mkt - ch # 2

8/6/2019 MKT - CH # 2

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STRATEGIC PLANNING AND THEMARKET PROCESS

Chpt. # 2

8/6/2019 MKT - CH # 2


8/6/2019 MKT - CH # 2


Mission Statement: A statement of the organizationµs purpose ± what it wants to accomplish in the larger environment.

Business Portfolio: The collection of business and productsthat make up the company

Portfolio Analysis: A tool by which management identifies and

evaluates the various businesses that makes up the company.

Strategic Business Unit (SBU): A unit of the company thathas a separate mission and objectives and that can be plannedindependently form other company businesses. An SBU can bea company division, a product line within a division, or sometimes a single product or band.

8/6/2019 MKT - CH # 2


8/6/2019 MKT - CH # 2


Growth Share Matrix: A portfolio-planning method thatevaluates a companyµs strategic business units in terms of their

market growth rate and relative market share. SBUs areclassified as stars, cash cows, question marks or dogs

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 byincreasing sales of current products to current market segmentswithout changing the product

Market Development: A strategy for company growth byidentifying and developing new market segments for currentcompany products.

8/6/2019 MKT - CH # 2


Product Development: A strategy for companygrowth by offering modified or new products tocurrent market segments. Developing the productconcept into a physical product in order to ensurethat the product idea can be turned into a workableproduct

Diversification: A strategy for company growth bystarting up or acquiring business outside thecompany¶s current products and markets

Marketing Process: The process of (1) analyzingmarketing opportunities, (2) selecting target markets,(3) developing the marketing mix, and (4) managingthe marketing effort.

8/6/2019 MKT - CH # 2


Market Segmentation: Dividing a market intodistinct groups of buyers on the basis of needs,characteristics, or behavior who might requireseparate products or marketing mixes

Marketing Segment: A group of consumers whorespond in a similar way to a given set of marketingefforts

Market Targeting: The process of evaluating eachmarket segment¶s attractiveness and selecting oneor more segments to enter

8/6/2019 MKT - CH # 2


Market Segmentation

8/6/2019 MKT - CH # 2


Market Positioning: Arranging for a product to

occupy a clear, distinctive, and desirable placerelative to competing products in the minds of target

consumers

Market Mix: The set of controllable tacticalmarketing tools-product, price, place and promotion

± that the firm blends to produce the response it

wants in the target market

Marketing Strategy: The marketing logic by which

the business unit hopes to achieve its marketing

objectives

8/6/2019 MKT - CH # 2


MarketingMix

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8/6/2019 MKT - CH # 2


Marketing Implementation: The process that turnsmarketing strategies and plans into marketingactions in order to accomplish strategic marketingobjectives

Marketing Control: The process of measuring andevaluating the results of marketing strategies and

plans and taking corrective action to ensure thatmarketing objectives as achieved

Marketing Audit: A comprehensive, systematic,independent, and periodic examination of a

companyµs environment, objectives, strategies, andactivities to determine problems areas andopportunities and to recommend a plan of action toimprove the company¶s marketing performance

mkt - ch # 2

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