Marketing – Ch. 2 (Company and Marketing Strategy: Partnering to Build Customer Relationships) – Flashcards
Unlock all answers in this set
Unlock answersquestion
Strategic planning
answer
is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. Strategic planning sets the stage for the rest of planning in the firm.
question
Mission Statement
answer
A statement of the organization's PURPOSE - what it wants to accomplish in the larger environment.
question
Business Portfolio
answer
the collection of business and products that make up the company. (Ex: ESPN, portfolio includes ESPN Radio, ESPN.com, ESPN The Magazine, and other business entities).
question
Portfolio Analysis
answer
a major activity in strategic planning whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones.
question
Strategic business units
answer
The key businesses that make up the company. (Can be a company division, product line within a division, or sometimes a single product or brand).
question
Growth- Share Matrix
answer
A portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share. (TOP LEFT - BOTTOM RIGHT: Star, Question mark, Cash cow, Dog)
question
Stars
answer
high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down and they will turn into cash cows.
question
Question mark
answer
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.
question
Cash cow
answer
low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.
question
Dog
answer
low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
question
Product/market expansion grid
answer
Looks at new products, existing products, new markets and existing markets for company growth opportunities. A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
question
Market penetration
answer
growth by increasing sales to current market segments without changing the product. (e.g. Starbucks adding more US stores)
question
Market development
answer
growth by identifying and developing new market segments for current products. (e.g. Starbucks encouraging seniors to visit stores for the first time; Starbucks expanding in non-U.S. markets)
question
Product development
answer
a growth strategy that offers new or modified products to existing market segments. (e.g. Starbucks introducing lighter roast coffee called Blonde)
question
Diversification
answer
a growth strategy through starting up or acquiring businesses outside the company's current products and markets (e.g. Starbucks recently acquired Evolution Fresh, a boutique provider of super-premium fresh-squeezed juices).
question
Downsizing
answer
prune, harvest or divest businesses that are unprofitable or that no longer fit the strategy.
question
Value Chain
answer
a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products. Each company department can be thought of as a link in the company's internal value chain.
question
Value delivery network
answer
is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system (Supply Chain).
question
Marketing Strategy
answer
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
question
Market Segmentation
answer
the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes.
question
Market Segment
answer
is a group of consumers who respond in a SIMILAR way to a given set of marketing efforts. (e.g. In the car market, consumers who want the biggest, most comfortable car regardless of price make up one market segment).
question
Market Targeting
answer
is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
question
Market Positioning
answer
is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer. Marketers want to develop unique market positions for their products. If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it.
question
Differentiation
answer
Actually differentiating the market offering to create superior customer value (e.g. offering greater customer value by either charging lower prices than competitors or offering more benefits to justify higher price).
question
Marketing Mix
answer
is the set of controllable tactical marketing tools - product, price, place, and promotion - that the firm BLENDS to produce the response it wants in the target market. Consists of everything the firm can do to influence the demand for its product.
question
Product
answer
the goods-and-services combination the company offers to the target market (Variety, quality, design, features, brand name, packaging, services).
question
Price
answer
the amount of money customers must pay to obtain the product (List price, discounts, allowances, payment period, credit terms).
question
Place
answer
includes company activities that make the product available to target consumers (Channels, coverage, locations, inventory, transportation, logistics).
question
Promotion
answer
activities that communicate the merits of the product and persuade target customers to buy it (Advertising, personal selling, sales promotion, public relations).
question
SWOT analysis
answer
an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).
question
Market implementation
answer
the process that turns marketing PLANS into marketing ACTIONS to accomplish strategic marketing objectives.
question
Marketing control
answer
evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained.
question
Return on marketing investment (ROI)
answer
the net return from a marketing investment divided by the costs of the marketing investment. Provides a measurement of the profits generated by investments in marketing activities.
