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| reward to a business firm for the risk it undertakes in offering a product for sale |
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| a statement of the organization’s function in society (scope), often identifying its customers, markets, products, and technologies. |
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| set of values, ideas, and attitudes that is learned and shared among the members of an organization |
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| targets of performance to be achieved, often by a specific time |
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the fundamental, passionate, and enduring principles that guide an organization
•Developed by senior management; are consistent with their essential beliefs and character.
•Serve to inspire stakeholders—employees, shareholders, board of directors, suppliers, etc. |
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| ratio of a firm’s sales to the total sales of all firms in the industry |
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| a legal entity of people who share a common mission, which motivates it to develop offerings (goods, ideas, services) that create value for both the organization and its customers |
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| organizations that develop similar offerings, when grouped together. |
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| privately owned organization that serves its customers in order to earn a profit so that it can survive |
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| an organization’s long-term course of action that delivers a unique customer experience while achieving its goals. |
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| Strategic Marketing Process |
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| approach whereby an organization allocates its marketing mix resources to reach its target markets |
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| road map for the marketing activities of an organization for a specified future period of time |
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(=high growth, high market share)
-use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.
-frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. |
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(=low growth, high market share)
- profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high |
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(=low growth, low market share)
- avoid and minimize the number of these in a company.
- beware of expensive ‘turn around plans’.
- deliver cash, otherwise liquidate |
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(= high growth, low market share)
- have the worst cash characteristics of all, because high demands and low returns due to low market share
- if nothing is done to change the market share, they will simply absorb great amounts of cash and later, as the growth stops, a dog.
- either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash |
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| Situation (SWOT) analysis |
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taking stock of where the firm or product has been recently, where it is now, and where it is headed
-Acronym is SWOT: organization’s appraisal of its Strengths and Weaknesses and its external
Opportunities and Threats
•SWOT analysis is based on four categories:
o Identify trends in the organization’s industry
o Analyze the organization’s competitors
o Assess the organization itself
o Research the organization’s present and prospective customer |
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| which involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action |
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| detailed day-to-day operational decisions essential to the overall success of marketing strategies |
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| the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place |
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| those characteristics of a product or service that make it superior to competitive substitutes |
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| refers to subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers |
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| managers set a more specific strategic direction for their businesses to exploit value-creating opportunities |
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| Each strategic business unit has this level where groups of specialists actually create value for the firm. This level is where the firm’s strategic direction becomes its most specific and focused |
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a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
o For any market, there is both a current product and new product
o For any product, there is both a current market and a new market
Example: Ben and Jerry’s |
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• Competencies – “What do we do best?” The answer are the companies’ competencies, its special characteristics that set it apart from other organizations and provide customer value. Exploiting these can lead to success
• Customers – define who are our customers
• Competitors – define who are our competitors. The distinctions among competitors is increasingly blurred so we able to identify both direct and indirect |
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| Business Portfolio Analysis |
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used to qualify performance measures and growth targets to analyze its clients’ strategic business units (SBUs) as though they were a collection of separate investments
o Purpose is to determine the appeal of each SBU or offering and then determine that amount of cash, if any, each should receive |
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