MKT 301: Chapter 2 " Strategic planning for a successful future" – Flashcards
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Strategic Planning
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The process of thoughtfully defining a firms objectives and developing a method for achieving those objectives -can increase success
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Marketing Plan
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An action-oriented document or playbook that guides the analysis, implementation and control of the firms marketing strategy
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Key components of a Marketing Plan
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Executive summary Situation analysis Marketing strategy Financials Controls -These components communicate what organization desires to accomplish & how plans to achieve goals
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Mission Statement
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A concise affirmation of the firms long-term purpose -First step in marketing plan
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3 Primary Characteristic of Good Mission Statement
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1. Statement should focus on a limited number of goals 2. Should be customer oriented & focused on satisfying basic customer needs/ wants. 3. Capture a shared purpose and provide motivation for employees of firm.
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Situation Analysis
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Systematic collection of data to identify the trends, conditions, and competitive forces that have the potential to influence the performance of the firm and the choice of appropriate strategies -Foundation of marketing plan
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3 Sections of Situation Analysis
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1. market summary 2. SWOT 3. Competition
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Market Summary
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Description of the current state of the market -Sets the stage for situation analysis section
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SWOT
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Evaluation of a firm strengths, weaknesses, opportunities, and threats
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Market
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Group of consumers or organizations that is interested in and able to buy a particular product
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Strenghts
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Internal capabilities that help the company achieve its objectives
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Weaknesses
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Internal limitations that may prevent or disrupt the firms ability to meet stated onjectives
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Opportunities
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External factors that the firm may be able to capitalize on to meet or exceed its stated objectives
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Threats
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Current and potential external factors that may challenge the firms short and long term performance
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Strategy
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Set of actions taken to accomplish organizational objectives
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Competition
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Effort of 2 or more parties acting independently to secure the business of a third party by offering the most favorable terms
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Direct Competitors
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Situation in which products that perform the same function compete against one another
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Indirect Competitors
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Process in which products provide alternative solutions to the same market
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3 Basic Characteristics of Quality Marketing Objectives
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1. Specific 2. Measurable 3. Realistic
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Target Market
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Group of customers toward which an organization has decided to direct its marketing efforts
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Multinational Company
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Firm that operates in 2 or more countries
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Positioning
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Activities a firm undertakes to create a certain perception of its product in the eyes of the target market
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Market Penetration
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Marketing strategy that emphasizes selling more of existing goods and services to existing customers
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Product Development
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Marketing strategy that involves creating new goods and services for existing customers
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Market Development
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Marketing strategy that focuses on selling existing goods and services to new customers
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Diversification
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Marketing strategy that seeks to attract new customers by offering new products that are unrelated to the existing products produced by the organization
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Competitive Advantage
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Superior position of a product enjoys over competing products if consumers believe it has more value than other products in it category
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Financial Projections
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Bottom line estimate of the organizations profitability Items included in this are: -sales forecast -expense forecast -break-even analysis
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One of the most critical strategic decisions to be included in marketing plan involves _______?
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Choosing how to enter foreign markets
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Exporting
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Selling domestically produced products to foreign markets (least risky)
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Licensing
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Legal process in which one firm pays to use or distribute another firms resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge
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Joint Venture
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Arrangement in which a domestic firms partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign companies market
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Direct Ownership
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Method of entering an international market in which a domestic firm actively manages a foreign company or overseas facilities (most risky)
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Executive Summary
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Serves as the elevator pitch for the marketing plan. Provides 1-2 page synopsis of the marketing plans main points
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Franchising
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Contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing and operational support (attractive method of entering a foreign market)
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All nonprofit orgs must?
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-Think strategically about marketing plan to ensure success -Use effective marketing strategies to compete for donor support
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Distribution
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The _______ section of the marketing plan should outline all the different companies, people, and technologies that will be involved in the process of delivering the product to customers
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Marketing Strategy
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The _______ _______ component of the marketing plan lists the actions a firm must take to accomplish the marketing objectives it established in its mission statement
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Common marketing objective for a nonprofit organization?
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-Soliciting volunteers -Raising funds
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Star
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Large market share with high growth industry
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Cashcow
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Large market share with low growth industry
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Question Marks
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Small market share with high growth
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Dogs
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Small market share with low growth
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Things that cause a firm to adjust their strategy
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-Competitive threats -Changing customer needs
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Indirect
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Most companies fail to consider their _______ competitors when creating the competition section of the market summary
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Analyzing market growth strategies
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-markets -products
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Financials
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Readers of a marketing plan can see the detailed estimate of an organizations profitability in the _________ section
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Employees
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Mission statement is to provide _______ with a shared sense of ambition, direction, opportunity
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What tools are used when focusing on the promotion aspect?
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-advertising -sales promotion -personal selling -public relations
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How many steps are in a marketing plan?
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5
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Sales Forecast
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Many departments rely on a ____ _____ which projects how many units of a product the company expects to sell during a specific time period
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Expense Forecast
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An estimate of the costs the company will incur to create, communicate, and deliver the product an expense forecast, marketers will have a very difficult time allocating resources and predicting when the product will become profitable
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Break-Even Analysis
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Combines the data provided in the sales and expense forecasts to estimate how much the company need to sell to cover expenses
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Flexibility and Self Motivation
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Help someone be successful in nonprofit organization
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Risks associated with licensing in international market?
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-Licensee could potentially misuse trademark -Licensor may create its own competition
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Things to include in the controls section of marketing plan
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-Implementation -Organization Structure -Contingency Planning
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BCG: Boston Consulting Group
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Used in developing marketing summary 2 elements -market growth -market share
