Chapter 3: Strategic Marketing Plan – Flashcards
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business planning
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an ongoing process of making decisions that guides the firm both on the short term and in the long term
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business plan
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a plan that includes the decision 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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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 (planning down by top-level corporate management)
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strategic business units (SBUs)
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individual units within the firm that operate like separate business, 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 detained 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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steps to a strategic plan
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1: define the mission 2: evaluate the internal and external environment 3: set organizational or 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 customers, product, 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 a slow-growth market
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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 to market planning
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1: perform a situation analysis 2: set marketing objectives 3: develop marketing strategies 4: implement and control marketing plan
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product strategies
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include decisions such as product design, packaging, branding, support services
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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 target market
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distribution strategies
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outline how, when, and where the firm will make the product available to targeted customers
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control
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a 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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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. aka 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.
