Chapter 2

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  1. strategy
    An organization’s long-term course of action that delivers a unique customer experience while achieving its goals.
  2. The corporate level
    is where top management directs overall strategy for the entire organization. Long term strategy (CEO, CMO, etc)
  3. Strategic Business Unit
    which is a subsidary division or unit that markets a set of offerings to a clearly define market (Nintendo Japan, Nintendo America, Nintendo Europe)
  4. functional level
    where groups of specialists actually create value for the organization (Information systems, Finance, Marketing, etc)
  5. cross-functional teams.
    These consist of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals (Marketing and financing to young adults)
  6. core values
    (Organizaiton Foundation)The fundamental, passionate, and enduring principles that guide an organization
  7. Mission (Statement)
    (Organization Foundation) A statement or vision of an organization’s function in society. ("we will make you the best person in the world" - some company)
  8. organizational culture
    (Organization Foundation)The set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization. (Throwing a party and talk about what good they have done)
  9. business
    (Organizational Direction)The underlying industry or market sector of an organization’s offering (Need to understand what business we're in, not in the "railroad business, we are in the "transportation business")
  10. business model
    (Organizational Direction)the strategies an organization develops to provide value to the customers it serves (changes how you promote and market your business)
  11. goals (objectives)
    (Organization Direction) Statements of an accomplishment of a task  to be achieved, often by a specific time.
  12. Types of goals
    • (Organizational Direction)
    • 1.Profit
    • 2. Slaes
    • 3. Market Share
    • 4. Quality
    • 5. Customer Satisfaction
    • 6. Employee Welfare
    • 7. Social Responsibilty
  13. Market Share
    • (Organization Direciton)
    • Ratio of a firm’s sales to the total sales of all firms in the industry (Apple has a huge market share of tablets)
  14. Variation by Level
    • (Organizational Strategies)
    • Moving down the levels in an organization involves creating increasingly specific, detailed strategies and plans
  15. Variation by Product
    Most organizations develop a marketing plan as a part of their strategic marketing planning efforts. A marketing plan is a road map for the marketing actions of an organization for a specified future time period
  16. marketing plan
    • A road map for the marketing activities of an organization for a specified future time period. 
    • (Marketing to the next generation of kids or adults in the future
  17. marketing dashboard
    • (Tracking Strategic Performance with Marketing Dashboards)
    • The visual computer display of essential marketing information. (Thing a diagnostic tool for a car)
  18. Marketing metric
    • (Tracking Strategic Performance)
    • A measure of the value or trend of a marketing action or result. (What to display is critical, car example, how much gas do I have. What's my speed. Do i really need to know what my engine compression rate is while driving?)
  19. data visualization
    • (Tracking Strategic Performane
    • which presents information about an organization’s marketing metrics graphically so marketers can quickly (1) spot deviations from plans during the evaluation phase and (2) take corrective actions (Cars running out low on oil, STOP THE FUCKING CAR)
  20. competencies
    • (Setting Strategic Directions, Where are we Now)
    • which are its special capabilities—the skills, technologies, and resources—that distinguish it from other organizations and provide customer value (Toyota = Safe and reliable, BMW = THE ultimate driver experience)
  21. Strategic Directions: Customers
    a company must provide genuine value to its customers in order to make them a repeat customer( Guarantee. Period)
  22. Strategic Directions: Competitors
    Tons of competition. There are plenty of competitors for different markets but you are still in competition with them (Toyota vs BMW vs Ford vs GM etc)
  23. business portfolio analysis
    • (Growth Strategy: Where do we want to go)
    • A technique that managers use to quantify performance measures and growth targets of their firms’ strategic business units. (How much cash does it generate vs how much cash it needs before it makes a profit)
  24. BCG's business portfolio analysis: Question Mark
    are SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management’s dilemma for these SBUs: choosing the right ones to invest in and phasing out the rest. (Question Marks)
  25. BCG's business portfolio analysis: Stars
    are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. (iPads)
  26. BCG's business profolio analysis: Cash cows
