EXAM 1 - Strategic Marketing Planning

Operational Planning

Operational planning is a decision process that focuses on developing detailed plans for day-to- day activities that carry out an organization's tactical plans.

Brand Competition

Brand competition is competition for similar goods or services. They have to make a distinction somehow.

Product Competition

Competitors offering different products to attempt to satisfy the same consumer's needs and wants.

Perfect (Pure) Competition

A market structure in which a large number of firms all produce the same product. Entry is easy.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical. Entry is possible.

What is a Mission Statement? What role does it play in the planning process?

A mission statement is a formal document outlining the organization's overall purpose and what it hopes to achieve with its customers, products, and resources. It defines the SCOPE of the firm's activities and identifies its strategic FOCUS. When the mission statement is constructed correctly it not only spells out the organization's scope and focus, but it sets the DIRECTION for everyone's efforts.

Explain the steps in the marketing planning process.

ANALYSIS: SWOT OBJECTIVES: What to achieve. STRATEGIES: How to achieve it. IMPLEMENT: Do it. MONITOR & CONTROL: How's it doin? Perform a Situation Analysis: SWOT analysis by searching out information about the environment that specifically affects the marketing plan. Set Marketing Objectives: Brands, sizes, product features, and other marketing-mix related elements. State what the marketing function must accomplish if the firm is to achieve its overall objectives. Develop Marketing Strategies: What activities they must accomplish to achieve the marketing objectives (target mkt, mkt mix, brand image) Implement Marketing Strategies: Marketing managers now spend time managing the various elements of the marketing plan. Monitor and Control: Compare actual performance with the objectives, and adjust accordingly.

How do firms use the Boston Consulting Group model for portfolio analysis in planning for their SBUs?

BCG Matrix: Q1: Stars - hi growth, hi share Q2: ?mrk - hi growth, lo share Q3: $cow - lo growth, hi share Q4: Dog - lo growth, lo share Stars: are business units with products that have a dominant market share in high-growth markets. INVEST. Cash Cows: have a dominant market share in a low-growth potential market. HOLD. Question Marks: (sometimes called problem children) are products with low market shares in fast-growing markets. RISKY. Dogs: are products that nobody wants. They have a small share of a slow-growth market. DIVEST.

Oligopoly

Few sellers w/ high control over market with many buyers. Entry is difficult.

Business growth strategy: Market Penetration

EXISTING PRODUCT > EXISTING MKT These strategies seek to increase sales of existing products to current customers, nonusers, and users of competing brands.

Business growth strategy: Market Development

EXISTING PRODUCT > NEW MKT These strategies introduce existing products to new markets. This can mean reaching new customer segments within an existing geographic market or it may mean expanding into new geographic areas.

Functional Planning

Functional planning typically includes both a broad five-year plan to support the firm's strategic plan and a detailed annual plan for the coming year.

What is a SWOT analysis? What role does it play in the planning process?

Internal Environment: SW External Environment: OT A SWOT enables a firm to develop strategies that make use of what the firm does best in seizing opportunities for growth, while at the same time avoiding external threats that might hurt the firm's sales and profits.

Business growth strategy: Product Development

NEW PRODUCT > EXISTING MKT These strategies create growth by selling new products in existing markets. Product development may mean that the firm improves a product's performance, or it may mean extending the firm's product line by developing new variations of the item.

Business growth strategy: Diversification

NEW PRODUCT > NEW MKT These strategies emphasize both new products and new markets to achieve growth.

Monopoly

One seller w/ full control over entire market. Entry is impossible.

What is a strategic business unit (SBU)?

SBU: Self-contained individual units within the firm, each having its own mission, business objectives, resources, managers, and competitors.

Strategic Planning

Strategic planning is the managerial-decision process that matches the organization's resources and capabilities to its market opportunities for long-term growth.

Discretionary Income Competition

The amount of money people have left after paying for necessities such as housing, utilities, food, and clothing. Marketers must compete with other marketers for this "leftover" money.

Describe the business cycle. How does it influence marketing decisions?

The overall pattern of changes or fluctuations of an economy (prosperity, recession, and recovery). The business cycle is especially important to marketers because of its effect on customer purchase behavior. During times of prosperity, consumers buy more goods and services. Marketers are busy trying to grow the business and maintain inventory levels and even to develop new products to meet consumers' willingness to spend. During periods of recession, consumers simply buy less and marketers try to maintain their level of sales.