Marketing Chpt 2 – Flashcards
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What is the organization's main activity at a particular time? How will it reach its goals?
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Strategic marketing management addresses two questions....
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strategic business unit (SBU)
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a subgroup of a single business or collection of related businesses within the larger organization
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-a distinct mission and specific target market -control over its resources -its own competitors -a single business or a collection of related businesses -plans independent of the other SBUS in the total organization
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when properly created, an SBU has the following characteristics:
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Ansoff's strategic opportunity matrix, the Boston Consulting Group model, and the General Electric Model
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The three most commonly used tools to manage the strategic direction of its portfolio of businesses are:
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market penetration
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try to increase the market share among existing customers
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market development
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attracting new customers to existing products
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product development
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the creation of new products for present markets
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diversification
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a strategy of increasing sales by introducing new products into new markets
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core innovation
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these decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands
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adjacent innovation
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these decisions are designed to take company strengths into new markets - use existing abilities in new ways
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transformational innovation
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these decisions result in brand new markets, products, and often new businesses - the company must rely on new unfamiliar assets to develop the type of breakthrough decisions that fall in this category
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portfolio matrix
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classifies each SBU by its present or forecast growth and market share
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relative market share
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the ratio between the company's share and the share of the largest competitor
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star
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fast growing market leader
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cash cow
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an SBU that generates more cash than it needs to maintain its market share
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problem child/question mark
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shows rapid growth but poor profits margins
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dog
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low growth potential and a small market share
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building
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if an organization has an SBU that it believes has the potential to be a star, ___ would be an appropriate goal
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hold
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if an SBu is a very successful cash cow, a key goal would be to ___ the market share so that the organization can take advantage of the very positive cash flow
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harvest
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this strategy is appropriate for all SBUs except those classified as stars - increase short-term cash return w/o too much concern for the long run impact
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divest
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getting rid of SBUs with low shares of low-growth markets is often appropriate
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business position
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this horizontal axis refer to how well positioned the organization is to take advantage of market opportunities
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attractiveness
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the vertical axis measures the ___ of a market
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planning
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the process of anticipating future events and determining strategies to achieve organizational objectives in the future
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marketing planning
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involves designing activities relating to market objectives and the changing marketing environment
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marketing plan
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a written document that acts as a guidebook of marketing activities for the marketing manager
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defining the business mission performing a situation analysis defining objectives delineating a target market establishing components of the marketing mix
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elements of a marketing plan:
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mission statement
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the foundation of any marketing plan is the firm's ___, which answers the question of "What business are we in?"
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T
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T or F: a mission statement should focus on the market or markets the organization is attempting to serve rather than on the good or service offered
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marketing myopia
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defining a business in terms of goods and services rather than in terms of the benefits customers seek
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Strengths Weaknesses Opportunities Threats
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SWOT analysis stands for:
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environmental scanning
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the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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competitive advantage
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a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
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cost competitive advantage
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being the low cost competitor in an industry while maintaining satisfactory profit margins
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experience curves efficient labor no frills goods and services government subsidies product design reengineering production innovations new methods of service delivery
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cost can be reduced in these ways:
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product/service differentiation competitive advantage
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exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
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niche competitive advantage
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seeks to target and effectively serve a single segment of the market
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sustainable competitive advantage
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an advantage that cannot be copied by the competition
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marketing objective
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a statement of what is to be accomplished through marketing activities
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marketing strategy
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involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges within target markets
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market opportunity analysis
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the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
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marketing mix
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a unique blend of product, place, promotion, and pricing strategies
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implementation
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the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
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evaluation
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entails gauging the extent to which marketing objectives have been achieved during the specified time period
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control
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provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
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marketing audit
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a thorough, systematic, period evaluation of the objectives, strategies, structure and performance of the marketing organization
