Marketing Test 1
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Define Strategic Planning.
- The process of developing and maintaining a strategic fit between the organization's goal and capabilities and its changing marketing opportunities.
- Adapt the firms future needs and changing conditions.
What are the steps of the planning process?
- Defining the company mission
- Setting company objectives and goals
- Designing the business portfolio
- Planning marketing and other functional strategies
Define Mission Statemet.
A statement of the organization's purpose-what it wants to accomplish in the large environment. A clear mission statement acts as an "invisible hand" that guides people in the organization.
Mission Statements answer which questions?
- What is our business?
- What do cusumers value?
- Who is our customer?
- What should our business be?
Characteristics of a mission statements.
- They should be market oriented and defined in terms of satisfying basic customer needs.
- Should be realistic.
- Should be meaningful and specific.
- Should fit the market environment.
- Should be based on distinctive competencies, emphasize company's strengths.
- Should be motivating.
The mission statement should translate into what, and who's responsible?
- Should translate into supporting objectives for each level: mission -> goals -> objectives -> strategies.
- Managers are responsible for achieving them.
Define Business Portfolio.
- The collection of businesses and products that make up the company.
- Is guided by the company's mission statements and objecives.
What are the two planning steps for a business portfolio?
- First, the company must analyze its current business portfolio and decided which businesses should receive more, less, or no investment.
- Second, it must shape the future portfolio by developing strategies for growth and downsizing.
What is strategic business unit (SBUs)?
- An SBU can be a company division, a product line within a division, or sometimes a single product or brand.
- A unit of the company that has a seperate mission and objectives and that can be planned independently from other company business.
Define Portfolio Analysis.
- The process by which management evaluates the products and businesses that make up the company.
- Resources are directed toward more profitable businesses while weaker one are phased out or dropped.
Define Growth-share matrix.
A portfolio-planning method that evaluates a company's strategic business units in terms of its market growth rate (a measure of market attractiveness) and relative market share (a measure of company strength in the market). Figure 2.2
List and define the classification for the Growth-share matrix.
- Star: high growth, high share businesses or products; often need heavy investments to finance their rapid growth; eventually growth slows down and turn into cash cows.
- Cash Cows: low-growth, high-share businesses or products; successful SBU's that need less investment to hold their market share; produce a lot of cash that company uses to pay its bills and support other SBU's that need investment.
- Question Marks: low-share business units in high-growth markets; require a lot of cash to hold their share; management has to think hard about which question mark it should try to build and which should be phased out
- Dogs: are low-growth, low-share businesses and products; may generate enough cast to maintain themselves but do not promise to be large source of cash
What is the problem with the Growth-share Matrix?
It focuses on classifying current businesses, but provide little advice for future planning.
Marketing has the main responsibility for...
...achieving profitable growth for the company; marketing needs to identify, evaluate, and select market opportunities and lay down strategies for capturing them.
What is the marketing concept?
Strategy should build profitable relaionships with important consumer groups (guiding philosophy).
Define Product/market Expansion Grid.
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Define Market Penetration.
A strategy for company growth by increasing sales of current products to current maket segments without changing the product.
Define Market Development.
A strategy for company growth by identifying and developing new market segments for current company products.
Define Product Development.
A strategy for company growth by offering modified or new products to current market segments.
A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.
Reducing the business portfolio by eliminaiong products or business units that are not profitable or that no longer fir the company's overall strategy.
Explain partner relationship management.
Marketers must closely work with partners in other company departments to form an effective internal value chain that serves customers. Also, they must partner effectively with other companies in the marketing system to form a competitively superior external value chain and a value delivery network.
Define 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.
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.
Define Marketing Strategy.
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
What does the marketing strategy process involve?
- market segmentation
- market tareting
Define Market Segmentation.
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
Define Market Segment.
A group of consumers who respond in a similar way to a given set of marketing efforts.
Define Market Targeting.
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.
Actually differntiating the maket offering to create superior customer value.
Define Marketing mix.
The set of conrollable tactible maketing tools-product, price, place, and promotion-that the firm blends to produce the response it wants in the target market.
- The goods-and-services combination the company offers to the target market.
- -variety, quality, design, features, brand name, packagin, services
- The amount of money customers must pay to obtain the product.
- -list price, discounts, allowances, payment period, credit terms
- Company activities that make the product available to target consumers.
- -channels, coverage, assortments, location, inventory, transportation, logistics
- Activities that communicate the merits of the product and persuade target customers to buy it.
- -advertising, personal selling, sales promotion, public relations
What are the buyer's view to the market mix (4Cs)?
- Customer solution
- Customer cost
Explain the maketing process.
- Consists of four functions-analysis, planning, implementaion, and control.
- The company first develops companywide strategic plans and then translates them into marketing and other plans for each division, product, and brand. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed. Finally, marketing ananlysis provides information and evaluations needed for all of the other maketing activities.
- Figure 2.6
Define SWOT analysis.
- An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).
- -strengths-internal capabilities that may help a company reach its objectives
- -weaknesses-internal limitation that may interfere with a company's ability to acheive objectives
- -opportunities-external factors that the company may be able to exploit to its advantage
- -threats-current and emerging external factors that may challenge the company's performance
- Figure 2.7
Define Market Implementation.
The process that turns marketing strategies and pland into marketing actions in order to accomplish strategic marketing objectives.
Define 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.
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