CH 3: Strategic Market Planning – Flashcards
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business planning
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an ongoing process of making decisions that guides the firm both in the short term and in the long term
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business plan
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a plan that includes the decisions that guide the entire organization
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marketing plan
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a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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three levels of business planning
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1. strategic planning 2. functional planning 3. operational planning
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strategic planning
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a managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival
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strategic business units (SBUs)
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individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
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functional planning
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a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic plan
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operational planning
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a decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization's functional plans
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strategic planning process
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1. define the mission (mission statement) 2. evaluate the internal and external environment (SWOT Analysis) 3. set organizational or SBU objectives (must be specific, measurable, attainable, and sustainable) 4. establish the business portfolio (BCG growth-market share matrix) 5. develop growth strategies (product-market growth matrix)
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mission statement
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a formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
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situation analysis
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an assessment of a firm's internal and external environments
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internal environment
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the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
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external environment
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the uncontrollable elements outside an organization that may affect its performance either positively or negatively
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SWOT analysis
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an analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment
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business portfolio
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the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
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portfolio analysis
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a management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units
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BCG growth-market share matrix
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a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
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stars
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SBUs with products that have a dominant market share in high-growth markets
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cash cows
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SBUs with a dominant market share in a low-growth-potential market
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question marks
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SBUs with low market shares in fast-growth markets
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dogs
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SBUs with a small share of slow-growth market; they are businesses that offer specialized products in limited markets that are not likely to grow quickly
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four fundamental marketing strategies [product-market growth matrix; step 5]
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1. market penetration strategies 2. market development strategies 3. product development strategies 4. diversification strategies
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market penetration strategies
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growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
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market development strategies
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growth strategies that introduce existing products to new markets
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product development strategies
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growth strategies that focus on selling new products in existing markets
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diversification strategies
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growth strategies that emphasize both new products and new markets
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steps in market planning
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1. perform a situation analysis (SWOT) 2. set marketing objectives 3. develop marketing strategies (strategies for each of the four P's) 4. implement and control the marketing plan (control)
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product strategies
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include decisions such as product design, packaging, branding, support services, if there will be variations of the product, and what product features will provide the unique benefits targeted customers want
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pricing strategy
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determines how much a firm charges for a product
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promotional strategy
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how marketers communicate a product's value proposition to the targeted market
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distribution strategy
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outline how, when, and where the firm will make the product available to targeted customers (the place component)
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control
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a process that entails 1. measuring actual performance, 2. comparing this performance to the established marketing objectives, and 3. making adjustments to the strategies or objectives on the basis of this analysis
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overall implementation and control
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- assign responsibility - create a time line - set a budget - decide on measurements and controls
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return on marketing investment (ROMI)
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quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise
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action plans / marketing programs
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individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan; action plans are sometimes referred to as "marketing programs"
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operational plans
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plans that focus on the day-to-day execution of the marketing plan; operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines to accomplish the tasks
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second
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In the operational planning process, using marketing metrics to monitor how the plan is working is the __________ step.
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Decisions are made about how to best allocate resources across a company's strategic business units (SBUs) to ensure growth for the entire company.
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What happens during the establish the business portfolio step of strategic planning?
