Strategic planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
Mission statement
A statement of the organization's purpose�what it wants to accomplish in the larger environment.
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 in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs. (Boston Consulting Group)
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product.
Market development
A strategy for company growth by identifying and developing new market segments for current company products.
Product development
A strategy for company growth by offering modified or new products to current market segments.
Diversification
A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.
Downsizing
Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.
Value chain
The series of 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 in delivering customer value.
Marketing strategy
The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.
Market segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, 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�product, price, place, and promotion -- that the firm blends to produce the response it wants in the target market.
SWOT analysis
An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).
Marketing implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
Marketing control
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
Return on marketing investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment.
Strategic Planning
Long term plans based on marketing opportunities and company goals;
Market-Oriented Mission
Mission Statement
Setting goals & objectives
profit (market share, sales, social positions);
not for profit (education, support)
Limitations on Growth-share matrix (BCG)
How is the industry defined?
Frozen yogurt v. frozen desserts.
Product / Market Expansion Grid
Market Penetration;
Market Development;
Product Development;
Diversification
Partnering to build customer relationships
pairing product with stores, restaurants, shops, etc.
Effective marketing plan
detailed;
collaborative;
actions, responsibility & dead lines.