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39 Cards in this Set
- Front
- Back
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*Strategic Planning |
Process of developing and maintaining strategic fit between organization's goals and capabilities and its changing marketing opportunities. |
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Developing a Mission Statement |
A statement of the organization's purpose-what it wants to accomplish the larger environment.
An invisible hand that guides people in the organization
Should be market-oriented and satisfy basic customer needs
2. Who is the customer? 3. What do customers value? 4. What should the business be? |
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*Steps in Strategic Planning (Diagram p63) |
1. Defining the company mission--> 2. Setting company objectives and goals--> 3. Designing the business portfolio--> 4. Planning marketing and other functional strategies (Business unit, product, and market level) |
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Product-Oriented vs Market-Oriented Mission Statements |
Product-Oriented= say percisely what they make Market-Oriented= satisfying basic customer needs that are broad enough to apply even after technology advances
Ex: Facebook P= We are an online social network M= We connect people around the world and help them share important moments in their lives. |
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Business Portfolio |
Fits the company's strengths and weaknesses to opportunities in the environment
1. Company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. 2. Shape future portfolio by developing strategies for growth and downsizing |
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*Portfolio Analysis |
Management evaluates products and businesses that make up the company
1. Strategic Business Units (SBU's)- Identify key businesses that make up the company Ex: company division, product line within division, single product/brand 2. Assessment of attractiveness of its various SBUs and decides how much support each deserves 3. Strength of SBU's position in market/industry |
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*Growth Share Matrix (Diagram p67) |
1. Star- High Growth, High-Share (Need heavy investments to finance rapid growth, eventually growth will slow down and it will become Cash Cow)
2. Cash Cow- Low Growth, High Share
3. Question Mark- High Growth, Low Share (Require lots of cash to hold their share, management decides which become stars or which become phased out)
4. Dog- Low Growth, Low Share (May generate enough cash to maintain itself but do not look promising in long run) 1. Build 2. Hold 3. Harvest 4. Divest (selling/phasing out) |
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Disadvantages to Matrix Approach |
1. Hard to plan for future 2. Difficult, time-consuming, and costly to implement
*Today's strategic planning has been decentralized, responsibility is in the hands of cross-functional teams of divisional managers |
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*Product/Market Expansion Grid (Diagram p69) |
Market Penetration- Existing markets and products Product Development- Existing markets and new products Market Development- New markets, and existing products Diversification- New markets and products |
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*Market Penetration |
Making more sales to current customers without changing its original products
Ex: May add stores |
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*Market Development |
Identifying and developing new markets for its current products
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*Product Development |
Offering modified or new products to current markets
Ex: introducing light roast coffee styles |
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*Diversification |
Starting up or buying businesses beyond its current products and markets
Ex: Investing in high-quality juices |
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*Reasons for Downsizing |
Reduction of business portfolio by eliminating products or business units that are not profitable
1. Firm may have grown too fast or entered areas where it lacks experience. 2. Market environment might change 3. Age and Die- no longer trend or popular |
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Company's strategic plan establishes.. |
what kinds of businesses the company will operate and its objectives for each. Then more detailed planning takes place. |
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Major Functional Departments |
Marketing, finance, accounting, purchasing, operations, info systems, human resources, and others... |
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Marketing plays key role in company's strategic planning by: |
1. Provides a guiding philosophy (marketing concept) that suggests the company strategy should revolve around building profitable relationships with important consumer groups. 2. Provides inputs to strategic planners by helping to identify attractive market opportunities and assessing firm's potential to take advantage of them 3. Designs strategies for reaching the unit's objectives. |
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*Value Chain |
Each department carries out value-creating activities to design, produce, market, deliver, and support the firm's products.
Firm not only depends on how well each department performs it work but also on how well the carious departments coordinate their activities.
Only as strong as its weakest link |
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*Value Delivery Network |
Companies are partnering with other members of supply chain suppliers, distributors, customers to improve performance.
Ex: Toyota performance against Ford depends on quality o f Toyota's overall value delivery network vs Ford's Even if they make the best cars, they may lose to Ford if Ford offers more customer satisfying sales and service |
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Marketing Strategy (Diagram p 72) |
Marketing logic by which the company hopes to create this customer value and achieve these profitable relationships.
(Review Diagram) |
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*The 4 C's |
1. Customer Solution 2. Customer Cost 3. Convenience 4. Communication |
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*SWOT Analysis |
Evaluates company's overall:
S trengths W eaknesses O pportunities T hreats |
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Strengths |
Internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives |
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Weaknesses |
Internal limitations, negative situational factors that may interfere with company performance. |
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Opportunities |
Favorable factors or trends in the external environment that the company may be able to exploit to its advantage. |
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Threats |
Unfavorable external factors or trends that may present challenges to performance |
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*Marketing Implementation |
Process that turns marketing plans into marketing actions to accomplish strategic marketing objectives. Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when and how. |
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Chief Marketing Officer (CMO) |
Heads up company's entire marketing operation and represents marketing on the company's top management team. |
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*Functional Organization |
Different marketing activities are headed by a functional specialist- sales manager, advertising manager, marketing research manager, customer service manager, or a new product manager. |
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*Geographic Organization |
Company that sells across the country or internationally |
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*Product Management Organization |
Companies with many different products/ brands
A product manager develops and implements a complete strategy and marketing program for specific product or brand. |
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*Market/Customer Management Organization |
Companies that sell one product line to many different types of markets and customers who have different needs and preferences.aM |
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*Marketing Control |
Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained.
4 steps! 1. Management sets specific marketing goals. 2. Measures its performance in the marketplace 3. Evaluates the causes of any differences between expected and actual performance 4. Management takes corrective action programs or even changing the goals. |
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Operating Control |
Checking ongoing performance against the annual plan and taking corrective action when necessary.
Purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan.
Determines profitability of different products, territories, markets, and channels |
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Strategic Control |
Involves looking at whether the company's basic strategies are well matched to its opportunities. |
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*Return on Marketing Investment (ROI) |
Net return from a marketing investment divided by the cost of the marketing investment.
Measures the profits generated by investments in marketing activities. |
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Marketing Dashboards |
Meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance. |
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*Strategic Business Units (SBU's) |
Can be a Company division Productive within a division Single product or brand Difficulty in defining it and measuring market share growth Time Consuming Expensive Focus on current business, not future planning |
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*Managing the Marketing Effort (Diagram) |
Analysis-->Planning-->Developing-->Implementation-->Control-->Evaluate-->Take Corrective Action-->Implementation or Developing |
