MKT 327 CHAPTER 2 – Flashcards
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Vision
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describes the fundamental contributions the business intends to make to society, its position relative to competitors, and the attributes that make the organization unique.
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Strategic Marketing Plan
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a document describing the company objectives and how to achieve them in light of competitive activities
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4 parts to a companys vision
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1. a set of core values 2. a business definition 3. strategic directions 4. strategic infrastructure
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1. Core Values
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describe the type of behavior expected from a company employees.
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2. Business Definition
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describes the fundamental contributions the organization provides to customers. -Marketing Myopia-(Ted Levitt) occurs when executives focus on their companys current products and services rather than on benefits to consumers -the railroads failure to focus on customers meant they also failed to make themselves more competitive
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3. Strategic Direction (intent)
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It is the desired leadership position of an organization and the measures used to chart progress towards this position. -often sets specific growth, profit, share or scope goals relative to the competition and market opportunities
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4. Strategic Infrastructure
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the corporate configuration that produces the company distinctive or core competencies and provides the resources necessary to satisfy customer wants -SBU (strategic business unit):may be a division within the company, a separate brand or product line, a distinct group of customers, or a unique technology -Core competencies:fundamental building blocks of competitive advantage.
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Core Competencies can be grouped into five categories
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1. base technologies 2. process technologies 3. product technologies 4. people systems 5. information systems
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Base Technologies
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refer to a broad innovation that a given organization is especially effective at harnessing or pioneered. -the best are adaptable and can be applied to several different products
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Process Technologies
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allow the firm to produce quality products in the most effective and flexible manner possible
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Product Technologies
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a company ability to create new goods and services is supported by product technologies.
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People Systems
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the procedures that provide the human connection between companies and consumers are called people systems
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Information Systems
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Robust enough to give an organization a competitive advantage. Important in global marketing because they provide vast amounts of date almost instantly
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Define Strategy
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a company long term plan of how to use resources for pursuing goals and objectives in competitive arenas. Strategic Window- when requirements of the market and competencies of the firm fit together to create a significant opportunity
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Low Cost Strategy
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Winning through efficiency, the objective is to be the low cost leader
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Differentiation Strategy
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Involves delivering customer value in a way that clearly distinguishes the product from its competitors.
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Customer Intimacy Strategy
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Delivering value through superior empathy for customers and solutions tailored to specific customer needs. (add value, mass customization, information, product bundling)
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Sustainable Competitive Advantage
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Refers to a strategy that competitors cannot easily duplicate or surpass
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5 steps to a strategic marketing plan
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Step 1: state the objectives and goals it expects to obtain Step 2: Situation Analysis, how the company will compete Step 3: Determine target markets which the organization will serve Step 4: Decide positioning relative to competitors Step 5: Develop plans for each aspect of the mix
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Step 1 : Objectives
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-Companies usually set objectives in terms of desired profit, market share or total sales. -Profit is the most common
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Step 2: Situation Analysis
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-SWOT analysis : Strengths, weaknesses, opportunities, and threats. Strengths: describe the unique resources or circumstances that can be used to take advantage of opportunities Weakness: aspects of the org. or product that need improvement Opportunities: indicate advancements that can be made in new or existing markets Threats: competition, new tech., could impede the companies development Companies are constrained by their weaknesses and are vulnerable to threats
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Step 3: Target Marketing
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Process of selecting which market the firm will emphasize its attempts to satisfy the customers better than the competitors
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Step 4: Positioning
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creating a perception in the minds of the consumers about the company and its products Value proposition: the compelling reason customers should select the brand
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The marketing control process
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provides feedback on how well the strategy is working. 1. review objectives 2. Measure performance 3. Evaluate performance 4. Adjust objectives/tactics 5. Take Action
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Geographic Scope
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-the extent of a companies international activities 1. International 2. Regional 3. Multinational 4. Global
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1. International Scope
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-when a company conducts business in one or a very few foreign countries
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2. Regional Scope
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- a company with operations in several adjacent countries -generally competing in only one area of the world -tend to be more efficient because the markets are close together
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3. Multinational Scope
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when companies operate in several countries around the world , unrestricted by region.
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4. Global Scope
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operations in nearly all countries around the world -mental image of hovering like a satellite over the earth -similar segments of buyers within the various regions can be targeted with a universal image -consumers around the world are growing more alike
