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52 Cards in this Set

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What is a business plan?
The decisions that guide the entire organization or its business units
What is a marketing plan?
describes the marketing environment, outlines the marketing strategies, and identifies how the strategies will be implemented, monitored, & controlled.
What are the levels of strategic planning?
Strategic Planning
Functional Planning
Operational Planning
What are the three characteristics of an SBU?
1. It is a business or collection of related businesses that can be planned separately from the rest of the company.
2. It has its own competitors.
3. It has a manager who is responsible for strategic planning and profit performance.
What are the Steps in Strategic Planning?
Step 1: Define the Mission
“What is the firm’s business?”
Step 2: Evaluate the Internal and External Environment
SWOT Analysis
Step 3: Set Organization or SBU Objectives
Specific
Measurable
Attainable (Realistic)
Step 4: Establish the Business Portfolio
What is on the Vertical Axis?
Market growth rate
Above 10% considered high
What is on the Horizontal Axis?
Relative market share
Ranges from 0.1x to 10x
What are stars?
SBUs whose products have dominant market share in high growth markets
What are question marks?
SBUs whose products have low market share in high growth markets
What are Cash Cows?
SBUs whose products have dominant market share in low growth markets
What are Dogs?
Nobody wants these. Low market share in low growth market.
What are the Four possible SBU objectives?
Build
Hold
Harvest
Divest
What are the steps in Functional Planning?
Step 1: Situation Analysis
Step 2: Set Marketing Objective
Step 3: Develop Marketing Strategies
Selecting a Target Market
Segmenting the market
Selecting target market
Developing the marketing program
Step 4: Implement Marketing Strategies
Step 5: Monitor and Control Marketing Strategies
Compare results with plan
Act on deviations
What is Operational Planning?
Day-to-day execution of the marketing plan
Performed by first-line supervisors
Timed over 1-2 months
What is corporate culture?
a system of shared attitudes and behaviors held by the employees that distinguish it from other organizations.
Purchasers are influenced by
marketing mix (4Ps) controllable
uncontrollable external elements
What is the economy?
pertains to the income, expenditures, and resources that affect the cost of running a business and household.
What are the macroeconomic conditions?
Inflation
Consumer confidence
What is competition?
refers to the alternative firms that could provide a product to satisfy a specific market's needs.
What is technology?
refers to inventions or innovations from applied science or engineering.
What are three types of product related legislation?
Company Protection
Consumer Protection
Both Company and Consumer Protection
What are demographics?
Statistics that measure observable aspects of a population.
What are the age cohorts?
Pre-Depression Generation (born before 1930)
Depression Generation (1930-1945)
Baby Boom Generation (1946-1964)
Generation X (1965-1976)
Generation Y (born after 1976) (1979-1994)
What is culture?
is the set of values, ideas, and attitudes of a homogeneous group of people that are transmitted from one generation to the next.
What are the physical aspects a marketer should be aware of?
Natural resources
Shortages of raw materials
Increased cost of energy
Climate
Weather
What is business planning?
An ongoing process of making decisions that guide the firm both in the short term and for the long haul
What is the business plan?
A plan that includes the decisions that guide the entire organization
What is the marketing plan?
A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
What is strategic planning?
A managerial decision process that matches an organization's resources and capabilities to its market opportunities for long term growth and survival
What is functional planning?
A decision process that concentrates on developing detailed planes for strategies and tactics for the short term that support an organization's long-term strategic plan
What is operational planning?
A decision process that focuses on developing detailed plans for day-to-day activtieis that carry out an organization's functional plans
What are strategic business units (SBUs)?
Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
What is a mission statement?
A formal statement in an organization's strategic plan that describes the overall purpose of the orgnaization and what it intends to achieve in terms of its customers, products, and resources
What is an internal environment?
The controllable elements inside an orgnaization, including its people, its facilities, and how it does things that influence the operations of the organization
What is the external environment?
The uncontrollable elements outside an organiation that may affect its performance either positively or negatively
What is a SWOT analysis?
An analysis of an orgnaizaiton's strengths and weaknessess and the opportunities and threats in its _external_ environment
What is a business portfolio?
The group of differnet products or brands owned by an organization and characterized by different income-generating and growth capabilities
What is portfolio analysis?
A management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units
What is the BCG growth-market share matrix?
A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
What are market penetration strategies?
growth strategies designed to increase sales of existing products to current customers, nonusers, and sers of competitive brands in served markets
What are market development strategies?
Growth strategies that introduce existing products to new markets
What are product development strategies?
growth strategies that focus on selling new products in served markets
What are diversification strategies?
Growth strategies that emphasize oth new products and new markets
What is control?
A process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
What are operational plans?
Plans that focus on the day-to-day execution of the marketing plan. These include detailed directions for the specific activities to be carried out, who will be responsible for them, and timelines for accomplishing the tasks
What is corporate culture?
The set of values, norms, and beliefs that influence the behavior of everyone in the organization
What is the business cycle?
The overall patterns of change in the eocnom - including periods of prosperity, recession, depression, and recovery - that affect consumer and business purchasing power.
What is competitive advantage?
The process of gathering and analyzing publicly available information about rivals
What is discretionary income?
The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing
What is product competition?
When firms offering different procuts compete to satisfy the same consumer needs and wants
What is brand competition?
When firms offering similar goods or services compete on the basis of their brand's reputation or perceived benefits
What are demographics?
Statistics that measure observable aspects of a population, including size, age, gender, ethic group, income, education, occupation, and family structure