    are SBUs that generate large amounts of cash, far more than they can use. They have dominant shares of slow-growth markets and provide cash to cover the organization’s overhead and to invest in other SBUs. (iPods)
  27. BCG's business analysis portfolio: Dogs
    Dogs are SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may not become real winners for the organization (iMacs, Mac Pro, Macbook)
  28. diversification analysis
    • (Growth Strategy, Where do we want to go)
    • A technique a firm uses to search for growth opportunities from among current and new products and markets. (Researching new ways to sell to current or new customers)
  29. Market Penetration
    (Market Product Stratgies/Growth Strategy)  is a marketing strategy to increase sales of current products in current markets, use hold strategy with cash cows (Selling more Ben and Jerry's to Americans)
  30. Market development
    • (Market Product Stratgies/Growth Strategy) 
    • is a marketing strategy to sell current products to new markets, Doing Build Strategy with Stars (Selling Ben and Jerry's to Brazilians for the first time)
  31. Product development
    • (Market Product Stratgies/Growth Strategy)
    •  is a marketing strategy of selling new products to current market, Doing Build Strategy with Stars and Cash Cows ( Ben and Jerry's Selling a new product such as children's clothing to Americans)
  32. Diversification
    • (Market Product Stratgies/Growth Strategy)
    • is a marketing strategy of developing new products and selling them in new markets. Build Strategy that is high risk and can use Plenty of different products (Selling Ben and Jerry's clothing to Brazilians)
  33. Strategic Marketing Process
    • (Strategic Marketing Process)
    • An approach whereby an organization allocates its marketing mix resources to reach its target markets.
  34. Situation Analysis
    • (Strategic Marketing Process/Step 1: Planning  phase)
    • Taking stock of where a firm or product has been recently, where it is now, and where it is headed.
  35. SWOT Analysis
    • (Strategic Marketing Process/ Step 1: Planning Phase)
    • An acronym describing an organization’s appraisal of its internal strengths and weaknesses and its external opportunities and threats (You want to build onto its strength and correct your weaknesses, grab oppurtunies, and avoid a threat)
  36. market segmentaion
    • (Strategic Market Process/ Step 2: Market Product Process and Goal Setting)
    • The aggregating of potential buyers into groups that have common needs and will respond similarly to a marketing action (Medtronic marketing pacemakers for international markets)
  37. Goal Setting
    • (Strategic Market Process/ Step 2: Market Product Process and Goal Setting)
    • 1. Set marketing and product Goals
    • 2. Select Target Markets
    • 3. Find Points of Difference
    • 4. Position the product
  38. points of difference
    • (Strategic Market Process/ Step 2: Market Product Process and Goal Setting)
    • Those characteristics of a product that make it superior to competitive substitutes (Toyota: reliablity, low cost, A to B car)
  39. The Implementaiton
    • Obtaining Resources
    • Desining the Market Organization
    • Define Precise Tasks, Responsibilities and Deadlines
    • Execute Marketing Plan
  40. market strategy
    A marketing program needs a marketing organization to implement it.
  41. marketing tactics.
    Detailed day-to-day operational decisions essential to the overall success of marketing strategies
  42. Strategic Planning.
    • (Classroom)
    • is “a process” where the business determines and documents what its future actions will be (ex. Business wants to capture more female students)
  43. The Plan
    • (Classroom)
    • is “the document” that records what the business will do.
  44. Competitive Advantage
    is the ability of a firm to outperform the competition by providing customers with a proprietary benefit the competition can’t.
  45. core competency
    • (Classroom)
    • an ability that is clearly superior to that of its direct competition. Something they know more about or do better
  46. BCG MATRIX: BUILD STRATEGY
    improve market position (stars and question marks). Increase promotion, and adjust price and distribution (place) to improve performance.
  47. BCG MATRIX: HOLD STRATEGY
    remain with current position (cash cows). Maintain marketing effort
  48. BCG MATRIX: Harvest STRATEGY
    sell SBUs to gain a short-term increase in cash flow (cows and stars).
  49. BCG MATRIX: Disinvest STRATEGY
    utilize resources better (sell dogs). Withdraw marketing support.
  50. Planning Gap
    Planning Gap is the difference between the difference between our current sales and what we want our sales to be. Strategic Planning takes place there and how we get to the sales we want to be
Author:
lightedcaboose
ID:
315715
Card Set:
Chapter 2
Updated:
2016-02-11 22:04:20
Tags:
Marketing
Folders:
marketing
Description:
marketing
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