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
the organization's purpose, what it wants to
accomplish in the larger environment
A mission statement should:
1. Not be myopic in product terms
2. Meaningful and specific
3. Motivating
4. Emphasize the company's strengths
5. Contain specific workable guidelines
6. Not be stated as making sales or profits
Business Portfolio
the collection of businesses and
products that make up the
company
Portfolio Analysis
a major activity in strategic planning
whereby management evaluates
the products and businesses that
make up the company
Strategic business units can be:
� Company division
� Product line within a division
� Single product or brand
SWOT Analysis
formal framework for identifying and framing organizational growth opportunities
Product-Market Strategy
involves selecting specific markets and profitably reaching
them through an integrated program, i.e. marketing mix
Value Chain
a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
Value Delivery Network
made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
Controlling
the measurement and evaluation of results and the taking of corrective action as needed to ensure the objectives are achieved.
� Operating control
� Strategic control
Subculture
groups of people within a culture with shared value systems based on common life experiences and situations
� Hispanic American
� African American
� Asian American
� Mature consumers
Family
the most important consumer-buying
organization in society
Lifestyle
Measures a consumer's AIOs (activities, interests, opinions) to capture information about a person's pattern of acting and interacting in the environment
Need Recognition
Occurs when the buyer recognizes a problem or need triggered by:
- Internal stimuli
- External stimuli
Information Search/Sources of Information
� Personal sources�family and friends
� Commercial sources�advertising, Internet
� Public sources�mass media, consumer organizations
� Experiential sources�handling, examining, using the
product
Evaluation of Alternatives
How the consumer processes information to arrive at brand choices
Purchase Decision
� The act by the consumer to buy the most
preferred brand
� The purchase decision can be affected by:
- Attitudes of others
- Unexpected situational factors
Post-Purchase Decision
� The satisfaction or dissatisfaction that the consumer feels about the purchase
� Relationship between:
- Consumer's expectations
- Product's perceived performance
� The larger the gap between expectation and performance, the greater the consumer's dissa
Customer Satisfaction
a key to building profitable relationships with consumers�
to keeping and growing consumers and reaping their customer lifetime value
Multiple Segmentation
used to identify smaller, better?defined target groups
PRIZM NE
classifies every American household into 66 unique segments organized into 14 different social groups.
Intermarket Segmentation
divides consumers into groups with similar needs and buying behaviors even though they are located in different countries
Undifferentiated Marketing
targets the whole market with one offer
- Mass marketing
- Focuses on common needs rather than what's
different
Differentiated Marketing
targets several different market segments and designs separate offers for each
� Goal is to achieve higher sales and stronger
position
� More expensive than undifferentiated
marketing
Micromarketing
the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
� Local marketing
� Individual marketing
Choosing a Target Market depends on:
� Company resources
� Product variability
� Product life?cycle stage
� Market variability
� Competitor's marketing strategies
Developing a Position Statement
� To (target segment and need) our (brand) is
(concept) that (point of difference)
T/F: Choosing the positioning is often easier than implementing the position.
True