Flashcards
Chapter 2 Marketing
Cards in this deck (25)
- 1Strategic Planningmanagerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving marker oppurtunities
(ex: Starbuck's owns Seattle's Best Coffee) - 2Two Questions Strategic Marketing Management addresses1. what is the organization's main activity at a particular time?
2. how will it reach its goals? - 3Characteristics of Strategic Business Units (5) and an exampleit has:
1. a distinct mission and specific target market
2. control over its resources
3. its own competitors
4. a single business or a collection of related businesses
5. plans independent of other SBUs
Example: Campbell's Soup also owns Goldfish - 4Ansoff's Opportunity Matrix1. market penetration
2. market development
3. product development
4. diversification - 5Market Penetrationincrease market share among existing customers (bundling, discounts, lower prices)
- 6Market Developmentattract new customers to existing products (Starbucks brought Coffee to China by using local ingredients like green tea)
- 7Product Developmentcreate new products for present markets
- 8Diversificationintroduce new products into new markets (most risky strategy)
(Starbucks launches Hear Music and buys Ethos Water) - 9SWOT(internal)
1. strengths: family-friendly environment; good food
2. weaknesses: lack technological infrastructure and CRM capabilities
(external)
3. opportunities: local economic investment-plywood and tire manufacturer; contractor lodging
4. threats: lose long-term family/retreat business for short-term opportunity gains - 10Marketing Objective1. a statement of what is to be accomplished through marketing activities
2. objectives should be: realistic, measurable, time specific, and compared to a benchmark - 11Target Market Strategy1. undifferentiated
2. niche
3. differentiated - 12Undifferentiatedappeal to the entire market with one marketing mix
- 13Nicheconcentrate on one marketing segment
- 14Differentiatedappeal to multiple markets with multiple marketing mixes
- 15A Marketing Audit is:1. comprehensive
2. systematic
3. independent
4. periodic - 16StarA star is a fast-growing market leader. Stars usually have large profits but need cash to finance growth. A marketing tactic is to protect market share by reinvesting earnings in product improvement, distribution, promotion, and production efficiency. Strive to capture new users as they enter the market.
- 17Cash CowA cash cow generates more cash than it needs to maintain market share. It is in a low-growth market, but the product has dominant market share. The marketing strategy is to maintain market dominance by being the price leader and by making technological improvements. Allocate excess cash to high-growth prospects.
- 18Problem ChildA problem child shows rapid growth but poor profit margins. It has a low market share in a high-growth industry. It needs a great deal of cash to prevent conversion to dog status. Strategies are to invest to gain better market share, acquire competitors, or drop the SBU.
- 19DogA dog has low growth potential and a small market share. Most dogs leave the market. The strategy options are to divest or harvest.
- 20BuildIf an SBU has the potential to be a star, building would be an appropriate goal.
- 21HoldIf an SBU is a successful cash cow, a goal would be to hold or preserve market share.
- 22HarvestThis is an appropriate strategy for all SBUs except stars. The basic goal is to increase short-term cash return without much concern for the long-run impact.
- 23DivestGetting rid of SBUs with low shares of low-growth markets is often appropriate. Problem children and dogs are suitable for this strategy.
- 24General Electric Model1. Business Position: if company is well positioned to take advantage of opportunities in target market
2. Market attractiveness: how attractive a market is for a company to enter
3. Measured by probability, customer price sensitivity, competition, and rapid growth - 25Mission StatementThe mission statement is based on an analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions. The mission statement establishes boundaries for all subsequent decisions, objectives, and strategies.
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- Flashcards on Chapter 2 Marketing, created by libbylu116 on 09/09/2015.
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- libbylu116
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