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organization

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legal entity that consists of people who share a common mission - divided into business firms and nonprofit organizations - foundation of its marketing strategy is having a clear understanding of the industry within which it competes - as limited human financial technological and other resources available to produce and market its offerings - every one must develop strategies to help focus and direct its efforts to accomplish its goals - all set a strategic direction - large organizations are usually complex and consist of three levels : Board of directors, Corporate level and Strategic business unit levels

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offerings

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products, services or ideas - create value for both the organization and its customers by satisfying their needs and wants

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business firm

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privately owned organization that serves its customers to earn a profit so that it can survive. -

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profit

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the money left after a business firm's total expenses are subtracted from its total revenues, and is the reward for the risk it understakes in marketing its offerings

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nonprofit organization

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a nongovernmental organization that serves its customers but does not have profit as an organizational goal, instead its goal may be operational efficiency or client satisfaction - must receive sufficient funds above its expenses to continue operations

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industry

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organizations that develop similar offerings - organization makes strategic decisions that reflect the dynamics of the industry to create a compelling and sustainable advantage for their offerings relative to those of competitors to achieve a superior level of performance

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strategy

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an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals

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corporate level

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top management directs overall strategy for the entire organization - board of directors and senior management officers with a variety of skills and experiences that are invaluable in establishing overall strategy

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strategic business unit

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a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers - at level, managers seta more specific strategic direction for their businesses to exploit value-creating opportunities - every one has a functional level

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functional level

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groups of specialists actually create value for the organization - department - organizations strategic direction becomes its most specific and focused. -

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cross-functional teams

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consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals - often created by senior management when developing marketing programs for new offerings or for improving existing ones

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three elements of successful organizations used to guide and inspire employees

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Values, mission and organizational culture

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core values

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the fundamental, passionate, and enduring principles that guide its conduct over time - developed by a firms founders or senior management - consistent with their essential beliefs and character - capture the firms heart and soul and serve to inspire and motivate its stakeholders -timeless and should not change due to short term financial operational or marketing concerns - must be communicated to and supported by its top management and employees

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mission

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a statement of the organization's function in society that often identifies its customers, markets, products, and technologies - often used interchangeably with vision - mission statement should be clear, concise meaningful, inspirational and long-term

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organizational culture

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the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

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business

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provides the clear, broad, underlying industry or market sector of an organization's offerings - an organization helps define by looking at the set of organizations that sell similiar offerings, those with direct competition with each other.

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business model

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the strategies an organization develops to provide value to the customers it serves - Technological innovation is often the trigger for change

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goals or objectives

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are statements of an accomplishment of a task to be achieved, often by a specific time - provide motivation - aid in decision making - have to get people committed - reward or punishment system - convert an organizations mission and business into long and short term performance targets -types business firms can pursue: profit, sales, market share, quality and customer satisfaction, employee welfare, and social responsibilities

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goal of sales

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if profits are acceptable, a firm may elect to maintain or increase its sales even though profits may not be maximized

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market share

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the ratio of sales revenue of the firm to the toal sales revenue of all firms in the industry, including the firm itself

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organizational strategies vary in at least two ways, depending on

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(1) a strategy's level in the organization (2) the offerings an organization provides to its customers

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marketing dashboard

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the visual computer display of the essential info related to achieving a marketing objective - often active hyperlinks provide further detail - idea comes form the display of info found on a car's dashboard -marketing manager glances at a graph or table and makes a decision whether to take action or to analyze the problem further.

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marketing metric

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a measure of the quantitative value or trend of a marketing activity or result - the choice of which to display is critical for a busy marketing manager who can overwhelmed with irrelevant data

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data visualization

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presents info about an organization's marketing metrics graphically so marketers can quickly (1) spot deviations from plans (2) take corrective actions

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marketing plan

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the road map for the marketing activities of an organization for a specified future time period

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competencies

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an organization's special capabilities- the skills, technologies, and resources- that distinguish it from other organizations and provide customer value - exploiting can lead to success - should be distinctive enough to provide a competitive advantage

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competitive advantage

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a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation -What do we do best. Distinct from other organizations. Should be provided by competencies Gaining - to be successful, have to do certain things - Every organization does certain things well. - choose market where ^^ made is the advantage, Do into your strength

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two techiniques to aid managers with setting a direction for the firm and allocating resources to move in that directions

answer

(1) business portfolio analysis (2) diversification analysis

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business portfolio analysis

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a technique that managers use to quantify performance measures and growth targets to analyze their firms' SBUs as though they were a collection of separate investments more than %75 of US firms have used this tool - developed by Boston Consulting group (BCG) - requires an organization to locate the position of each of its SBU's on grother-share matrix - primary strength lies in forcing a firm to place each of tis SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers and cash users in the future - Weakness arises from the difficulty in getting the needed info and incorporating complete data into Business portfolio analysis

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market growth rate

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annual rate of growth of the SBU's industry - the vertical axis

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relative market share

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the sales of the SBU divided by the sales of the largest firm in the industry - horizontal axis

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cash cows

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SBUs that generate large amounts of cash, far more than they can invest profitably in themselves - dominate shares of slow growth markets and provide cash to cover the organizations overhead and to invest in other SBUs

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stars

answer

SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth - when growth slows, likely to become cash cows

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question marks

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SBUs with a low share of high-growth markets, require large injections of cash just to maintain their market share, much less increase it - name implies managements dilemma for these SBU: choosing the right ones to invest in and phasing out the rest

