30 Questions
What are the four steps involved in strategic planning?
Defining mission, setting objectives, designing business portfolio, developing functional plans
What should the company's mission be consistent with?
Market environment
What guides decisions about the business portfolio?
Detailed supporting goals and objectives
What is the purpose of analyzing and adjusting the current business portfolio?
To produce a business portfolio that best fits the company's strengths and weaknesses to opportunities in the environment
What do many companies now design for portfolio planning?
More-customized portfolio-planning approaches
What is the focus of strategic planning?
Long run survival and growth
What is the primary focus of market segmentation?
Identifying consumers with similar response to marketing efforts
What does market targeting involve?
Evaluating each segment’s attractiveness and selecting one or more segments to enter
What is the starting point for effective positioning?
Differentiation and creating superior customer value relative to the competition
What does marketing analysis provide inputs to?
Corporate strategic planning and marketing planning
What does a detailed marketing plan translate corporate and marketing strategies into?
A tangible blueprint
What does marketing control involve?
Setting specific marketing goals, measuring performance, and taking corrective action
What are the key components of a marketing plan?
Executive summary, current marketing situation, threats and opportunities, objectives and issues, marketing strategies, execution plans, budgets, and controls
What is the main concern regarding the four Ps concept?
It takes the seller’s view of the market, not the buyer’s view
What is essential for designing an integrated marketing mix to reach target consumers?
Market segmentation, targeting, differentiation, and positioning
What is crucial for evaluating the results of marketing strategies and ensuring that objectives are achieved?
Marketing return on investment (ROI) and marketing control
What plays a crucial role in a company's strategic planning by providing a marketing concept philosophy and identifying attractive market opportunities?
Marketing
What is important for effective marketing in terms of departmental organization?
Functional marketing organization, geographic organization, product management organization, or market management organization
What are the redefined four As in marketing, as mentioned in the text?
Acceptability, Affordability, Accessibility, Awareness
What is the role of marketing leaders, such as the chief marketing officer, in the strategic planning process at the corporate level?
They play a key role in developing the mission and strategic plan.
What is the purpose of business portfolio analysis in strategic planning?
To evaluate and plan for the future of the products and businesses that make up the company.
What are the four quadrants in the growth-share matrix developed by the Boston Consulting Group (BCG)?
Stars, Cash cows, Question marks, Dogs
How are most standard portfolio analysis methods evaluating strategic business units (SBUs)?
On the attractiveness of the SBU’s market or industry and the strength of the SBU’s position in that market or industry.
What is the starting point of the strategic planning process at the corporate level?
Defining the company's overall mission
What are the four strategies a company can pursue for each Strategic Business Unit (SBU)?
Invest, hold, harvest, or divest
What is the role of dogs in the Growth-Share Matrix?
Low-growth, low-share businesses that may absorb managerial energy and attention
What does the product/market expansion grid identify?
Growth opportunities through market penetration, development, product development, or diversification
What is the logic of marketing strategy aimed at achieving?
Creating customer value and achieving profitable customer relationships
How do SBUs change positions in the growth-share matrix over time?
Starting as question marks, becoming stars, then cash cows, and eventually dying off or turning into dogs
What is market segmentation primarily concerned with?
Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors
Study Notes
Strategic Planning and Business Portfolio Design
- The Growth-Share Matrix categorizes business units as question marks, stars, cash cows, and dogs based on market share and market growth.
- Question marks require a lot of cash and management must decide which ones to build into stars and which to phase out.
- Dogs are low-growth, low-share businesses that may absorb managerial energy and attention.
- Cash cows are cash-generating machines, but a portfolio with only cash cows is not sustainable in the long run.
- The company must determine the future role of each Strategic Business Unit (SBU) and can pursue one of four strategies for each SBU: invest, hold, harvest, or divest.
- SBUs change positions in the growth-share matrix over time, starting as question marks, becoming stars, then cash cows, and eventually dying off or turning into dogs.
- Many companies have moved to more customized and decentralized approaches to strategic planning, tailored to their specific situations and led by cross-functional teams.
- Marketing plays a crucial role in achieving profitable growth, identifying market opportunities, and crafting strategies for capturing them.
- The product/market expansion grid is a portfolio-planning tool that identifies growth opportunities through market penetration, development, product development, or diversification.
- Market penetration, development, product development, and diversification are strategies for achieving growth in different market segments or with new products.
- Marketing strategy is the logic by which the company aims to create customer value and achieve profitable customer relationships.
- Market segmentation involves dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
Test your knowledge of strategic planning and business portfolio design with this quiz. Explore concepts such as the Growth-Share Matrix, strategic business unit strategies, product/market expansion grid, marketing's role in growth, and market segmentation. Assess your understanding of portfolio planning and marketing strategies for sustainable business growth.
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