MKT/ 574: Chapter 3: Elements of Marketing Strategy, planning, and Composition

A firm's core competencies that are superior to those of competitors are called _______.

distinctive competencies

Investing in new customers to generate usage of new products represents which type of strategy?

diversification

A ___________ __________ strategy means investing in new products that will increase usage from the current customer base.

product development

The value ________ of a company's products is the value message that includes the whole bundle of benefits the company promises to deliver, not just the benefits of the product itself.

proposition

Match the terms to their description

prospector: firm exhibits continual innovation by finding and exploiting new product and market opportunities analyzer: firm heavily relies on analysis and imitation of the successes of other organizations defender: firm searched for market stability and production of only a limited product line directed at a narrow market segment reactor: firm lacks any coherent strategic plan or apparent means of effectively competing.

product development strategies

recognize the opportunity to invest in new products that will increase usage from the current customer base

Match the BCG matrix to its strategy

Stars: important to building the future of the business and deserving any needed investment cash cows: key sources of internal cash generation for the firm dogs: potential high cash users and prime candidates for liquidation problem children or question marks: high cash needs that, if properly nurtured, can convert into stars.

strategic vision

a discussion of what the company would like to become in the future

strategic business unit

a relatively autonomous division or organizational unit of a large company that operate independently but within the corporate umbrella, exercising control over most of the factors affecting its long-term performance.

which of the following are tips for having a successful marketing planning experience?

1. stay flexible 2. stay strategic, but also stay on top of the tactical 3. don't underestimate the implementation part of the plan 4. utilize input, but don't become paralyzed by information and analysis 5. give yourself and your people room to fail and try again

Major categories for analysis within the external environment include:

1. political, legal, and ethical: all firms operate within certain rules, laws, and norms of operating behavior 2. sociocultural/demographic: trends among consumers and in society as a whole impact marketing planning greatly. 3. technological: constantly emerging and evolving technologies impact business in many ways. 4. economic: the economy plays a role in all marketing planning 5. natural: the natural environment frequently affects marketing planning.

final tips for having a successful marketing planning experience

1. stay flexible 2. utilize input, but don't become paralyzed by information and analysis 3. don't underestimate the implementation part of the plan 4. stay strategic, but also stay on top of the tactical 4. give yourself and your people room to fail and try again

4 strategic types

1. prospectors: firm exhibits continual innovation by finding an exploiting new product and market opportunities 2. analyzers: firm relies heavily on analysis and imitation of the successes of other organizations, especially prospectors 3. defenders: firm searches for market stability and production of only a limited product line directed at a narrow market segment, focusing on protecting established turf 4. reactors: firm lacks any coherent strategic plan or apparent means of effectively competing; reactors do well to merely survive in the competitive marketplace.

value chain

- created by Michael Porter - serves as a means for firms to identify ways to create, communicate, and deliver more customer value within a firm

Which of the following must be in place for effective marketing planning to occur?

1. everyone in an organization must understand and support the concept of customer orientation 2. All internal organizational processes and systems must be aligned around the customer.

The following needs to be in place for effecting marketing planning to occur:

1. everyone in an organization, regardless of his or her position title, must understand and support the concept of customer orientation, which places the customer at the core of all aspects of the enterprise. 2. to operationalize a customer-centric approach, all internal organizational processes and systems must be aligned around the customer 3. the CEO and others at the top of the organization must consistently set the tone for market-driven strategic planning through the customer-centric business philosophy.

internal environmental factors

1. firm structure and systems: to what degree does the present organizational structure facilitate or impede successful market-driven strategic planning? Are the firm;s systems set up and properly aligned to effectively serve customers? 2. firm culture: successful marketing planning requires a culture that includes customer orientation as a core value. If a firm's culture does not value and support a customer orientation and customer-centric approach to the overall business, marketing planning will likely disappoint. 3. firm leadership: the CEO must believe in and continuously support the structure, systems, and culture necessary for market-driven strategic planning. 4. firm resources: internal analysis involves taking an honest look at all aspects of a firm's functional/operational-level resources and capabilities and how they play into the ability to develop and execute market-driven strategies.

4 kinds of utility

1. form 2. time 3. place 4. ownership

2 key strategy phases

1. formulation 2. execution

Porter's three primary categories of competitive strategy

1. low cost 2. differentiation 3. focus

Which of the following ate the dimensions of the GS business screen approach to portfolio analysis?

1. market attractiveness 2. business position

Competitive environmental factors

1. threat of new entrants: how strong are entry barriers based on capital requirements or other factors? 2. rivalry among existing firms: how much direct competition is there? how much indirect competition? how strong are the firms in both categories? 3. threat of substitute products: substitutes appear to be different but actually can satisfy much or all of the same customer need as other product. 4. bargaining power of buyers: to what degree can customers affect prices of product offerings? 5. bargaining power of suppliers: suppliers impact the competitive nature of an industry through their ability to raise prices or affect the quality of inbound goods and services.

market development strategies

allow for expansion of the firm's product line into heretofore untapped markets, often internationally

mission statement

articulates an organization's purpose, or reason for existence - a well-conceived missions statement defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of a company's operations, products, and markets.

customer satisfaction

at its most fundamental level means how much the customer likes the product

According to Michael Porter, a firm's ______ strategy identifies three primary categories: low cost, differentiation, and focus (or niche).

competitive

strategy

comprehensive plan stating how the organization will achieve its mission and objectives.

