MKT 300 Chapter 2

The Strategic Planning Process

1. Establish organizational mission statements and goals 2. Develop corporate and business-unit strategies 3. Assess organizational resources and opportunities 4. Develop marketing objectives and marketing strategies

Steps of an Implementation Timetable

1. Organizing the marketing unit (centralized and decentralized organizations) 2. Motivating marketing personnel 3. Communicating within the marketing unit 4. Coordinating marketing activities 5. Establishing a timetable for implementation

Mission Statement (page 34)

A long-term view, or vision, of what the organization wants to become. It answers the questions of who their customers are and what their core competency is.

SWOT Analysis

An assessment of an organization's strengths, weaknesses, opportunities, and threats. It is depicted as a four-cell matrix and shows how marketers must seek to convert weaknesses into strengths, threats into opportunities, and match internal strengths with external opportunities to develop competitive advantages.

Cash Cows

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

Dogs

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

Stars

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

Question Marks

Sometimes called "problem children," have a small share of a growing market and generally require a large amount of cash to build market share.

Strategic Business Unit (SBU) (page 34)

a division, product line, or other profit center within the parent company

Market

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

Market Growth/ Market Share Matrix (Boston Consulting Group Matrix)

a helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy Figure 2.3 on page 36 enables a strategic planner to classify a company's products into four basic types: stars, cash cows, dogs, and question marks.

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

Marketing Objectives

a statement of what is to be accomplished through marketing activities

Corporate Strategy (page 34)

a strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals

Marketing Plan

a written document that specifies the activities to be performed to implement and control the organization's marketing strategies

Sustainable Competitive Advantage

an advantage that the competition cannot copy

Performance Standard

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

First-Mover Advantage

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

Late-Mover Advantage

the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Market Share

the percentage of 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

Marketing Implementation

the process of putting marketing strategies into action

Competitive Advantage

the result of a company matching a core competency to opportunities it has discovered in the marketplace

Core Competencies

things a company does extremely well, which sometimes give it an advantage over its competition