Marketing Chapter 2
Market development
A marketing strategy that entails the creation of new customers to existing products
Product development
A marketing strategy that entails the creation of new products for present markets
Market penetration
A marketing strategy that tries to increase market share among existing customers.
Diversification
A strategy of increasing sales by introducing new products for present markets
Portfolio Mateo
A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
Marketing plan
A written document that acts as a guidebook of marketing activities for the marketing manager
Identify strategic alternatives and know a basic outline for a marketing plan
Ansoff's opportunity matrix presents four options to help management develop strategic alternatives: market penetration, market development, product development, and diversification. A marketing plan should define the business mission, perform a situation analysis, define objectives, delineate a target market, and establish components of the marketing mix.
Marketing planning
Designing activities relating to marketing objectives and the changing marketing environment
Define srategic business units (SBUs)
Each SBU should have these characteristics: a distinct mission and a specific target market, control over its resources, it's own competitors, a single business, and plans independent from other SBUs in the organization. Each SBU has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding.
Cash cow
In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
Dog
In the portfolio matrix, a business unit that has low growth potential and a small market share
Star
In the portfolio matrix, a business unit that is a fast-growing market leader
Problem child (question mark)
In the portfolio matrix, a business unit that shows rapid growth but poor profit margins
Understand the importance of strategic planning
Strategic planning is the basis for all marketing strategies and decisions. These decisions affect the allocation of resources and ultimately the financial success of the company.
Strategic planning
The managerial process of creating an maintaining a fit between the organizations objectivrs and resources and the evolving market oppurtunities
Strategic business unit (SBU)
a subgroup of a single business or collection of related businesses within the larger organization
Planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
