Term
| Planning & Marketing Planning |
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Definition
• Planning: Process of anticipating future events and conditions and of determining the best way to achieve organizational objectives.
• Marketing planning: Implementing planning activities devoted to achieving marketing objectives.
Why Write a Marketing Plan?
- Provides a basis for comparison of actual and expected performance
- Provides clearly stated activities to work toward common goals
- Serves as a reference for the success of future activities
- Allows entry into the marketplace with awareness |
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Term
| Strategic Planning vs. Tactical Planning |
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Definition
• Strategic planning: Process of determining an organization’s primary objectives and adopting courses of action that will achieve these objectives.
• Provides long-term direction for decision makers.
• Tactical planning: Planning that guides the implementation of activities specified in the strategic plan.
• Addresses shorter-term actions and current near-term activities. |
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Term
| Planning at Different Organizational Levels |
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Definition
- Strategic Planning: Organization-wide objectives; fundamental strategies; long-term plans; total budget (Top management - board of directors, CEO, COO, CFO)
- Tactical Planning: Quarterly and semiannual plans; business unit budgets; divisional policies and procedures. (Middle Management - general sales manager, team leader, directors)
- Operational Planning: Daily and weekly plans; unit budgets; departmental rules and procedures (Supervisory Management - Regional manager, supervisor) |
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Term
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Definition
- Mission: Essential purpose that differentiates one company from another.
- The mission statement specifies the organization's overall goals and operational scope and provides general guidelines for future management actions.
- Objectives: Guide the development of marketing objectives and plans.
- Should be in the mission statement.
- Should state specific, quantitative intentions along with deadlines for achieving them.
- Examples:
• Generate a 12 percent profit over the next 18 months.
• Attain a 15 percent share of the market by 2012.
• Add 75 new outlets within the next two years. |
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Term
| Organizational Resources & Strengths / Risks & Opportunities |
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Definition
• Involves a back-and-forth assessment of strengths, risks, and available opportunities.
• Resources include the capabilities of the firm’s production, marketing, finance, technology, and employees.
• Strengths help planners set objectives, develop plans, and take advantage of marketing opportunities. |
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Term
| Formulating, implementing and monitoring a marketing strategy |
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Definition
Marketing Strategy: A firm's overall program for selecting and satisfying a target market.
• Should be efficient, flexible, adaptable, and implemented company-wide.
• Goal of tools and techniques is to create sustainable competitive advantage for a firm. (An advantage where other companies cannot provide the same offering or value)
• Blends elements of the marketing mix: product, distribution, promotion, and price. |
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Term
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Definition
• Porter’s Five Forces Model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategies:
• The threat of new entrants
• The bargaining power of buyers
• The bargaining power of suppliers
• The threat of substitute products
• Rivalry among competitors |
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Term
| Porter's Five Forces (Image) |
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Definition
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Term
| First Mover & Second Mover Strategies |
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Definition
• First mover strategy Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner.
• Second mover strategy Theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace. |
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Term
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Definition
• SWOT: Strengths, Weaknesses, Opportunities and Threats
• SWOT Analysis: Analysis that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats. |
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Term
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Definition
• Strategic window: Limited periods during which the key requirements of a market and the particular competencies of a firm best fit together.
• Example: Increasing disposable incomes cause a soaring demand for cars in India; HR block during tax season |
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Term
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Definition
• The group of people toward whom the firm directs its marketing efforts and merchandise.
• Need to pay attention to growing market segments.
• Example: Growing Hispanic population in United States. |
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Term
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Definition
- Blending the four strategy elements of marketing decision-making to satisfy chosen target markets:
- Product: What type of product to make.
- Price: Deals with the methods of setting profitable and justifiable prices.
- Distribution: Planning that ensures that consumers find their products in the proper quantities at the right times and places. (modes of transportation, warehousing, inventory control, order processing, marketing channels)
- Promotion: Blending together various elements of promotion to communicate most effectively with the target market.
(to fit the needs and preferences of a specific target market). |
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Term
| The Marketing Environment |
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Definition
• Five external dimensions that affect the marketing mix variables:
• Competitive, political-legal, economic, technological, and social- cultural factors.
• Rapid technological changes alter how firms do business and create new forms of competition.
• Rule of three—The three strongest, most efficient companies dominate 70 to 90 percent of a market.
• Example: Cereal manufacturers—General Mills, Kellogg’s, and Post. |
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Term
| Business Portfolio Analysis |
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Definition
| • An evaluation of a company’s products and divisions to determine the strongest and weakest ones. |
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Term
| Strategic Business Units (SBUs) |
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Definition
Key business units within diversified firms.
• Each has its own managers, resources, objectives, and competitors.
• A division, product line, or single product may define an SBU
• Firms redesign their SBUs as market conditions dictate
• Help focus the attention of managers.
• Example: General Electric (GE) in household appliances. |
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Term
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Definition
• Developed by Boston Consulting Group.
• A market share/market growth matrix which is a marketing planning tool that classifies a firm's SBU's or products according to industry growth rates and market shares relative to competing products.
- Stars
- Cash Cows
- Dogs
- Question Marks |
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Term
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Definition
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Term
| Steps in the Marketing Planning Process |
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Definition
Corporate Level:
- Define the mission of the organization
- Determine organizational objectives
- Assess organizational resources and evaluate environmental risks and opportunities
(Feedback between these two levels)
Business Unit Level:
- Formulate strategy
- Implement strategy through operating plans
- Monitor and adapt strategies when necessary based on feedback |
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Term
| Marketing's Environmental Framework |
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Definition
- Competitive
- Social-Cultural
-Technological
- Economic
- Political-Legal |
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Term
| Market Share & Growth Matrix |
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Definition
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