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planning

process of anticipating future events and conditions and of determining the best way to achieve organization objectives

marketing planning

implementing planning actives devoted to achieving marketing objectives- establishes the basis for any marketing strategy. ( product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns)

strategic planning

process of determine an organizations primary objectives and adopting courses of action that will achieve these objectives

tactical planning

guides the implementation of actives specified in the strategic plan. address shorter term actions that focus on current and near future activities that a firm must complete to implement larger strategies.

top management

in charge of strategic planning such as organization wide objectives, long term plans, total budget

middle management

in charge of tactical planning such as quarterly and semiannual plans, divisional policies and procedures

supervisory management

in charge of operational planning such as daily and weekly plans, unit budgets, etc.

mission

essential purpose that differentiates the company from others. specifies the organizations overall goals and operational scope and provides general guidelines for future management actions.

marketing strategy

overall, companywide program for selecting a particular target market and then satisfying consumers in that market through careful blending of the elements of the marketing mix- product, distribution, promotion, price.

sustainable competitive advantage

when other companies cannot provide the same value to their customers that the firm does

porters five forces

1. potential new entrants
2. bargaining power of buyers
3. bargaining power of suppliers
4. threat of substitute products
5. rivalry among competitors

first mover strategy

attempting to capture the greatest market share and develop long term relationships by being the first to enter the market with a good or service. ex. mcdonalds being open 24/7

second mover strategy

observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace.

SWOT analysis

helps planners compare internal organizational strengths and weaknesses with external opportunities and threats

core competencies

capabilities that customers value and competitors find difficult to duplicate

leverage

matching an internal strength with an external opportunity produces a situation

strategic window

limited periods during which the key requirements of a market and the particular competencies of a firm best fit together. shows planners a way to relate potential opportunities to company capabilities.

target market

group of people toward whom the firm aims its marketing efforts and ultimately its merchandise

marketing mix

blend of four strategic elements to fit the needs and preferences of a specific target market. should be an ever-changing combination of variables to achieve success

product strategy

includes decisions about customer services, package design, brand names, trademarks, patents, warranties, the life cycle of a product, etc.

rule of three

the three strongest most efficient companies dominate between 70 and 90 percent of the market

portfolio analysis

evaluating the companies products and visions to determine the strongest and weakest

strategic business units

key units within diversified firms. have their own managers, resources, objectives, and competitors

categories

strategic business unites focus the attention of company managers so that they respond effectively to changing consumer demand within limited markets

market share

percentage of a market that a firm currently controls. (or company sales divided by a total market sales)

strategic planning

to survive in a challenging environment that includes soaring fuel costs, several airlines have decided to merge

tactic planning

cutting the number of flights and charging passengers extra for checked baggage

final step of marketing planning process

managers monitor performance to ensure that objectives are achieved

bargaining power of buyers

can depress prices

bargaining power of suppliers

can increase cost or reduce selection

pros of first mover strategy

capturing the greatest market share and developing long term relationships with customers.

disadvantages of first mover strategy

possibility that companies that follow can learn from mistakes by first movers.

product, price, promotion, place

four strategic elements of the marketing mix

marketing environment

competitive, political legal, economic, technological, and social cultural factors

bcg matrix

stars, cash cows, question marks and dogs

stars

products with high market shares in high growth markets

cash cows

command high market shares in low growth markets

question marks

achieve low market shares in high growth markets

dogs

manage only low market shares in low growth markets

steps in marketing planning

define the organizations mission and objectives, assess organizational resources and evaluate environmental risks and opportunities, formulate implement and monitor a marketing strategy

porters generic strategies

cost leadership:
-most efficient producer
-principal reason customers buy is price
-generally implies ability to set price

competitive advantage

set of unique features of a company its products that are perceived by the target market significant and superior to the competition

build

give up short term profits and use its financial resources to invest and improve (problem child)

hold

preserve market share to take advantage of the cash flow (cash cow)

harvest

increase the short term cash return without long term concern (all but Stars)

divest

get rid of subs with low shares of low growth markets (Problem child, dog)

operational planning

shorter decision making such as less than a year, monthly, weekly or daily. super visional management is in charge of this. in charge of budget units and departmental rules and procedures

environmental scanning

collection and interpretation of information about external forces, events, and relationships that may affect the future of the organization or the implementation of the marketing plan

value chain

includes primary and support actives such as inbound logistics, operations, outbound logistics, marketing and sales, service, procurement, technology development, human resource development and infrastructure

primary activities

( on bottom) inbound logistics, operations, outbound logistics, marketing and sales, service

support activities

( on top) procurement, technology development, human resource envelopment, infrastructure

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