Chapter 2: Company and Marketing Strategy, Partnering to Build Customer Relationships – Flashcards
Unlock all answers in this set
Unlock answersquestion
Strategic Planning
answer
the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
question
three levels of marketing planning
answer
business unit, product, and market levels
question
Mission Statement (first step in planning)
answer
a statement of the organizations purpose- what it wants to accomplish in the larger environment
question
mission statements should be....
answer
market oriented and defined in terms of satisfying basic customer needs
question
Setting Company Objectives and Goals (second step)
answer
mission statement in detailed and supporting objectives for each level of management. Need to know requirements of reaching objectives.
question
Designing Business Portfolio (step three)
answer
The collection of businesses and products that make up the company
question
The best business portofilio is one that...
answer
best fits the company strengths and weaknesses to opportunities in the environment
question
2 steps of Business Portfolio Planning
answer
analyze its current business portfolio/determine which businesses should receive more less or no investment. and must shape the future portfolio by developing strategies for growth and downsizing.
question
Analyzing the current Business Portfolio (step 3 pt2)
answer
The process by which management evaluates the products and businesses that make up the company.
question
three steps of strategic planning (corporate level)
answer
defining the company mission, setting company objectives and goals, designing the business portfolio
question
2 steps of analyzing current business portfolio
answer
identify strategic business units (SBU's) ,assess the attractiveness of its various SBUs and decide how much support each deserves.
question
Strategic Business Units
answer
key businesses that make up the company. (can be a product line, company division, etc.)
question
Growth-share matrix
answer
a portfolio-planning method that evaluates a company's SBUs in terms of its market growth rate (attractiveness) and relative market share (strength)
question
Problems with Matrix Approach
answer
difficult, time consuming, costly to implement. also focuses on classifying current businesses but provide little advice for future planing
question
Todays strategic planning
answer
Decentralized. Companies are now placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close their markets.
question
Company growth must be to manage a.....
answer
Profitable Growth
question
Product-market expansion grid (4 categories)
answer
portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
question
Market Penetration (product-market grid)
answer
making more sales without changing its original product through marketing mix improvements.
question
Market Development (product-market grid)
answer
identifying and developing new markets for its current products.
question
Product Development (product-market grid)
answer
offering modified or new products to current markets
question
Diversification
answer
starting up or buying businesses beyond its current products and markets.
question
When a firm finds brands or businesses that are unprofitable it must carefully....
answer
prune, harvest, or digest them.
question
Marketing Strategy
answer
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
question
segmetation/targeting
answer
customers company decides to serve
question
differentiation/positioning
answer
how the company will serve their customers
question
marketing mix (4 p's buyers view)
answer
the set of tactical marketing tools- product, price, place, and promotion- that the firm blends to produce the response it wants in the target market.
question
Market Segmentation
answer
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
question
Market Segment
answer
A group of consumers who respond in a similar way to a given set of marketing efforts
question
Market Targeting
answer
Process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
question
Positioning
answer
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
question
in positioning its products the company first...
answer
identifies possible customer value differences that provide competitive advantages on which to build the position
question
Product
answer
goods and services combination the company offers to the target market
question
Price
answer
amount of money customers must pay to obtain the target
question
place
answer
company activities that make the product available to target consumers.
question
Promotion
answer
activities that communicate the merits of the product and persuade target customers to buy it.
question
Service Products
answer
banking, airline, retailing services.
question
4 p's consumers view (4 c's)
answer
Customer solution, customer cost, convenience, communication
question
four marketing management functions
answer
analysis, planning, implementation, control
question
marketing analysis (last)
answer
provides information and evaluations needed for all the other marketing activities.
question
SWOT Analysis
answer
Overall evaluation of the company's strengths, weaknesses, opportunities, and threats.
