Chapter 11 – Portfolio Analysis & Strategic Market Planning – Flashcards

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What are the 3 analysis steps in the strategic market planning process?
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1. Business performance 2. Market attractiveness 3. Competitive advantage
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Business performance
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Analysis includes... - Share position - Sales growth - Profit performance
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Market attractiveness
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Analysis includes... - Market forces - Market access - Competitive intensity
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Competitive advantage
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Analysis includes... - Differentiation advantage - Cost advantage
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Market forces
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Market size, growth rate, buyer power
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Market access
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Number of competitors, price rivalry, ease of entry
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Competitive intensity
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Customer familiarity, channel access, sales requirements
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Differentiation advantage
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Product quality, service quality, brand image
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Cost advantage
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Unit cost, transaction cost, marketing expenses
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What are the 4 possibilities in the BCG Matrix?
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Cash cows, Dogs, Stars, Question marks
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Cash cows
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Low market growth rate, High market share
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Dogs
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Low market growth rate, Low market share
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Stars
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High market growth rate, High market share
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Question marks
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High market growth rate, Low market share
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What are the 3 uses for the planning portfolio?
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Balance the portfolio Framework for strategic market planning Match objectives to portfolio position
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What are Offensive strategies?
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Invest to grow Improve position New market entry
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What are Defensive strategies?
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Protect position Optimize position Monetize Harvest / Divest
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Invest to grow
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Invest marketing resources to grow the market or market share
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Improve position
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Invest to improve and strengthen competitive position
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New market entry
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Invest to enter a new attractive market or develop new product line
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Protect position
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Invest to protect market share
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Optimize position
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Optimize price-volume and marketing resources to maximize profits
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Monetize
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Manage market position for maximum cash flow w/ limited marketing resources
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Harvest / Divest
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Maximize short-run cash flow or minimize losses
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