chapter 2 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 for 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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business ethics
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rules of conduct for an organization
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Code of ethics
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written standard of behavior to which everyone in the organization must subscribe (part of the planning process) It reduces confusion about what the firm consider ethical behavior AND also sets standards for how the organization will act with stakeholders
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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
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Individual units within the firm that operate like separate businesses, which each having its own mission, business objectives, resources, managers, and competitors
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functional planning (marketing 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 concentrates on developing detailed plans from day-to-day activities that carry out an organization's functional plans.
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Strategic planning 5 steps
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1) define the mission 2) evaluation the internal and external environment 3) set organizational and SBU objectives 4) establish the business portfolio 5) develop growth strategies
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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 customer, products, and resources
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situation analysis
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an assessment of a firm's internal and external environment
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internal environment
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the controllable elements inside an organization, including its people, its facilities, its patents that it holds, and how it does things that influence 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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A strategic planning tool that helps management evaluate an organization in terms of internal strengths and weakness, and external opportunities and threats
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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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SBU with products that have a dominant market share in high-growth rate markets: top left quadrant of BCG matrix
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cash cows
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SBUs with high market shares in low-growth industries; bottom left quadrant of BCG Matrix
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question marks
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Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.
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dogs
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SBU with a small share of a slow growth market. They are businesses that offer specialized products in limited markets that are not likely to grow
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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 strategy
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A growth strategy that introduces existing products to new markets (existing products, new market)
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product development strategies
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growth strategies that focus on selling new products in existing marketing (new products, existing markets)
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diversification strategies
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growth strategies that emphasize both new products and new markets (new products, new markets)
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Marketing (functional) planning (4 steps)
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1) perform situation analysis 2) set marketing objectives 3) develop marketing strategies 4) implement and control the marketing plan
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Control
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a formal process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
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marketing metrics
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concrete measures of various aspects of marketing performance
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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
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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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elements of the action plan
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1) assign responsibility 2) create a time line 3) set a budget 4) decide on measurements and controls
