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