Important Defination of Strategic Marketing

Topics: Strategic management, Marketing, Management Pages: 5 (839 words) Published: April 2, 2013
Important definition of Strategic Marketing
Acquisitions involve one company having a controlling interest in another one.

An alliance is a longer-term partnership between two or more organizations. Alliance can be relatively loose and tactical through to strategy. A strategic alliance involves a reciprocal commitment by the various parties to longer-term collaboration which involves the mutual deployment of resources.

Benchmarking involves some comparison of performance and of some underlying capability- in order to achieve learning and change. Customer benchmarking entails comparison of customer needs against supplier delivery. Competitive benchmarking involves understanding differences between delivery of value to customer or cost between at least two players.

World-class benchmarking:
World-class benchmarking involves comparison with the best in the world either within or outside your industry.

Internal benchmarking:
Internal benchmarking looks at the learning from comparison of different operations within your ownership.

Buyer power:
This is the degree of pressure which buyers have over companies in terms of price, discounts, delivery times, quality levels and penalties for poor quality. Buyer power will vary by market, segment, distribution channel and customer. It will also vary according to whether it is a primary supply or a secondary supply.

A breakthrough is a major shift in a company’s competitive position, organizational capability and financial performance.

This is the overall ability of a company to compete.

Competitive advantage:
This is about either superior value to your target customers or similar value at lower cost (relative to your competitors).

Core competence:
A core competence is a particular skill area which a company has, which will enable it to add value to its customers and to manage its cost base.

Competitive strategy:
The scope of what business you are in the relative focus on differentiation, focus on cost leadership strategy, and the resources and competencies used to deliver that generic strategy.

Competitive positioning:
This is a distinctive way of competing.

Competitive rivalry:
The extent of competition between existing rivals with in an industry.

Cost drivers:
The direct or indirect factors both within or outside the business, now and in the future, which generates cash out flows.

Entry barriers:
Entry barriers are the perceived and real costs, difficulty and risks of entering a particular market. Exit barriers:
Exit barriers are the perceived and real costs, difficulty and risks of exiting a particular market.

Cost leadership;
This is a strategy which aims to achieve the lowest unit costs either within an industry or within a particular strategic group.

Cost of capital:
This is the level of financial return required to achieve minimal satisfaction of suppliers of capital.

Corporate culture:
This is the set of characteristic of values, attitudes and behaviors which are characteristics of an organization or of a part of it.

Mergers involve two businesses or groups coming together on a more-or-less equal footing.

This is the unbundling of business or of a group of businesses into standalone units.

This is the generic strategy aimed at generating either more real or perceived value to its target customers than its competitors.

Gap analysis:
This is the difference between a company’s goals and its likely performance given current strategies.

This is a shift into either new products, new markets, new technologics, new geographic domains or into new competencies. Divestment:
This is a decision to sell, close or automatically downscale an operation.

Corporate strategy:
This is the scope of existing businesses which a group is in, the intended future businesses and the way in which...
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