Karen Hopkins Test 1 ch2

Businesses with high market share and growth are classifies as.....

Stars

value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

BCG Matrix

a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share

Product/market expansion grid (market growth strategies)

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

differentiating

actually differentiating the market offering to create superior customer value

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called

diversification

costumer value driven market strategy

includes elements like identifying your target market and reacting to there needs; it should also detail ways to retain costumers and use them to help you gain additional business.

Both market penetration strategies and market development strategies primarily involve ________.

selling a company's current products.

When a company divests a particular SBU it.....

sells off or phases it out

SBU

strategic business unit, a subgroup of a single business or collection of related businesses within the larger organization

Business Portfolio

the collection of businesses and products that make up the company

Market Targeting

the process of evaluating each market segment's attractiveness and selecting one or more segments to enter

Steps in business portfolio planning

- analyze the firm's current business portfolio - develop strategies for growth and downsizing to shape the future portfolio

Steps in Strategic Planning

1. Defining the company mission 2. Setting company objectives and goals 3. Designing the business portfolio 4. Planning marketing and other functional strategies

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs