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MKTG Chapter 2
Strategic Planning for Competitive Advantage
34
Marketing
Undergraduate 3
02/10/2012

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Cards

Term

 

Define Strategic Planning.

Definition

 

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

 

Strategic planning requires long-term commitments of resources.

Management Commitment.

Term

 

Define Planning

Definition

 

 

 

The process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Term

 

Define Marketing Plan

Definition

 

 

A written document that acts as a guidebook of marketing activities for the marketing manager.

Term

 

 

Why write a Marketing Plan?

Definition

Provides a basis for comparison of actual and expected performance.

 

Provides clearly stated activies to work toward common goals.

 

Serves as a reference for the success of future activities.

 

Provides an examination of the marketing environment.

 

Allows entry into the marketplace with awareness.

Term

 

 

What are the elements of a marketing plan?

Definition

Business Mission Statement

 

Objectives

 

Situation or SWOT analysis

 

Targeted Marketing Strategy

 

Implementation Evaluation Control

Term

 

 

Utilization of integrated marketing communications plan (social media) is a part of ___________?

Definition

 

 

 

Target Market Strategy

Term

 

 

What is a business mission statement?

Definition

 

 

Brand Essence is also called the brand's mission statement. A phrase for statement for internal use, to guide brand practices.

 

It should be 25 words or less, easy to read and easy to remember.

Term

 

 

What are the characteristics of a Strategic Business Unit?

(SBU)

Definition

A distinct mission and specific target market

 

Control over their resources

 

Their own competitors

 

Plans independent of other SBUs

 

Popular technique used by large organizations as a management tool.

Term

 

 

Define Marketing Objective.

Definition

 

 

A statement of what is to be accomplished through marketing activities.

Term

 

Marketing objectives must be ______.

Definition

 

Realistic

 

Measurable

 

Time specific

 

Consistent with and indicate the organization's priorities.

Term

 

 

What is SWOT Analysis?

Definition

 

Internal Strengths (S)

 

Internal Weakness (S)

 

External Opportunities (O)

 

External Threats (T)

Term

 

 

Define Environmental Scanning.

Definition

 

 

The collection and interpretation

of information about forces, events, and relationships

in the external environment that may affect

the future of the organization or the implementation

of the marketing plan.

Term

 

 

Define Competitive Advantage.

Definition

 

 

A set of unique features of a

company and its products that are perceived

by the target market as significant and superior to the competition.

A Unique aspect of a firm’s offering, or the firm itself (image/brand), that causes target customers to patronize the firm rather than the competition.

Term

 

 

Types of Competitive Advantage

Definition

 

Cost (hard to beat)

 

Product/Service Differentiation

 

Niche Strategies

Term
Ways to obtain the cost competitive advantage:
Definition

Obtain inexpensive raw materials

 

Create efficient operations

 

Design products for ease of manufacture

 

Control overhead costs

 

Avoid marginal customers

Term

 

 

What are sources of cost reduction?

Definition

Experience curves

Production design

Efficient labor

Reengineering

No-frills products

Production Innovations

Government Subsidies

New Service Delivery Methods

 

Term
Define Product/Service Differentiation Competitive Advantage.
Definition

The provision of something that is unique and valuable to buyers beyond simply 

offering a lower price than
the competition’s.

Term

 

 

Examples of Product/Service Differentiation:

Definition

Brand Names

 

Strong dealer network

 

Product reliability

 

Image

 

Service

Term

 

 

Define Niche Competitive Advantage.

Definition

The advantage achieved when a

firm seeks to target and effectively

serve a small segment of the market.

May not last long.

 

Term
Define Sustainable Competitive Advantage.
Definition

 

 

An advantage that cannot be copied by the competition.

Term

 

What are the sources of sustainable competitive advantage?

Definition

Patents

 

Copyrights

 

Locations

 

Equipment

 

Technology

 

Customer Service

 

Promotion

Term

 

Identify Strategic Alternatives.

Definition

Market Penetration: Increase marketshare among existing customers

 

Market Development: Attract new customers to existing products

 

Product Development: Create new products for present markets

 

Diversification: Introduce new products into new markets

Term
Define Portfolio Matrix
Definition
Created by the Boston Consulting Group, the Portfolio Matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.
Term
What are the four categories used in the Portfolio Matrix?
Definition

Star: Market leader

 

Cash Cows: generates more cash than it needs

 

Problem Children or Question Mark: rapid growth but poor profit margin

 

Dog: low growth potential and small market share

Term
Define Marketing Strategy.
Definition
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
Term
What are the four Portfolio Matrix Strategies?
Definition

Build

 

Hold

 

Harvest

 

Divest

Term
Define Market Opportunity Analysis (MOA).
Definition

The description and

estimation of the size and sales potential of market segments that are of interest to the

firm and the assessment of key competitors in these market segments.

Term
Define marketing mix.
Definition

Also referred to as the four P's:

Product

Place

Pricing

Promotion

 

Term
What are the four C's?
Definition

Co-creation

 

Community

 

Customization

 

Choice

Term
Define Implementation.
Definition
The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives.
Term
Define Evaluation.
Definition

Gauging the extent to which marketing objectives have been achieved during the specified time period. Four common reasons for failing to achieve a marketing objective are unrealistic marketing objectives, inappropriate marketing strategies in the plan, poor

implementation, and changes in the environment after the objective was specified and the strategy was implemented.

Term
Define Control.
Definition
Provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.
Term
What is a marketing audit?
Definition
A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.
Term
What are the four characteristics of a marketing audit?
Definition

Comprehensive

 

Systematic

 

Independent

 

Periodic

 

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