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