The separate plans for a worst-case, best-case, and expected-case performance against the forecast are called:

contingency plans

Marketing _________ is the process of measuring marketing results and adjusting the marketing plan as needed.

control

______ competencies are the activities that the firm can do exceedingly well.

core

match the term to its description

cost leadership: the organization strives to have the lowest costs in its industry and produces goods or services for a broad customer base. Note the emphasis on costs, not prices. differentiation: the organization competes on the basis of providing unique goods or services with features that customers value, that they perceive as different, and for which they are willing to pay a premium. focus (or Niche): the organization pursues either a cost or differentiation advantage, but in a limited (narrow) customer group. A focus strategy concentrates on serving a specific market niche.

time, place, and ownership utilities

created by the market - when products are available to customers at a convenient location when they want to purchase them, and facilities of exchange are available that allow for transfer of the product ownership from seller to buyer.

form utility

created when the firm converts raw materials into finished products that are desired by the marker

Forecasts and the accompanying budgets that are impacted by the degree to which predicted financial conditions actually materialize describe which macro-level external environmental factor?

economic

The SBU plans for a corporation include ________ plans from operations, marketing, and finance.

functional-level

goals

general statements of what the firm wishes to accomplish in support of the mission and vision, eventually becoming refined into specific, measurable, and (hopefully) attainable objectives for the firm.

A firm's _____ strategy is its overall directional strategy at the business level.

generic

Which of the following is not an additional aspect of marketing planning after creating a situational analysis?

identify internal environmental factors

situation analysis

includes elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment.

market penetration strategies

involve investing in existing customers to gain additional usage of existing products

___________ analysis views SBU's and sometimes even product lines as a series of investments from which it expects maximization of returns.

portfolio

A _____ _______ strategy allows for expansion of the firm's product line into untapped markets, often internationally.

market development

investing in existing customers to generate additional usage of existing products represents a _______ strategy.

market penetration

The ongoing process of developing and implementing market-driven strategies for an organization is called _____

market planning

_________ strategic planning is the process at the corporate or SBU level of marshalling the various resources and functional areas of the firm toward a central purpose around the customer.

market-driven

The marketing planning process results in a(n) _________, a document that records the marketing planning process in a useful framework.

marketing plan

The fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of a company's operations, products, and markets is defined by its ______.

mission statement

The concept of environmentally-friendly marketing, or green marketing, is an example of which type of macro-level external environmental factor?

natural

Specific, measurable, and (hopefully) attainable aims that measure what the firm wishes to accomplish are called _______

objectives

market-driven strategic planning

often used to describe the process at the corporate or strategic business unit level of marshaling the various resource and functional areas of the firm toward a central purpose around the customer.

generic strategy

overall directional strategy at the business level

diversification strategies

seize on opportunities to serve new markets with new products

corporate-level strategic plan

serves as an umbrella plan for the overall direction of the corporation

The elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment are contained in a(n) ________.

situation analysis

The trends among consumers and in society as a whole that impact marketing planning describe which macro-level external environmental factors?

sociocultural/ demographic

benefit

some time of utility that a company and its products (and services) provide its customers.

At the firm level, a comprehensive plan stating how the organization will achieve its mission and objectives is called a(n):

strategy

internal analysis reveals ____ and ______, while external analysis points to potential opportunities and threats.

strengths, weaknesses

It its competencies cannot be easily duplicated or usurped by competitors, firms should invest in distinctive competencies, as they offer opportunity for ________ competitive advantage.

sustainable

Constantly emerging and evolving tools are equipment impacting business describe which macro-level external environmental factor?

technological

core competencies

the activities the firm can do exceedingly well

Porter's 9 value-creating activities

the five primary activities are: 1. inbound logistics: the the firm goes about sourcing raw materials for production 2. operations: how the first converts the raw materials into final products 3. outbound logistics: how the firm transports and distributes the final products to the marketplace 4. marketing and sales: how the firm communicates the value proposition to the marketplace 5. service: how the firm supports customer during and after the sale the four support activities in the value chain: 1. firm infrastructure: how the firm is set up for doing business; are the internal processes aligned and efficient? 2. human resource management: how the firms ensures it has the right people in place, trains them, and keeps them. 3. technology development: how the firm embraces technology usage for the benefit of customers. 4. procurement: how the firm deals with vendors and quality issues

market planning

the ongoing process of developing and implementing market-driven strategies for an organization

marketing control

the process of measuring marketing results and adjusting the marketing plan as needed

marketing plan

the resulting document that records the marketing planning process in a useful framework

_______ holds that every organization represents a synthesis of activities involved in designing, producing, marketing, delivering, and supporting its products.

the value chain

utility

the want-satisfying power of a good or service

match the term to its description

threats of new entrants: how strong are entry barriers based on capital requirements or other factors? rivalry among existing firms: how much direct competition is there? threat of substitute products: other products can satisfy many of the same customer needs as another product bargaining power of buyers: to what degree can customers affect prices or product offerings

true or false: Using information to drive marketing decisions is a key element of marketing planning.

true

According to Michael Porter, the value chain identified nine relevant ______-__________ activities the organization can engage in that create/impact both sides of the value equation: benefits and costs.

value-creating

value proposition

when a firm communicates the value message of a product, that may include the whole bundle of benefits that company promises to deliver, not just the benefits of the product itself.

distinct competencies

when the core competencies are superior to the competitors.