Marketing Chapter 2
Value delivery network
The network made up of the company, its suppliers, distributors, and customers who partner with each other to improve the performance of the entire system
Strategic planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities - Sets the planning for the rest of the firm
Market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter - A company should target segments in which it can profitably generate the greatest customer value and sustain it - Most companies enter a new market by serving a single segment and then add more segments if successful
Marketing implementation
The process that turns marketing strategies and plans into marketing actions to accomplish strategic marketing objectives - Addresses the who, where, when and how - Easier to think of good marketing strategies than to implement them
Value chain
The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm's products - Success of a firm depends on how well each department performs but how well the departments coordinate their activities - A company's value chain is only as strong as its weakest link - Should try to get all the departments to "think consumer"
Product/market expansion grid
Useful for identifying growth opportunities - Illustrates different growth strategies - Has two dimensions: Opportunities for growth in existing or new markets Allocating resources into existing products or new products - Market penetration - Market development - Product development - Diversification
Geographic organization
A company that sells across the country or internationally often uses this
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Mission statement
A statement of the organization's purpose, what it wants to accomplish in the larger in environment - A clear one acts as an "invisible hand" that guides people in the organization - Should be market oriented and defined in terms of satisfying basic customer needs - Should be meaningful, specific and motivating - Emphasize company strengths and how it intends to win the marketplace - Should focus on customers and the customer experience the company seeks to create
Differentiation
Actually differentiating the market offering to create superior customer value
SWOT analysis
An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T)
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers - Where do you want your product to sit within the minds of consumers
Market development
Company growth by identifying and developing new market segments for current company products
Market penetration
Company growth by increasing sales of current products to current market segmentsmM without changing the product
Product development
Company growth by offering modified or new products to current markets
Diversification
Company growth through starting up or acquiring businessess outside the company's current products or markets
Functional organization
Different marketing activities are headed by functional specialists
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 - Every market has segments
Place
Includes the company activities that make the product available to target consumers
Operational control
Involves checking ongoing performance against the annual plan and taking corrective action when necessary - purpose is to ensure company achieves sales, profits and other goals
Marketing planning
Involves choosing marketing strategies that will help the company attain its overall strategic objectives
Strategic control
Involves looking at whether the company's basic strategies are well matched to its opportunities
Strategic business units
Key businesses that make up the company - Can be a company division, a product line, or a single product or brand - A company should assess the attractiveness of these and decide how much support each deserves.
Marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are acheived
Marketing mix
One of the major concepts in modern marketing - The set of tactical marketing tools, product, price, place, promotion that the firm blends to produce the response it wants in the target market - Consists of everything the firm can do to influences the demand for its products
The marketing concept
Suggests the company strategy should revolve around creating customer value and building profitable relationships with important consumer groups
Promotion
The activities that communicate the merits of the product and persuade target customer to buy it
Price
The amount of money customers must pay to obtain the product
Business portfolio
The collection of businesses and products that make up the company
Product
The goods and services combination the company offers to the target market
Marketing strategy
The marketing logic by which the company hopes to create this customer value and achieve these profitable customer relationships