soda taxes, or increasing competition.

Customer Analysis

The process of understanding target customers, including their demographics, needs, values, satisfaction levels, and emerging trends.

Competitor Analysis

The process of identifying key competitors, evaluating their performance, strategies, and identifying their competitive advantages.

STP

An abbreviation for Segmentation, Targeting, and Positioning, which are key steps in identifying and evaluating marketing opportunities.

Market Segmentation

The process of dividing a market into distinct groups of customers with different needs, characteristics, or behaviors who might require separate products or marketing mixes.

Targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter and focus marketing efforts on.

Positioning

The process of defining the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the product or brand relative to competitors.

Marketing Mix

The combination of Product, Price, Place, and Promotion strategies (the 4 Ps) an organization uses to implement its marketing plan and achieve objectives.

Product (Marketing Mix)

The element of the marketing mix focused on creating value through the design, features, quality, and branding of goods or services offered to consumers.

Place (Marketing Mix)

The element of the marketing mix focused on delivering value by getting the product to the right place, at the right time, and in the right quantities.

Price (Marketing Mix)

The element of the marketing mix focused on capturing value for the firm by setting appropriate monetary charges for products or services.

Promotion (Marketing Mix)

The element of the marketing mix focused on communicating value to target customers through various marketing communications, such as advertising, public relations, and sales promotions.

Marketing Metrics

Measures used to evaluate the results of a marketing strategy and implementation program, helping to explain past performance and project future outcomes.

Financial Performance Metrics

Measures such as sales units, revenue, and gross profit, used to assess the financial outcomes attributable to marketing efforts.

Marketing Performance Metrics

Measures such as market share, customer satisfaction, customer loyalty, brand awareness, brand perception, and purchase intent, used to gauge marketing effectiveness.

Portfolio Analysis

A management tool used to evaluate an organization's various products or brands relative to market growth rate and their relative market share, often using matrices like the BCG Matrix.

Boston Consulting Group (BCG) Matrix

A portfolio analysis method that classifies products or brands into four categories (Stars, Question Marks, Cash Cows, and Dogs) based on market growth rate and relative market share.

Relative Market Share

A measure of a product's strength in a particular market, calculated as the market share (or revenue) divided by the market share of the largest competitor in that sector.

Star (BCG Matrix)

A business unit or product with a high market growth rate and high relative market share, typically requiring significant investment to maintain its growth.

Question Mark (BCG Matrix)

A business unit or product with a high market growth rate but low relative market share, uncertain of its future potential and requiring decisions on whether to invest heavily or divest.

Cash Cow (BCG Matrix)

A business unit or product with a low market growth rate but high relative market share, generating more cash than it needs and providing funds for other ventures.

Dog (BCG Matrix)

A business unit or product with a low market growth rate and low relative market share, often recommended for divestment due to limited future potential.

Growth Strategies

Approaches firms use to expand their business, categorized into market penetration, product development, market development, and diversification.

Market Penetration Strategy

A growth strategy that focuses on selling existing products or services to existing customers or increasing usage among current customers in current markets.

Product Development Strategy

A growth strategy that involves offering new products or services to existing markets or customer segments.

Market Development Strategy

A growth strategy that focuses on selling existing products or services to new markets, such as through global expansion or targeting new demographic segments.

Diversification Strategy

A growth strategy that involves introducing completely new products or services into entirely new markets.

Related Diversification

A diversification strategy where the new product or market venture shares some similarities or synergies with the firm's existing core business.

Unrelated Diversification

A diversification strategy where the new product or market venture is completely different from the firm's core business, typically carrying higher risk.