Company growth by identifying and developing new market segments for current company products

developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities 

The organization's purpose, what it wants to accomplish in the larger environment

- The collection of business and products that make up the company - Company must analyze its current portfolio and shape its future one - Example: ESPN has a cable channel, radio, .com, The magazine, sports-themed restaurants

management evaluates the products and businesses that make up a company SBU (strategic business unit) is key businesses that make up the company

A portfolio planning method that evaluates a company's SBUs in terms of its market growth rate and relative market share

Growth-Share Matrix Defines 4 types of SBUs

1. Stars: High-growth, high-share businesses or products. They will turn into cash cows. 2. Cash Cows: Low-growth, high-share businesses or products. They produce a lot of cash for the company. 3. Question Marks: Low-share business units in high-growth markets. They require a lot of cash to hold their position. 4. Dogs: Low-growth, low-share businesses and products.

Product/Market Expansion Grid

This is a tool used for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Marketing strategy to increase sales of current products in current markets . There is no change in either the product line or market served

Company growth by identifying and developing new market segments for current company products

Product/Market Expansion Grid

-Companies can grow by doing a better job of penetrating current markets with current products

Company growth by offering modified or new products to current market segments

Strategy of developing new products and selling them in new markets

The series of internal departments that carry out value-creating activities to design , produce, market, deliver, and support a firm's products.

the network made up of the company, suppliers, distributers, and, ultimately, customers who partner with each other to improve the performance of the entire system

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies.

a distinct group of customers within a larger market who are similar to one another in some way but differ from the larger market

Evaluating each market segment's attractiveness and selecting one or more segments to enter

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Actually differentiating the company's market offering so that it gives consumers more value

The four key elements of marketing strategy: product, price, distribution, and customer communication

A planning exercise in which managers identify internal organizational strengths (S) and weaknesses (W) and external environmental opportunities (O) and threats (T)

Turning marketing plans into actions to accomplish objectives

Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved. 1. management sets specific marketing goals; 2. measures its performance; 3. evaluates the causes of any differences between expected and actual performance; 4. takes corrective action to close the gaps between goals and performance

Return on Marketing Investment (ROI)

Net Return from a marketing investment divided by the costs of the marketing investment, Marketing ROI provides a measurement of the profits generated by investments in marketing activities
net return / costs

Chapter 2 Vocabulary

Strategic Planning - The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.

Mission Statement - A statement of the organization's purpose - what it hopes to accomplish in the larger environment.

Business Portfolio - The collection of businesses and products that make up the company

Portfolio analysis - The process by which management evaluates the products and businesses  making up the company

Growth-Share Matrix - A portfolio planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share.  SBU's are classified as stars, cash cows, question marks, or dogs.

Product/Market expansion grid - A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Market Penetration - A strategy for company growth by increasing sales of current products to current market segments without changing the products.

Market development -  A strategy for company growth by identifying and developing new market segments for current company products.

Product development - A strategy for company growth by offering modified or new products to current market gainers.

Diversification - A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.

Downsizing - Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the companies overall strategy.

Value Chain - The series of departments that carry out value creating activities to design, produce, market, deliver,and support a firm's products.

Value delivery network - The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system.

Marketing Strategy - The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.

Marketing Segmentation - Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs.

Market segment - A group of consumers who respond in a similar way to a given set of products or marketing efforts.

Market targeting - The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Positioning - Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers.

Differentiation - Actually differentiating the market offering to create superior customer control.

Marketing mix - The set of controllable tactical marketing tools - product, place, price, and promotion - that the firm blends to produce the response it wants in the target market

SWOT analysis - An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

Marketing implementation -  The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.

Marketing control -  The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.

Marketing audit - A comprehensive, systematic, independent, and periodic examination of a company's environment objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company's marketing performance.

Return on Marketing Investment - The net return from a marketing investment divided by the costs of the marketing investment.

Is company growth by increasing sales of current products to current market segments without changing the product?

How does product development achieve company growth?

Are high growth high

What is marketing strategy development?