Chapter 2
Questions to ask when forging a sound mission?
What is our business? Who is the customer? What do consumers value? What should our business be?
Strengths and Weaknesses are internal
While Opportunities and threats are external
Implementation: Plans converted to actions by assigning:
Who Where When How
Growth Share Matrix
a portfolio planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative share (Helps determine their strength in the market or industry)
product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration market development product development or diversification
market developments
a strategy for company growth by identifying and developing new market segments for current company products
Differentiation
actually differentiating the market offering to create a superior customer value
SWOT analysis
an overall evaluation of the company S) Strength W) Weakness O) Opportunities T) Threat
Positioning
arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers
market or customer management organization
companies that sell one product linnet many different types of markets and customers that have different preferences
geographic organization
company that sells across the country or internationally
management organization
company with many different products or brands
functional organization
different marketing activities are headed by a functional specialist (sales manager, advertising manager, customer-service manager, etc...)
CMO (Chief marketing Officer)
heads up the company's entire marketing operation and represents marketing on the company's top management team
market penetration
making more sales without changing its product
product development
offering modified or new products to current markets
Downsizing
reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
diversification
starting up or buying businesses outside of its current products and markets
Define a Business Portfolio
the collection of businesses and products tat make up the company
marketing strategy
the marketing logic by which the company hopes to create customer relationships
Return on marketing Investment (Marketing ROI)
the net return from a marketing investment divided by the cost of th marketing invesment
value delivery work
the network made up of the company suppliers distributors and ultimately 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 organizations goals and capabilities and its changing marketing opportunities
marketing control
the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved
Portfolio Analysis
the process which management evaluates the products and businesses that make up the company
value chain
the series of internal departments that carry out value-creating activities to design, product, market, deliver and support a firm's products
marketing mix
the set of controllable tactical marketing tools - product, price, place, promotion - that the firm blends to produce the response it wants in the target market
Marketing Control Steps
1. First set specific management goals 2. Measure performance in marketplace 3. Evaluates the causes of any differences between expected and actual performance 4. Take corrective action to close the gaps
Marketing Control involves four steps
1. Set Specific Marketing Goals 2. Measure performance in the marketplace 3. Evaluate Perfomance 4. Take Corrective Action To Close The Gaps Between Goals and Performance
Mission Statement?
A statement of the organization's purpose - what it wants to accomplish in the larger environment
Four Marketing Management Functions:
Analysis: SWOT Planning: Prepare Marketing Plan Implementation:Carry Out the Plan Control: Evaluate and Course Correct
Transforming Four P's To 4 C's
Costumer solution (Product) Customer Cost (Price) Convenience (Place) Communication (Promotion)
Corporate Level (First 3)
Defining the company mission Setting objectives and goals Designing the business portfolio
Strategic Planning (Step 3): Asses the business portolio
Evaluate firm's current business and products, and decide which should receive more, less, or no investment
Operating Control
Evaluates performance against the annual plan and take corrective actions
Strategic Control
Evaluates whether strategies match opportunities
Question Marks (Matrix)
High Growth/Low Share Require a lot of cash to hold their share and increase Management has to think hard which it wants to turn into stars or which to weed out
Stars (Matrix)
High growth/High Share business or products. Need heavy investments to finance their fast growth Will eventually slow down and turn into Cash Cows
Strategic Business Units (SBU)
Key businesses that make up the company (can be a product line within a division, a brand, or a product)
Cash Cows (Matrix)
Low growth/High Share business or products Need less investments to hold their market share Product a lot of cash to pay for bills and support other SBUs that need investments
Dogs (Matrix)
Low growth/Low Share May generate enough cash to maintain Do not promis to be large source of cash
Strategic Planning (Step 2): Translate Mission into Supporting Objectives
Make Goals/Objectives (SMART) Specific Measurable Attainable Relevant Time-Based
Business unit, product, and market level: (4th)
Planning marketing strategy as well as other functional strategies
Strategic Planning (Step 1): Mission Statement
State the organizations purpose - the value it offers, and for whom