Chapter 2 Planning Implementing and Evaluating Marketing Strategies 1 Strategic Marketing Management The process of planning implementing and evaluating the performance of marketing activities and strategies both effectively and efficiently 2 Strategic Planning 3 Mission statement 4 Corporate strategy The process of establishing an organizational mission and formulating goals the corporate strategy marketing objectives and marketing strategy A long term view or vision of what the organization wants to become determines the means for utilizing resources in the functional areas of marketing production finance research and development and human resources to reach the organization s goals 5 Strategic business unit SBU is a division product line or other profit center within the parent company 6 Market 7 Market Share A group of individuals and or organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products The percentage of a market that actually buys a specific product from a particular company is referred to as that product s or business unit s 8 Market growth market share matrix A helpful business tool based on the philosophy that a product s market growth rate and its market share are important considerations in determining its market strategy Products with a dominant share of the market and good prospects for growth Have a dominant share of the market but low prospects for growth Have a subordinate share of the market and low prospects for growth 9 Stars 10 Cash cows 11 Dogs 12 Question marks Have a small share of a growing market and generally require a large amount of cash to build market share 13 Core competencies advantage over its competition 14 Market opportunity Are things a company does extremely well which sometimes gives it an Is a combination of circumstances and timing that permits an organization to take action to reach a particular target market Are temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market Is the result of a company matching a core competency to opportunities it has discovered in the marketplace Is a tool marketers use to assess an organization s strengths weaknesses opportunities and threats Is the ability of an innovative company to achieve long term competitive advantages by being the first to offer a certain product in the marketplace 15 Strategic windows 16 Competitive advantage 17 SWOT analysis 18 First mover advantage 19 Late mover advantage Is the ability of later market entrants to achieve long term competitive advantages by not being the first to offer a certain product in a marketplace 20 Sustainable competitive advantage Is one that the competition cannot copy in the foreseeable future 21 Marketing Implementation The process of putting marketing strategies into action 22 Centralized organizations Authority is concentrated at the top level 23 Decentralized organizations Decision making authority is delegated as far down the chain of command as possible 24 Performance standard 25 Sales analysis Is an expected level of performance against which actual performance can be compared Uses sales figures to evaluate a firm s current performance 26 Marketing cost analysis Breaks down and classifies costs to determine which are associated with specific marketing efforts
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