Marketing Chapter 2

Marketing objective should possess certain characteristics

1) A marketing objective should be expressed in clear simple terms so all marketing and non-marketing personnel in the company understand exactly what they were trying to achieve 2) and objective should be measurable which allows the organization to track progress and compare outcomes against beginning benchmarks 3) A marketing objective should specify a time frame for its accomplishment 4) A marketing objective should be consistent with both business unit and corporate strategies

Establishing an implementation timetable involves several steps

1) identifying the activities to be performed 2) determining the time required to complete each activity 3) separating the activities to be performed in sequence from those to be performed simultaneously 4) organizing the activities in the proper order 5) assigning responsibility for completing each activity to one or more employees, teams, or managers

Strategic business unit

A division product line or other profit center within the parent company

Mission statement

A long-term view or vision of what the organization wants to become

Swot analysis

Assesses an organization strengths weaknesses opportunities and threats

Threats

Barriers that could prevent the company from reaching its objectives, must be acted upon to prevent them from limiting organizations capabilities

Marketing cost analysis

Breaks down and classifies cost to determine which are associated with specific marketing efforts

Weaknesses

Limitations a company faces in developing or implementing a marketing strategy

Corporate identity

Their unique symbols personalities and philosophies

Core competencies

Things a company does extremely well which sometimes gives it an advantage over the competition

Centralized organization

Top level managers delegate little authority to lower levels

Sales analysis

Uses sales figures to evaluate a firms current performance

Competitive advantage

When a company matches a core competency to opportunities in the market place

Market opportunity

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market

A mission answers two questions

Who are our customers? What is our core competency?

Market growth/market share matrix

A helpful business tool, based on the philosophy that a product market growth rate and its market share are important considerations in determining its marketing strategy

Marketing strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

Sustainable competitive advantage

One that the competition cannot copy in the foreseeable future

Stars

Products with a dominant share of the market and good prospects for growth. Use more cash than they generate to finance growth, add capacity, and increase market share

Efficiency

Refers to minimizing the resources an organization uses to achieve a specific level of desired customer relationships

Marketing implementation

The process of putting marketing strategies into action

Market

A group of individuals and or organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products

Marketing plan

A written document that specifies the activities to be performed to implement and control the organizations marketing strategies

Late mover advantage

Ability of later market entrance to achieve long-term competitive advantages for not being the first to offer a certain product in the marketplace

Performance standard

An expected level of performance against which actual performance can be compared

Strengths

Competitive advantages core competencies that give the company an advantage

Strategic performance evaluation

Consist of establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy if needed

Decentralized organization

Decision making authority is delegated as far down the chain of command as possible

Corporate strategy

Determines the means for utilizing resources in the functional areas of marketing production finance research and development and human resources to achieve the organizations goals

Opportunities

Favorable conditions in the environment that could produce rewards for the organization if acted upon, exist but must be exploited

Cash Cows

Have a dominant share of the market, but low prospects for growth. Generate more cash than is required to maintain market share

question marks or problem children

Have a small share of a growing market and generally require a large amount of cash to build market share

Dogs

Have a subordinate share of the market and low prospects for growth. Often found in established markets

Company products into four basic types

Stars, cash cows, dogs, and question marks

Marketing objective

States what is to be accomplished through marketing activities

Strategic windows

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

First mover advantage

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

Effectiveness

The degree to which long-term customer relationships help achieve an organizations objectives

Market share

The percentage of a market that actually buys a specific product from a particular company

Strategic planning

The process of establishing an organizational mission and formulating goals corporate strategy marketing objectives and marketing strategy

Strategic marketing management

The process of planning implementing and evaluating the performance of marketing activities and strategies both effectively and efficiently