chapter 2 – strategic planning for competitive advantage – Flashcards
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strategic planning
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- managerial process o creating and maintaining a fit between the organizations objective and resources and the evolving market opportunities. - basis for all marketing strategies and decisions
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strategic business unit (SBU)
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-subgroup of a single business or collection of related businesses within the larger organization -must contain: a distinct mission and specific target market, control over resources, its own complicators, a single business, plans independent from other SBU's.
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competitive advantage and its goal:
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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 goal: to be sustainable
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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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diversification
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strategy of increasing sales by introducing new products into new markets (ex. Starbucks launches Hear Music and buys Ethos Water)
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environmental scanning
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analyzing aspects of the marketing environment in a process
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four P's
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product, place, promotion and price
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implementation
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process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
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market development
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marketing strategy that entails attracting new customers to existing products (ex. Starbuks opens stores in brazil and Chile)
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market opportunity analysis (MOA)
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describes and estimates the size and sales potential of market segments that are of interest to the firm
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mareket penetration
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marketing strategy that tries to increase market share among existing customers (ex. Starbucks sells more coffee to customers who register their reloadable Starbucks card)
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marketing mix (aka ________)
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the 4 P's (price, product, place, promotion)
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marketing myopia
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- defining a business in terms of goods and services rather than in terms of benefits customers seek - myopia: literally means too narrow
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marketing objective
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a statement of that is to be accomplished through marketing activities
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marketing plan
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written document that acts as a guidebook of marketing activities for the marketing manager
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marketing planning
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designing activities relating to marketing objectives and the changing marketing environment
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marketing strategy
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the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanged with target markets
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mission statement
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- establishes boundaries for all subsequent decisions, objectives and strategies - focuses on the market and organization is attempting to serve rather than on the good or service offered
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niche complétive advantage
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the competitive advantage when a firm seeks to target and effectively serve a small segment of the market
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product development
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marketing strategy that entails the creation of new products for present markets (ex. Starbucks develops powdered instant coffee called Via)
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product/service differentiation competitive advantage
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the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
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sustainable competitive advantage
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an advantage that can not be copied by the competitor
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SWOT analysis
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identify: internal strengths (S), weaknesses (W), examine external opportunities (O) and threats (T).
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criteria for stating good marketing objectives:
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- realistic, measurable, time specific, and compared to a benchmark. - consistent and indicate priorities of the organization - communicate marketing management philosophies, provide management direction, motivate employees, force executives to think clearly, and form a basis for control
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techniques that help make strategic planning effective:
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- on-going process - good strategic planning involves a high level of creativity - top managements support and participation
