MKT 100 Chapter Notes - Chapter 2: Financial Statement, Pro Forma, Swot Analysis

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Published on 16 Apr 2013
School
Ryerson University
Department
Marketing
Course
MKT 100
Chapter Two: Developing a Marketing Plan and Marketing Strategies
September 12, 2012
Key Terms
Control Phase: The part of the strategic marketing planning process when
managers evaluate the performance of the marketing strategy and take any
necessary corrective actions.
Customer Excellence: Involves a focus on retaining loyal customers and excellent
customer service.
Diversification Strategy: A growth strategy whereby a firm introduces a new
product or service to a market segment that is does not currently serve.
Downsizing: Existing markets, reducing product portfolios, or closing certain
businesses or store or plant locations.
Implementation Phase: Where marketing managers identify and evaluate different
opportunities by engaging in a process known as segmentation, targeting, and
positioning. They then develop and implement the marketing mix by using the 4 Ps.
Locational Excellence: Involves a focus on a good physical location and Internet
presence.
Market Development Strategy: A growth strategy that employs the existing
marketing offering to reach new market segments, whether domestic or
international or segments not currently served by the firm.
Market Growth Rate: The annual rate of growth of the specific market in which the
product competes.
Market Penetration Strategy: A growth strategy that employs the existing
marketing mix and focuses the firm’s effort on existing customers.
Market Positioning: Involves the process of defining the marketing mix variables
so that target customers have a clear, distinct, desirable understanding of what the
product does or represents in comparison with competing products.
Market Segment: A group of consumers who respond similarly to a firm’s
marketing efforts.
Market Segmentation: The process of dividing the market into distinct groups of
customers where each individual group has similar needs, wants, or characteristics
who therefore might appreciate products/services geared for them.
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Marketing Planning Process: A set of steps a marketer goes through to develop a
marketing plan.
Marketing Strategy: Identifies a firm’s target market(s), a related marketing mix –
the four Ps, and the bases upon which the firm plans to build a sustainable
competitive advantage.
Mission Statement: A broad description of a firm’s objectives and the scope of
activities it plans to undertake; attempts to answer two main questions: What type
of business is it? What does it need to do to accomplish its goals and objectives?
Operational Excellence: Involves a focus on efficient operations and excellent
supply chain management.
Planning Phase: Where marketing executives and other top managers define the
mission and objectives of the business, and evaluate the situation by assessing how
various players, both inside and outside the organization, affect the firm’s potential
for success.
Product Development Strategy: A growth strategy that offers a new product or
service to a firm’s current target market.
Product Excellence: Involves a focus on achieving high-quality products and
effective branding and positioning.
Product Line: A group of products that consumers may use together or perceive as
similar in some way.
Relative Market Share: A measure of the product’s strength in a particular market,
defined as the sales of the focal product divided by the sales achieved by the largest
firm in the industry.
Situation Analysis: Is the second step in a marketing plan; uses a SWOT analysis
that assesses both the internal and external environment.
STP: The processes of segmentation, targeting, and positioning that firms use to
identify and evaluate opportunities for increasing sales and profits.
Strategic Business Unit (SBU): A division of the company that can be managed
somewhat independently from other divisions since it markets a specific set of
products to a clearly defined group of customers.
Sustainable Competitive Advantage: Something the firm can persistently do
better than its competitors that is not easily copied and thus can be maintained over
a long period of time.
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Target Marketing/Targeting: The process of evaluating the attractiveness of
various segments and then deciding which to pursue as a market.
Levels of Strategic Planning in Corporations
- Strategic planning in most organizations occurs on two levels:
1. Corporate (done by top management and focuses on overall long-term
direction of the entire company)
2. Functional
- Large companies that operate several business lines may see each of their strategic
business units develop strategic plans for their products and markets.
- SBU is a division of the company that can be managed somewhat independently
from other divisions since it markets a specific set of products to a clearly defined
group of customers (e.g. Disney’s units: media, parks, studio, consumer products)
Levels of Planning
Scope
Duration
Strategic Focus
Corporate
planning
Entire firm
Long term (5
years)
Define the
company’s mission,
set company’s
goals, and establish
the business
portfolio
Strategic business
unit
(SBU)/Division
planning
Single SBU within
the firm
Medium to long-
term (3 to 5 years)
Set goals and
establish portfolio
of products and
markets for the
business unit
Functional
planning (e.g.
marketing
planning)
Product portfolio,
single product,
brand of market
Short-term to
medium term (1-3
years)
Develop marketing
plans for specific
products, brands
or markets
The Marketing Plan
- A marketing plan is a written document composed of an analysis of the current
marketing situation, opportunities, and threats for the firm, marketing objectives
and strategy specified in terms of the four Ps, action programs, and projected or pro
forma income (and other financial statements).
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