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SBU, BCG, strategic
Strategic Marketing, Portfolio analysis, SBU, BCG
| Question | Answer |
|---|---|
| Strategic Planning | The process of developing and maintaining a strategic fit between the organisation's goals and capabilities and its changing marketing opportunities. |
| Steps in strategic planning | 1.Define company mission. (1-3 corporate level) 2.Set company objectives. 3.Design Business portfolio. 4.Planning marketing and other functional strategies. (BU, product +market level). |
| Mission statement | A statement of the organisation's purpose - what it wants to accomplish in the larger environment. Should be market-orientated. |
| SBU | Strategic business units are the key business that make up a company. |
| Business portfolio | The collection of businesses and products that make up the company. |
| Portfolio analysis | The process by which management evaluates the products and businesses that make up the company. |
| Growth-share matrix | A portfolio planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks and dogs. |
| Stars | High growth, high share businesses. Need heavy investment to finance growth. Eventually turn into cash cows. |
| Cash Cows | Low growth, high share businesses. Need less investment. Produce lots of cash. |
| Question marks | low share in high growth markets. Require a lot of cash to hold their share. Management needs to think hard about which question marks should be phased out or built into stars. |
| Dogs | low growth, low share products. |
| Problems with BCG | Difficult and time consuming, and costly to implement. Hard to define SBU's and measure market share and growth. Focuses on classifying current businesses, but provide little advice for future planning. |
| Product/market expansion grid | A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification. |
| Market penetration | making more sales without changing original product lines. Spur growth through marketing mix improvements. E.g. adjustments to product design, advertising, pricing and distribution efforts. |
| Marketing development | identifying and developing new markets for its current products. |
| Product development | offering modified or new products to current markets. |
| Diversification | Starting up or buying new businesses outside of its current products and markets. |
| Value Chain | The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm's products. |
| 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. |
| Marketing strategy | The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. Two key questions: Which customers will we serve and how will we create value for them? |
| Market segmentation | Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours, and who might require separate products or marketing programs. |
| Market segment | A group of consumers who respond in a similar way to a given set of marketing efforts. |
| Market targeting | The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. |
| Positioning | Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. |
| Differentiation | Actually differentiating the market offering to create superior customer value. |
| Marketing Mix | The set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market. |
| Product | The goods and services combination the company offers to the target market. |
| Price | The amount of money customers must pay to obtain the product |
| Placement logistics | Company activities that make the product available to target customers and end consumers. |
| Promotion | activities that communicate the merits of the product and persuade target customers to buy it. |
| People | Services are often people based. |
| Process | E.g. when a person checks in and out of airlines. |
| Physical evidence | Providing physical evidence to consumers to aid the marketing process. |
| SWOT analysis | Strengths (Internal), Weaknesses(Internal), Opportunities(External) and Threats(External). |
| Marketing implementation. | The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives. |
| Executive Summary | Brief summary of main goals and recommendations of the plan for management to review. Followed by table of contents. |
| Current Marketing situation | Describes the target market and company's position in it.Includes: Market description, Product review, Review of competition and review of distribution. |
| Threats and Opportunities analysis. | Assesses major threats and opportunities. |
| Objectives and issues | States the marketing objectives and key issues that might affect them. |
| Marketing Strategy | Outlines the broad marketing logic by which the business hopes to create customer value and relationships and the specifics of target markets, position and marketing expenditure levels. |
| Action programs. | How marketing strategies will be turned into specific action programs. |
| Budgets | A marketing budget that is essentially a profit and loss statement. |
| Controls | Control that will be used to monitor progress and allow higher management to review implementation results and spot products not meeting their goals. |
| Functional organisation | Different marketing activities are headed by a functional specialist. e.g. sales manager, advertising manager. |
| Geographic organisation | People assigned to specific territories. |
| Product management organisation | Product manager develops and implements a complete strategy and program for a specific product or brand. |
| Market or customer management organisation. | Marketing managers are responsible for developing marketing strategies and plans for their specific markets or customers. |
| Marketing control | Process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved. Operating control and strategic control are two types. |
| OPerating control | Checking ongoing performance against the annual plan and taking corrective action when necessary. |
| Strategic control | Looking at whether the company's basic strategies are well matched to its opportunities. |
| ROI | The net return from a marketing investment divided by the costs of the marketing investment. |
Created by:
acha5066
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