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Chapter 2

MKTG 300 Chapter Notes - Chapter 2: Customer Engagement, Starbucks, Swot Analysis


Department
Marketing
Course Code
MKTG 300
Professor
O'' Neal Carlton
Chapter
2

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Marketing 300: Chapter 2 Notes
Abbreviations: CR - Customer relationships; - change; comp - company; mktg - marketing
?
Dog
s
Cas
h
Star
H
H
L
Quality of
Market
BCG
Market
Penetrati
on
Market
Developm
ent
Diversific
ation
Product
Developm
ent
Existin
g
Marke
New
Mark
ets
New
Mission Statement  company goals and objectives
Portfolio Analysis  management evaluates the products and key businesses that make up the
company (SBUs)
Evaluate on attractiveness of SBU’s market & strength of SBU’s position in the
industry
Strategic Business Units (SBUs)  can be a division, product line, or a
single product/brand
Growth-Share Matrix  portfolio-planning method; evaluates a comp.’s
SBUs in terms of market growth rate & relative market share
Must decided how much to invest in each product or
business (SBU) & whether to build, hold, harvest, or divest/phase out
Stars need heavy investments to finance their rapid growth which will
eventually slow down  cash cows (strong position, great market)
Cash Cows - established & successful (less investment) & produce
$$$$ to support other SBUs - slow growth market w/ a strong position
?s require $$$ to hold their share - not great position & company has to
see which ? should be invested in to become a star  cow
Dogs may generate enough cash to maintain themselves but don’t promise to be large sources of
cash - when market slows down, cash cows become dogs
Invests funds from cows to support promising stars & ? in faster-growing markets
Product/market Expansion Grid  portfolio-planning tool for identifying
company growth opportunities thru market penetration, market
development, product development, or diversification
Market Penetration comp growth by  sales of current products to
current market seg w/o ing the product (ex: more stores, food options,
open longer)
Market Development  comp growth by identifying & developing new
market segments for current products (ex: expanding in non-US
markets)
Product Development  comp growth by offering modified or new
products to current market segments (ex: new Starbucks refreshers)
Diversification growth thru starting or acquiring businesses outside current products & markets
Customer Equity  total combined CL↑ of all company’s customers (future value of customer base)
Value Chain  series of internal dept. that carry out value-creating activities to design, produce,
market, deliver, & support a firm’s products
Value Delivery Network  network made up of the comp, its suppliers, its distributors, & customers
who partner with each other to improve the performance of the entire system
Market Segmentation  dividing a market into distinct groups of buyers who have different needs,
characteristics, or behaviors, & who might require separate products or mktg programs
Market Segment group of consumers who respond in similar ways to a given set of mktg efforts
Market Targeting  evaluating each market segment’s attractiveness & selecting 1 or 1+ to enter
Positioning  arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers
Differentiation actually differentiating the market offering to create superior customer value
find more resources at oneclass.com
find more resources at oneclass.com
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