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24 Cards in this Set
- Front
- Back
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What is Strategy? |
An organisation's long-term course of action designed to deliver a unique customer experience while achieving its goals Marketing helps set this direction |
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Setting Strategic Direction ( 3 C's) |
Competencies
Competitors |
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Competencies |
Distinguish business from competitors What can we do that is different and unique? (skills, technologies, resources) |
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Customers |
Provide genuine value to customers (Who are the customers? Where are they? Are we reaching all of them?) |
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Competitors |
Increasing amounts of competition (What are they doing?) |
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Growth Strategies (Where do we want to go) |
Knowing where the organisation is at the present time, enables managers to set direction for the firm Use Business Profile Analysis |
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Business Profile Analysis |
Technique created by BCG that managers use to quantify performance measures and growth targets to analyse their firms BPU's Determines which SBU generates cash and which ones require cash for growth (BCG Matrix) |
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Strategic Business Units (SBU's) |
Each group is a strategic business unit which is a subsidiary division or unit of an organisation that markets a set of related offerings to a clearly defined target |
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BCG Matrix |
Stars = where you want to be Cash Cows = Reliable products that people need, with loyal customers Dogs = Duds Question Marks = Could turn into a star but needs money invested |
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Cash Cows |
Generate large amounts of money They have dominant shares of slow-growth markets They provide cash to cover the overhead and to invest in other SBUs |
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Stars |
High share in high-growth markets that may need extra cash to finance growth When growth slows, it is likely that they become cash cows |
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Question Marks |
SBUs with low share in high-growth markets Require a lot of cash to succeed and maintain market share |
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Dogs |
Low shares in slow-growth markets consume more cash than they generate Question marks become stars, stars become cash cows, cash cows become dogs |
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Diversification Analysis |
Is a technique that helps firms search for growth opportunities from among current and new markets as well as current and new products For any market, there is both current product and a new product (and vice Versa) |
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FOUR MARKET - PRODUCT STRATEGIES (Ansoff Matrix) |
1. Market Penetration 2. Market Development 3. Product Development 4. Diversification |
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1. Market Penetration |
Marketing strategy to increase sales of current products in current markets Selling more and increase market saturation in current market |
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2. Market Development |
Same product New Market New promotion strategy |
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3. Product Development |
New Product
Current Market |
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4. Diversification |
Whole new market Whole new market |
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STRATEGIC MARKETING PROCESS |
Three Phases: Planning Implementation Evaluation |
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Three Steps in the Planning Phase |
1. Situational Analysis (SWOT) 2. Market Product Focus and Goal Setting 3. The Marketing Program |
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1. Situational Analysis |
Strengths, Weakness, Opportunity, Threat Helps to identify industry trends, analyse competitors and research present and prospective customers Allows organisations to build strength, correct a weakness, exploit opportunity and avoid threat |
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2. Market Product Focus and Goal Setting |
Set marketing and product goals Select target market Find point of difference Position the product |
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3. The Marketing Program |
The Four P's : Price - right product at right price Place - availability at the right place Product- right product to satisfy consumer needs Promotion - informing potential customers |
