Marketing Strategy Chapter 2

The mission statement should focus on....

The mission statement should focus on customers and the customer experience the company seeks to create.

What is the 2nd step in the strategic planning process?

The second step in the strategic planning process is setting the company objectives and goals.

Define value chain

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

Define Value Delivery Network

Value delivery network: the network composed of the company, suppliers, distributors and customers, who partner with each other to improve the performance of the entire system.

What labels are on the outside of the product/market expansion grid

Y axis = new markets, existing markets X axis = existing products, new products

What are the two axis labelled on the Boston matrix?

Y-axis: Market growth X-axis: Relative market share

You can use___________ for identifying company growth opportunities.

You can use product/market expansion grid for identifying company growth opportunities.

What are the two steps in analysing the current business portfolio?

1. Analysing the company portfolio and dividing it into SBU's 2. SBU attractiveness analysis

What are the four strategies for dealing with each SBU?

1. Build - invest more to build share. 2. Hold - invest just enough to hold share at current level. 3. Harvest - milking its short-term cash flow regardless of long-term consequences. 4. Divest: selling/phasing out.

What are the 2 main types of relationship management marketers should practice?

1. Customer-relationship management 2. Partner-relationship management

What is the contents of a marketing plan? (8)

1. Executive summary 2. Current market situation 3. Threats and opportunities 4. Objectives and issues 5. Marketing strategy 6. Action programmes 7. Budgets 8. Controls

What are the 3 types of plans a company should produce?

1. Long-range plans 2. Annual plans 3. Strategic plans

What are the four SBU types according to the boston matrix?

1.Star 2. Question Mark 3. Cash cow 4. Dog

What are the two steps in business portfolio planning?

2 steps is business portfolio planning: 1. Analyse current business portfolio and determine which businesses should receive more/less/no investment. 2. Company must shape its future portfolio by designing strategies for growth & downsizing

_____% companies report making good progress in measuring their marketing ROI.

22% companies report making good progress in measuring their marketing ROI.

____ % companies have implemented marketing ROI measures.

67% companies have implemented marketing ROI measures.

______% companies dissatisfied with their ability to measure marketing ROI.

93% companies dissatisfied with their ability to measure marketing ROI.

A clear mission statement acts as an...

A clear mission statement acts as an invisible hand that guides people in the organisation

Define business portfolio

Business portfolio: the collection of businesses and products that make up the company

Company-wide strategic planning guides....

Company-wide strategic planning guides marketing strategy and planning.

Competition no longer takes place between individual competitors but between _________________________________.

Competition no longer takes place between individual competitors but between the entire value delivery networks of these competitors.

Components of the business portfolio are called...

Components of the business portfolio are called strategic business units (SBUs)

Diversification = ____________ products & _____________ markets

Diversification = new products & new markets

Define downsizing

Downsizing: reducing the business portfolio by eliminating products or businesses that are not profitable or that no longer fit the company's overall strategy.

Define growth-share matrix

Growth-share matrix: a portfolio-planning method that evaluates a company's SBUs in terms of market growth and relative market share.

Why might a company want to downsize?

If a company grows too quickly/ enters markets where they lack experience, they may want to downsize.

What is meant by the implementation marketing management function?

Implementation: turning marketing strategies into marketing actions to accomplish strategic marketing objectives.

In response to financial pressures, marketers are developing better of measures of.....

In response to financial pressures, marketers are developing better measures of marketing ROI.

Market development = __________________ products & ______________ markets

Market development = existing products & new markets

Market penetration = ____________ products & ________________ markets

Market penetration = existing products & existing markets

Define marketing ROI

Marketing ROI: the net return from a marketing investment divided by the costs of the marketing investment.

Define marketing mix

Marketing mix: the set of tactical marketing tools - product, price, place, promotion - that the firm blends to produce the response it wants in the target market.

Marketing must partner effectively with other companies in the marketing system to form a competitively superior _________________________.

Marketing must partner effectively with other companies in the marketing system to form a competitively superior external value delivery network.

Marketing must work with all the business functions to create an effective ___________________ that serves _________.

Marketing must work with all the business functions to create an effective internal value chain that serves customers.

Marketing needs to identify, evaluate and select....

Marketing needs to identify, evaluate and select market growth opportunities.

In terms of internal communication, marketing should.... (3)

Marketing should: 1. Provide a guiding philosophy 2. Provide inputs to strategic planners by helping to identify attractive market opportunities and assessing the firm's potential to take advantage of them. 3. Design strategies for reaching each unit's objectives.

Define marketing strategy

Marketing strategy: the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

What is involved in the control marketing management function?

Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

Define mission statement

Mission statement: a statement of the organisation's purpose - what is wants to accomplish in the larger environment.

Mission statements should be ______________ orientated (rather than ____________ orientated)

Mission statements should be market orientated (rather than product orientated)

What should you create for the analysis marketing management function and why?

Perform a SWOT - provides inputs to each of the other marketing management functions.

Define portfolio analysis

Portfolio analysis: the process by which management evaluates the businesses and products that make up a company

What are the 7 problems with matrix approaches?

Problems with matrix approaches: 1. Overly centralised 2. Difficult 3. Time-consuming 4. Costly to implement 5. Difficult to define SBU's 6. Difficult to measure market share and growth 7. Focuses on classifying current businesses - provides little advice for future planning.

Product development = ____________ products & _________________ markets

Product development = new products & existing markets

Define product/market expansion grid

Product/Market expansion grid: a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification.

What does SBU stand for?

SBU = Strategic business unit

Define strategic planning

Strategic planning is the process of developing and maintaining a strategic fit between the organisations goals and capabilities and its changing marketing opportunities

Success of the value chain depends on....

Success of the value chain depends on how well each department performs its work of adding customer-value and the activity coordination of the functions.

What is the third step in strategic planning?

The 3rd step in strategic planning is designing the business portfolio

What is a weakness of the four P's? And what has been proposed to overcome these problems?

The 4 P's takes the view of the market, not the buyer - the 4 C's: 1. Customer solution 2. Customer cost 3. Convenience 4. Communication.

What are the four marketing management functions?

The 4 marketing management functions: analysis, planning, implementation, control

What is one way you can evaluate the attractiveness of SBU's?

The Boston consultancy group approach

The best business portfolio is one that best fits...

The best business portfolio is one that best fits the company's strengths and weaknesses to opportunities in the environment

The company must turn the mission statement into...

The company must turn the mission statement into detailed supporting objectives for each level of management

The company's objective must be to...

The company's objective must be to manage profitable growth.

What is the first step in strategic planning?

The first step of strategic planning is defining the company mission.

What are the four steps in strategic planning?

The four steps in strategic planning: 1. Defining the company mission 2. Setting the company objectives and goals 3. Designing the business portfolio 4. Planning marketing & other functional strategies