THE FIRST CULTURE

Chapter 2

THE MARKETING PROCESS: STRATEGY AND PLANNING

1. Corporate strategy deals with the overall development of an organization’s business activities,
while marketing strategy focuses on the organization’s activities in relation to its markets.

2. Deliberate strategies are the result of planning.

3. Emergent strategies are developed over time as a result of the behavior and actions of the
organizations.

4. Marketing strategy focuses on the organization’s activities in relation to its markets. Deliberate
strategies are the result of planning.

5. Marketers cannot control all the information that consumers gather and process about products,
but nevertheless marketing organization must develop an effective integrated marketing
communications plan,

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6. The company mission statement is simply a statement of what an organization is aiming to

achieve through the conduct of its business. It can even be thought of as a statement of the
organization’s reason for existence.

7. The purpose of the mission statement is to provide the organization with focus and direction.

8. With the benefits of a clear mission statement, future growth strategies can rely on what are
regarded as distinctive competences.

9. A mission statement can offer guidelines to management when considering how the business
should develop and which directions.

10. Identifying distinctive competences enables the organization to focus on developing the
business in areas where they have experience.

11. Markets segmentation is the subdividing of a market into distinct subsets of customers, where
any subset may conceivably be selected as a target market to be reached with a distinct
marketing mix. (Kotler)

12. Market segmentation is based on the recognition of the diverse needs of potential buyers.
Different customer attitudes may be grouped into segments. A different marketing approach
is needed for each market segment.

13. Market segmentation is considered, and also an understanding of the organization’s internal
environment and its particular strengths and weaknesses.

14. This evaluation will identify weaknesses and strengths of current marketing campaigns and
processes which can then be modified for this product and for products in the future.

15. A marketing information system may be used for processing and analysis, while SWOT
analysis may be used to organize and present the results.

16. Market research and external databases provide information on the external environment,
while an audit of the organization’s marketing activities provides information on the internal
environment.

17. A marketing audit is simply a systematic analysis and evaluation of the organization’s
marketing position and performance.

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18. The strategic triangle (3C’s) is a framework by Ohmae establishes the competitive position of
the company in relation to its customers and competitors.

19. Market penetration involves selling more of the exist products in existing markets. Possible
options are persuading existing users to use more, persuading non-users to use, or attracting
consumers form competitors.

20. Market Development entails expanding into new markets with existing products. These may be
new markets geographically, new market segments or new uses for products.

21. Product Development approach requires the organization to develop modified versions of its
existing products which can appeal to existing markets. By tailoring the products more
specifically to the needs of some existing consumers and some new consumers, the organization
can strengthen its competitive position.

22. Diversification (new products. new markets) is a much more risky strategy because the
organization is moving into areas in which it has little or no experience.

23. Product differentiation: a feature of a particular product might appeal to one segment of the
market in such a way that the product is thought better than its rivals.

24. Environmental scanning means keeping one’s and ears open to what is going on generally in
the market place, especially with respect to competitors, and more widely in the technological,
social, economic and political environment.

25. An opportunity is simply any feature of the external environment which creates conditions
which are advantageous to the firm in relation to a particular objective or set of objectives.

26. A threat is any environmental development which will present problems and may hinder the
achievement of organizational objectives.

27. Strength can be thought of as a particular skill or distinctive competence which the organization
possesses and which will aid it in achieving its stated objectives.

28. Weakness is simply any aspect of the company which may hinder the achievement of specific
objectives.

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29. A competitive strategy requires the organization to decide whether to compete across the entire
market or only in certain segments (competitive scope) and whether to compete through low
costs and prices or through offering a differentiated product range (competitive advantage).

30. Cost leadership attempts to control the market through being the low cost producer.

31. Differentiation offers leadership or focus products which can be regarded as unique in areas
which are highly valued by the consumer, creating customer loyalty which protects the firm
from competition.

32. Focus/niching. Based on either costs or differentiation, aims to serve particularly attractive or
suitable segments or niches.

33. Government statistics in industry sectors can be used to evaluate past sales and base forecasts
on future sales.

34. Companies often arrive at sales forecasts in three stages.

1. Environmental forecast
2. Industry forecast
3. Company sales forecast