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dogs

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SBUs with low shares of slow-growth markets, generate enough cash to sustain themselves, they do not hold the promise of ever becoming real winners for the organization - dropping may be required, except when relationships with other SBUs , competitive considerations or potential strategic alliances exist,

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diversification analysis

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technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

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market penetration

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a marketing strategy to increase sales of current products in current markets - most common strategy people think of - no change in either the basic product line or the markets served

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market development

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a marketing strategy to sell current products to new markets -

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product development

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a marketing strategy of selling new products to current markets - strategy is risky

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diversification

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a marketing strategy of developing new products and selling them in new markets - a potentially high risk strategy

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strategic marketing process

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an organization allocates its marketing mix resources to reach its target markets divided into three phases; planning, implementation, and evaluation

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Situational (SWOT) Analysis

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- step one in planning phase of the strategic marketing process 0 essence is taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it - acronym describing an organizations appraisal of its internal S strengths W weaknesses O opportunities T threats - based on an exhaustive study of four areas that form the foundation upon which the firm builds its marketing program - table by the combo of internal versus external factors (rows) and favorable verus unfavorable (columns) - ultimate goal is to identify the critical strategy related factors that impact the firm and then build on vital strengths, correct glaring weakness, exploit significant opportunities and avoid disaster-laden threats

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What are the four area's in SWOT exhaustive study of four areas that form the foundation upon which the firm builds its marketing program?

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- identify trends in the organization's industry - analyze the organization's competitors - assess the organization itself - research the organizations present and prospective customers

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Market- product focus and goal setting

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step 2 in the planning phase of the strategic marketing process - determining which products will be directed toward which customers is essential for developing an effective program - often based on market segmentation - goal setting involves specifying measurable marketing objectives to be achieved

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market segmentation

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- involves aggregating prospective buyers into groups or segments that have (1) common needs and (2) will respond similarly to a marketing action - enables an organization to identify the segments on which it will focus its efforts, its target market segments and develop specific marketing programs to reach them

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points of difference

answer

characteristics of a product that make it superior to competitive substitutes - unique characteristics of one of its products that make it superior to competitive products it faces in theh marketplace

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four components of the implementation phase of the strategic marketing process

answer

(1) obtaining resources (2) designing the marketing organization, (3) developing planning schedules, and (4)actually executing the marketing program designed in the planning phase

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marketing strategy

answer

the means by which a marketing goal is to be achieved - Define the target market (group wish to serve) - Develop a marketing mix to satisfy the chosen target (example on power point)

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marketing tactics

answer

detailed day-to-day operational decisions essential to the overall success of marketing strategies

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Marketing Management

answer

- process of planning, executing, and controlling marketing activities to attain marketing goals and objectives effectively and efficiently

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Alice in Wonderland example

answer

- Chester: If you have no idea where you wish to go, you will get there - Without goals you cant make decisions, but will end up somewhere

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Importance of business goals

answer

serve as reference point , Concentration of firm, motivation, and aids decision making

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Decision making

answer

good lead to good results, bad lead to bad results, and the rest are the exceptions. - goals help make decisions - Life is a set of. Black and White: easy to make Morfis gray area: don't know for sure - the reason mangers get paid

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Three levels of strategy

answer

Corporate, Business unit, and Functional - gain an advantage when able to adapt

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Plans/Planning

answer

- process is the most important thing because plans don't always go the way they are supposed to - have to have

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Reasons a Company should grow

answer

Survival (the bigger the better chance), Owner's mandate (believe being large is more money to be made) , and prestige/power

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The external environment

answer

Economic, Competitive, Technological, Regulatory, Social and Natural

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Strategy change

answer

- if environment changes once, has been established. - doesn't take a lot to change - have to change to improve - most attached to styles - will change if have big enough reason - something compels something to change -

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Primary driver of change

answer

increased competition and technology

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Social entrepreneurs

answer

seek to solve the practical needs of society and are usually structured as nonprofit organizations

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Chief Marketing Officer (CMO)

answer

new name for Vp's - important role in top management because of their ability to think strategically. - most bring multi-industry backgrounds, functional management expertise, analytical skills and intuitive marketing insights

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Marketing Department

answer

key role is to look outward, keeping the origination focused on creating value both for it and for customers - accomplished by listening to customers, developing and producing offerings and implementing marketing program acitivies

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Visionary Organization

answer

1. establish a foundation 2. set a direction using 3. strategies that enable it to develop and market its offerings successfully

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growth-share matrix

answer

BCG - four quadrants: cash cows, stars, question marks, and dogs

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Marketing program

answer

- step 3 in the planning phase of he strategic marketing process - involves developing the program's marketing mix and its budget - putting into effect requires the firm commit time and money to it in the form of a sales forecast and budget that must approved by top management - needs a marketing organization to implement it - ultimate purpose is to "fill up" planning gap -

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implementation- second phase of strategic marketing process

answer

- involves carryout out the marketing plan that emerges from the planning phase. -four components: obtaining resources, designing the marketing organization, developing planning schedules and actually executing the marketing program designed int he planning phase.

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Evaluating- phase of the strategic marketing process`

answer

seeks to keep the marketing program moving in he direction set for it. - accomplishing requires the marketing manager to 1. compare the results of the marketing program with the goals in the written plan to identify deviations and 2. act on these deviations correcting negative deviations and exploiting positive ones

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planning gap

answer

the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place (line BC)

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