Marketing Chapter 2

Front 1

Strategic Planning

Back 1

The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. Strategic planning sets the stage for the rest of the planning of the firm.

Front 2

Mission Statement

Back 2

A statement of what the organization is and what it wants to achieve in terms of long term goals in the larger environment. A good Mission Statement should be focused on what value you can bring to the customer.

Front 3

Setting Company Objectives and Goals

Back 3

Turn the mission statement into detailed supporting objectives for each level of management. Marketing strats and programs should be developed to support these objectives.

Front 4

Designing the Business Portfolio

Back 4

Building the collection of businesses and products that best plays to the company's strengths, weaknesses and opportunities presented by the environment

Front 5

Strategic Business Units

Back 5

The key businesses that make up a larger company. Can be a division within the company, a product line or a single product or brand.

Front 6

Portfolio Analsis

Back 6

The process by which management evaluates the products and businesses that make up the company. More profitable SBUs are given more resources than less profitable ones.

Front 7

The Boston Consulting Group Approach

Back 7

A portfolio planning method that evaluated SBUs based on a growth-share matrix. The matrix divides SBUs into Stars, Dogs, Cash Cows and Question Marks based on relative market share and market growth rate.

Front 8

Stars

Back 8

High growth, high share businesses that require heavy investment to finance their rapid growth. Once growth stalls they become cash cows.

Front 9

Cash Cows

Back 9

Low growth, high share businesses that are successful and established. Require less investment.

Front 10

Dogs

Back 10

Low growth, low share businesses that may be able to maintain their own operations but will not be large sources of cash

Front 11

Question Mark

Back 11

Low share, high growth businesses that require a low of cash to hold their share. Management which of these businesses they should build into stars and which of these it must cut loose.

Front 12

Product/Market Expansion Grid

Back 12

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Front 13

Market Penetration

Back 13

A strategy for company growth by increasing sales of current products to current market segments without changing the product. (Promotions, adjusting advertising or pricing)

Front 14

Market Development

Back 14

A strategy for company growth by identifying and developing new market segments for current company products (Emerging economies or new demographics)

Front 15

Product Development

Back 15

A strategy for growth by offering modified or new products to current market segments

Front 16

Diversification

Back 16

A strategy for growth through starting up or acquiring businesses outside the company's current products and markets.

Front 17

Downsizing

Back 17

Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy

Front 18

Value Chain

Back 18

The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firms products. Each department in the company can be thought of as a link in the _______.

Front 19

Value Delivery Network

Back 19

The network made up of the company, suppliers, distributors and customers who partner with each other to improve the performance of the entire system.

Front 20

Market Segmentation

Back 20

Dividing a market into distinct groups of buyers who have different needs for different products

Front 21

Market Targeting

Back 21

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. A company targets segments in which it can profitably generate the greatest customer value and sustain it over time.

Front 22

Market Differentiation

Back 22

Actually differentiating the market offering to create superior customer value. Effective positioning begins with differentiation.

Front 23

Market Positioning

Back 23

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

Front 24

Marketing Mix

Back 24

The set of marketing tools that the firm blends to produce the response it wants from the market. Consists of everything the firm can do to influence the demand for its product.

Front 25

Product

Back 25

The actual market offering that make take the form of a good or service

Front 26

Price

Back 26

The amount of money a customer must pay to obtain the product.

Front 27

Place

Back 27

The distribution of the product and the availability of it.

Front 28

Promotion

Back 28

Activities that communicate the merits of the product to the customer.

Front 29

The 4 C's

Back 29

Customer Solution

Customer Cost

Convenience

Communication

Front 30

Marketing Analysis

Back 30

Managing the marketing function begins with a complete analysis of the company's situation. Conduct a SWOT analysis.

Front 31

Marketing Planning

Back 31

Deciding on marketing strategies that will help the company attain its overall objectives.

Front 32

Marketing Implementation

Back 32

The Process that turns strategic planning into marketing actions to accomplish objectives

Front 33

Marketing Department Organization

Back 33

The company must design a marketing organization that can carry out marketing actions to accomplish strategic marketing objectives.

Front 34

Functional Marketing Organization

Back 34

The most common type of marketing organization. Different marketing activities are headed by different specialists like Customer Service or Sales managers.

Front 35

Geographic Marketing Organization

Back 35

Sales and marketing people are assigned to different countries or regions. Often used by International companies.

Front 36

Product Management Marketing Organization

Back 36

A company with many products may choose to elect managers to develop and implement complete marketing strategies for their assigned brand.

Front 37

Customer Management Marketing Organization

Back 37

A company that chooses to manage client portfolios rather than manage portfolios of brands.

Front 38

Marketing Control

Back 38

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained.

Front 39

Operating Control

Back 39

Involves checking ongoing performance against the annual plan and taking corrective action when necessary to stay on course. Involves determining the profitability of different products or regions.

Front 40

Strategic Control

Back 40

Looking at whether the company's basic strategies are well matched to its oppourtunities

Front 41

Return on Marketing Invesment

Back 41

The net return from a marketing investment divided by the costs of the marketing investment.