Marketing Chptr 2 – Flashcards

SWOT Analysis

Strengths and Weaknesses and its external Opportunities and Threats.

strategy

strategic marketing process

situation analysis

profit

Points of difference

Organizational culture

Objectives (goals)

mission

marketing tactics

marketing strategy

marketing plan

marketing metric

marketing dashboard

market share

market segmentation

goals (objectives)

diversification analysis

core values

business portfolio analysis

business

The evaluation phase of the strategic marketing process seeks to keep the marketing program moving in the direction that was established in the marketing plan. This requires the marketing manager to compare the results from the marketing program with the marketing plan's goals to (a) identify deviations or "planning gaps" & (b) take corrective actions to exploit positive deviations or correct negative ones.

The implementation phase of the strategic marketing process carries out the marketing plan that emerges from the planning phase. It has 4 key components: (a) obtaining resources; (b) designing the marketing organization to perform product management, marketing research, sales & advertising & promotion activities; (c) developing schedules to identify the tasks that need to be done, the time that is allocated to each one, the people responsible for each task, & and the deadlines for each—often with an action item list & Gantt chart; & (d) executing the marketing strategies, which are the means by which marketing goals are to be achieved, & their associated marketing tactics, which are the detailed day-to-day marketing actions for each element of the marketing mix that contribute to the overall success of a firm's marketing strategies. These are the marketing program actions a firm takes to achieve the goals set forth in its marketing plan.

An organization uses the strategic marketing process to allocate its marketing mix resources to reach its target markets. This process is divided into 3 phases: planning, implementation, & evaluation. The planning phase consists of (a) a situation (SWOT) analysis, which involves taking stock of where the firm or product has been recently, where it is now, & where it is headed & focuses on the organization's internal factors (strengths & weaknesses) & the external forces & trends affecting it (opportunities & threats); (b) a market-product focus through market segmentation (grouping g buyers into segments with common needs & similar responses to marketing programs) & goal setting, which in part requires creating points of difference (those characteristics of a product that make it superior to competitive substitutes); & (c) a marketing program that specifies the budget & actions (marketing strategies & tactics) for each marketing mix element.

Managers of an organization ask 2 key questions to set strategic direction. The 1st question, "Where are we now?" requires an organization to (s) reevaluate its competencies to ensure that its special capabilities still provide a competitive advantage; (b) assess its present & prospective customers to ensure they have a satisfying customer experience---the central goal of marketing today; & (c) analyze its current & potential competitors from a global perspective to determine whether it needs to redefine its business. The 2nd question, "Where do we want to go?," requires an organization to set a specific direction & allocate resources to move it in that direction. Business portfolio & diversification analyses help an organization do this. Managers use business portfolio analysis to assess the organization's strategic business units (SBUs), product lines, or individual products as though they were a collection of separate investments (cash cows, stars, question marks, & dogs) to determine the amount of cash each should receive. Diversification analysis is a tool that helps managers use one or a combination of 4 strategies to increase revenues: market penetration (selling more of an existing products to existing markets); market development (selling an existing product to new markets); product development (selling a new product to existing markets); product development (selling a new product to existing markets); & diversification (selling new products to new markets).

Marketing managers use marketing dashboards to visually display on a single computer screen the essential information required to make a decision to take an action or further analyze a problem. This information consists of key performance measures of a product category, such as sales or market share, & is known as a marketing metric, which is a measure of the quantitative value or trend of a marketing activity or result. Most organizations tie their marketing metrics to the quantitative objectives established in their marketing plan, which is a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

Organizations exist to accomplish something for someone. To give organizations direction & focus, they continuously assess their core values, mission, organizational culture, business, & goals. Today's organizations specify their foundation, set a direction, & formulate strategies—the "why," "what," & "how" factors, respectively. Core values are the organization's fundamental, passionate, & enduring principles that guide its conduct over time. The organization's mission is a statement of its function in society, often identifying its customers, markets, products, & technologies. Organizational culture is a set of values, ideas, attitudes, 7 norms of behavior that is learned & shared among the members of an organization. To answer the question, "what business are we in?" an organization defines its "business"—the clear, broad, underlying industry category or market sector of its offering. Finally, the organization's goals (or objectives) are statements of an accomplishment of a task to be achieved, often by a specific time.

An organization is a legal entity that consists of people who share a common mission. It develops offerings (goods, services, or ideas) that create value for both the organization & its customers by satisfying their needs & wants. Today's organizations are of 3 types: for-profit organizations, nonprofit organizations, & government agencies. A for-profit organization serves its customers to earn a profit so that it can survive. Profit is the money left after a for-profit organization subtracts its expenses from its total after a for-profit organization subtracts its expenses from its total revenues & is the reward for the risk it undertakes in marketing its offerings. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as organizational goal. Instead, its goals may be operational efficiency or client satisfaction. A government agency is a federal, state, county, or city unit that provides a specific service to its constituents. Most large for-profit & non-profit are divided into 3 levels of strategy: (a) the corporate level, where top management directs overall strategy of the entire organization; (b) the strategic business unit level, where managers set a more specific strategic direction for their businesses to exploit value-creating opportunities; & (c) the functional level, where groups of specialists actually create value for the organization.

an organization

for-profit organizations, nonprofit organizations, & government agencies.

A for-profit organization

Profit

a nonprofit organization

a government agency

(a) the corporate level, where top management directs overall strategy of the entire organization; (b) the strategic business unit level, where managers set a more specific strategic direction for their businesses to exploit value-creating opportunities; & (c) the functional level, where groups of specialists actually create value for the organization.

Organizations

1. continuously assess their core values, 2. mission, 3.organizational culture, 4. business, & 5. goals.

foundation, set a direction, & formulate strategies

core values

The organization's mission

Organizational culture

"business"—

the organization's goals (or objectives)

marketing dashboards

marketing metrics

"Where are we now?" "Where do we want to go?,"

"Where are we now?"

"Where do we want to go?,"

Business portfolio & diversification analyses

cash cows, stars, question marks, & dogs

strategic business units

Diversification analysis

1. market penetration (selling more of an existing products to existing markets); 2. market development (selling an existing product to new markets); product development (selling a new product to existing markets); 3. product development (selling a new product to existing markets); & 4. diversification (selling new products to new markets).

market penetration

market development

product development

diversification