Podcast
Questions and Answers
What does strategic planning primarily focus on?
What does strategic planning primarily focus on?
- Developing and maintaining alignment between an organization's goals, capabilities, and marketing opportunities. (correct)
- Reducing operational costs by minimizing investments in marketing and innovation.
- Maximizing short-term profits regardless of long-term consequences.
- Reacting to immediate market trends without considering the company’s core competencies.
A company's mission statement should be broad and cover a wide array of business activities to allow for maximum flexibility.
A company's mission statement should be broad and cover a wide array of business activities to allow for maximum flexibility.
False (B)
In the context of company mission, what is 'marketing myopia'?
In the context of company mission, what is 'marketing myopia'?
Defining a business too narrowly in terms of products rather than customer needs.
The major activity in strategic planning whereby management evaluates the products, brands, and businesses that make up the company is known as __________.
The major activity in strategic planning whereby management evaluates the products, brands, and businesses that make up the company is known as __________.
In the Boston Consulting Group (BCG) approach, a business unit with a high market share in a low-growth market is classified as a:
In the Boston Consulting Group (BCG) approach, a business unit with a high market share in a low-growth market is classified as a:
A 'Dog' in the BCG matrix represents a business with high market share in a high-growth market.
A 'Dog' in the BCG matrix represents a business with high market share in a high-growth market.
What is the primary purpose of the product/market expansion grid?
What is the primary purpose of the product/market expansion grid?
Increasing sales of current products in current markets without changing the product is known as __________.
Increasing sales of current products in current markets without changing the product is known as __________.
Which growth strategy involves entering new markets with existing products?
Which growth strategy involves entering new markets with existing products?
Product development involves offering new products in existing markets.
Product development involves offering new products in existing markets.
Define 'diversification' as a growth strategy.
Define 'diversification' as a growth strategy.
A detailed __________ is needed for each business, brand, or product line and includes elements such as situation analysis, objectives, and marketing strategies.
A detailed __________ is needed for each business, brand, or product line and includes elements such as situation analysis, objectives, and marketing strategies.
Which of the following is a component of a marketing plan?
Which of the following is a component of a marketing plan?
The '6Ps' mentioned in the context of marketing strategies refer to the standard elements of financial planning.
The '6Ps' mentioned in the context of marketing strategies refer to the standard elements of financial planning.
Name three analysis frameworks used in marketing planning.
Name three analysis frameworks used in marketing planning.
In a SWOT analysis, which two elements are considered 'external'?
In a SWOT analysis, which two elements are considered 'external'?
Strengths and Weaknesses in SWOT analysis relate to external market conditions.
Strengths and Weaknesses in SWOT analysis relate to external market conditions.
In a SWOT analysis, factors that may challenge the company's performance are referred to as __________.
In a SWOT analysis, factors that may challenge the company's performance are referred to as __________.
Which of the following best describes the relationship between a company's mission statement and its strategic planning process?
Which of the following best describes the relationship between a company's mission statement and its strategic planning process?
Match the following BCG matrix categories with their appropriate characteristics:
Match the following BCG matrix categories with their appropriate characteristics:
Flashcards
What is a Strategy?
What is a Strategy?
A link between a firm and its environment, focusing on 'strategic fit'.
Strategic Planning
Strategic Planning
The process of creating and maintaining a fit between an organization's goals/capabilities and marketing opportunities.
Company Mission
Company Mission
A statement that guides what the organization aims to achieve, addressing questions about the business, customers, value, and service.
Good Mission Statement
Good Mission Statement
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Business Portfolio
Business Portfolio
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Portfolio Analysis
Portfolio Analysis
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Product/Market Expansion Grid
Product/Market Expansion Grid
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Market Penetration
Market Penetration
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Market Development
Market Development
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Product Development
Product Development
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Diversification
Diversification
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Marketing Plan
Marketing Plan
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5Cs Analysis
5Cs Analysis
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PEST Analysis
PEST Analysis
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SWOT Analysis
SWOT Analysis
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Strengths (SWOT)
Strengths (SWOT)
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Weaknesses (SWOT)
Weaknesses (SWOT)
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Opportunities (SWOT)
Opportunities (SWOT)
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Threats (SWOT)
Threats (SWOT)
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Study Notes
Companywide Strategic Planning
- It is a link between firm and environment "strategic fit"
- Strategic planning refers to the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
- It contains four steps: define mission, design business portfolio, set objectives, make functional plans
Company Mission
- It serves as guide for what the organization wants to accomplish.
- It helps answer several questions regarding what the business is, who the customers are, what they value, and how to serve them.
- A good mission statement should be market-oriented, not too broad or narrow, based on capabilities and inspirational.
- Avoid "marketing myopia" by defining the business in terms of satisfying basic customer needs.
- Revlon, a cosmetics company, defines itself as selling lifestyle and self-expression, success and status, memories, hopes, and dreams which can be summed up as "hope".
- Xerox defines their market-oriented mission as helping businesses become more productive by facilitating the scanning, storing, retrieval, revision, distribution, printing, and publishing of documents.
Market-Oriented Mission Statements
- Google aims to organize the world's information and make it universally accessible and useful.
Designing the Business Portfolio
- The collection of businesses and products that make up the company.
- Portfolio analysis is a major activity in strategic planning whereby management evaluates the products, brands and businesses that make up the company.
- Management must decide which ones get high or low investment (or are dropped)
- Management must develop strategies for growth
Boston Consulting Group Approach
- Based on relative market share, and market growth rate, there are four outcomes: Star, Question mark, Cash Cow, or Dog
Developing Strategies for Growth
- A tool for identifying company growth opportunities through market penetration, market development, product development, or diversification: product/market expansion grid.
- Market penetration involves existing markets, and existing products.
- Product development involves existing markets, and New products.
- Market Development involves new Markets, and existing products.
- Diversification involves new Markets, and New products.
Marketing Plan
- Needed for each business, brand or product line.
- The plan covers: Executive Summary, Situation Analysis, Key Issues / Problems / Opportunities, Marketing Objectives, Marketing Strategies, Action Programs and Timeline, Budgets, and Evaluation and Control.
Analysis Frameworks
- A marketing analysis framework consists of 5Cs Analysis, PEST Analysis, and SWOT Analysis.
SWOT Analysis
- A SWOT analysis consists of two internal outcomes: strengths and weaknesses, and two external outcomes: Opportunities, and Threats.
- Strengths are Internal capabilities that may help a company reach its objectives.
- Weaknesses are internal limitations that may interfere with a company's ability to achieve its objectives.
- Opportunities are external factors that the company may be able to exploit to its advantage
- Threats are current and emerging external factors that may challenge the company's performance.
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