Marketing Chapter 2

Market-oriented mission statement

defines the business in terms of satisfying basic customer needs. Should be clear, concise, and memorable. (he also said he doesn't like when they use the word "and")

Value delivery network

made up of the company, suppliers, distributors and ultimately customers who partner with each other to improve performance of the entire system.

What are the three steps of portfolio analysis?

1. Identify key businesses (strategic business units, or SBUs) that make up the company 2. Assess the attractiveness of its various SBUs 3. Decide how much support each SBU deserves

What are the four characteristics of a good mission statement?

1. Realistic 2. Based on distinctive competencies 3. Specific 4. Motivating

Market positioning

the arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of the target consumer.

business portfolio

the collection of businesses and products that make up the company.

Market segmentation

the division of a market into distinct groups of buyers who have different needs, characteristics or behaviour and who might require separate products or marketing mixes.

Controlling

the measurement and evaluation of results and the taking of corrective action as needed to ensure the objectives are achieved.

Strategic planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Market targeting

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

Implementing

the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives.

Downsizing

the reduction of the business porkolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy.

What are the 6 components included in strategic planning?

1. the mission 2. the strategic objectives 3. the strategic audit 4. SWOT analysis 5. portfolio analysis 6. objectives and strategies

What are the four stages of putting plans into action?

Analysis Planning Implementation Control

Strategic plan

A plan that describes how a firm will adapt to take advantage of opportunities in its constantly changing environment, thereby maintaining a strategic fit between the firm's goals and capabilities and its changing market opportunities.

Long-range plan

A plan that describes the principal factors and forces affecting the organisation during the next several years, including long-term objectives, the chief marketing strategies used to attain them and the resources required.

Annual plan

A short-term plan that describes the company's current situation, its objectives, the strategy, action programme and budgets for the year ahead, and controls.

The BCG growth-share matrix

Compares market share and market growth rate

The fourth and last stage of putting plans into action is control, what does control entail?

Control consists of measuring and evaluating the results of plans and activities, and taking corrective action to make sure objectives are being achieved. Analysis provides information and evaluations needed for all the other activities.

The third stage of putting plans into action is implementation, what does implementation entail?

Implementation turns strategic plans into actions that will achieve the company's objectives. People in the organisation who work with others, both inside and outside the company, implement marketing plans.

What actions does a BCG growth-share matrix suggest?

Invest in a star liquidate a dog select a portion of a question mark and divest the rest

The first stage of putting plans into action is analysis, what does analysis entail?

Planning begins with a complete analysis of the company's situation. The company must analyse its environment to find attractive opportunities and to avoid environmental threats. It must analyse company strengths and weaknesses, as well as current and possible marketing actions, to determine which opportunities it can best pursue. Analysis feeds information and other inputs to each of the other stages.

SWOT Analysis

Provides a summary of the strengths and weaknesses of the company together with the opportunities and threats it faces. Strengths WWeaknesses Opportunities Threats

The second stage of putting plans into action is planning, what does planning entail?

Through strategic planning, the company decides what it wants to do with each business unit. Marketing planning involves deciding marketing strategies that will help the company attain its overall strategic objectives. Marketing, product or brand plans are at the centre of this.

Market segment

a group of consumers who respond in a similar way to a given set of marketing efforts.

Market penetration

a growth strategy increasing sales to current market segments without changing the product.

Market development

a growth strategy that identifies and develops new market segments for current products.

Product development

a growth strategy that offers new or modified products to existing market segments.

Diversification

a growth strategy through starting up or acquiring businesses outside the company's current products and markets.

Portfolio analysis

a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.

Value chain

a series of departments that carry out value-creating activities to design, produce, market, deliver and support a firm's products.

Product/market expansion grid

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

APIC

analyzing planning implementation controlling