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32 Cards in this Set
- Front
- Back
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Four Steps of Company-wide Strategic Planning
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(Corporate Level=steps 1-3)
1. Define company mission 2. Set company objectives and goals 3. Design business portfolio 4. Plan market and other functional strategies (business unit, product, market level) |
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Business Porfolio
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is the collection of businesses and products that make up the company
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Differentiation
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actually differentiating the firm's market offering to create superior customer value
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Diversification
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grow company by starting up/acquiring businesses outside company's current products and markets
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Growth-share Matrix
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is a portfolio-planning method that evaluates a company’s SBUs in terms of their market growth rate and relative share.
SBUs are classified as: Stars Cash cows Question marks Dogs |
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Growth-share Matrix
STARS |
high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows
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Growth-share Matrix
CASH COWS |
are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share
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Growth-share Matrix
QUESTION MARKS |
low-share business units in high-growth markets requiring a lot of cash to hold their share
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Growth-share Matrix
DOGS |
low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash
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Market Development
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identifying and developing new market segments for current company products
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Market Penetration
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increasing sales of current products to current market segments without changing the product
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Market Segment/Segmentation
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-group of consumers who respond in a similar way to given set of marketing efforts
-dividing market into distinct groups of buyers with distinct needs, characteristics, behavior and who might require different products or marketing programs |
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Market Targeting
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evaluating each market segment's attractiveness and selecing one or more segments to enter
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Marketing Audit
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comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend plan of action to improve
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Marketing Control
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measuring results of marketing plans/strategies and making changes to ensure that objectives are met
-Operating Control: checking ongoing performance against an annual plan and taking corrective action as needed -Strategic Control: looking at whether the company’s basic strategies are well matched to its opportunities |
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Marketing Implementation
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turning marketing plans/strategies into actions to accomplish objectives
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Marketing Mix
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controllable tactical marketing tools
Product, Price, Place, Promotion that firm blends to get desired marketing response |
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Marketing Strategy
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logic by which business unit hopes to achieve objectives
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Mission Statement
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statement of organization's purpose
1. Market-oriented= satisfies customers needs (better to use) 2. Product-oriented= product or service provided |
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Porfolio Analysis
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management evaluates products and businesses making up the company
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Positioning
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arranging for a product to occupy clear, distinctive, and desirable place relative to competing products for target market
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Product Development
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offering modified or new products to current market segments
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Product/Market Expansion
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tool to identify growth opportunities through
Market Penetration, Market Development, Product Development, Diversifiction |
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Marketing ROI
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net return from marketing investment divided by costs of marketing investment
NET RETURN OF MI/COSTS OF MI -Standard measures= brand awareness, sales, market share -Customer Measures= customer retention, aquisition, lifetime value |
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Strategic Planning
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developing and maintaining a strategic fit between the organizations goals and capabilities and its changing market opportunities
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SWOT Analysis
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Strengths, Weaknesses, Oppportunities, Threats
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Value Chain
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series of deparments that carry out activities to design, produce, market, deliver, support firm's products
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Value-delivery Network
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company, suppliers, distributors, customers who "partner" to improve performance of system
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4 P's
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PRODUCT-variety, quality, design, features, brand name, packaging, services
PRICE-list price, discounts, allowances, payment period, credit terms PLACE-channels, assortments, locations, transportation, logistics PROMOTION-ads, personal selling, sales promotion, PR |
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4 C's
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Product = Customer Solution
Price = Customer Cost Place = Convenience Promotion = Communication |
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Problems with Growth Matrix
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-Difficulty in defining SBUs and measuring market share and growth
-Time consuming -Expensive -Focus on current businesses, not future planning |
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Managing Marketing Effort
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requires constant analysis, planning, implementation, control
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