Ch 2 Flashcards
Developing Marketing Strategies and a Marketing Plan
What is a marketing strategy?
- a firm’s target market (s)
- a related marketing mix –the four P’s and
- the bases upon which the firm plans to build a sustainable competitive advantage
Developing Customer Value
- customer excellence
- operational excellence
- product excellence
- locational excellence
Developing a Marketing Plan
PLANNING PHASE
Step 1: Business Mission and Objectives
Step 2: Situational Analysis (SWOT)
IMPLEMENTATION PHASE
Step 3: Identify Opportunities (STP)
Step 4: Implement Marketing mIX (4 P’s)
CONTROL PHASE
Step 5: Evaluate Performance using Marketing Metrics (Firms must determine: Who is accountable for performance)
Portfolio AnalysisBoston consulting Group Matrix (BCG)
Firms must determine:
- performance metrics and objectives (compare sales, profits over time)
- financial performance metrics (revenue, sales, profits)
Growth Strategies
all growth strategies involve one or a combination of the four factors : market penetration, product development, market development, diversification
Sustainable competitive advantage
advantage over the competition that is not easily copied and thus can be maintained over a long period of time
Customer excellence
focuses on retaining loyal customers and excellent customer service
Operational excellence
achieved through efficient operations and excellent supply chain and human resources management
Product excellence
having products with high perceived value and effective branding and positioning
- clear, distinctive brand image
Locational excellence
having a good physical location and internet presence
STP
segmentation, targeting and positioning
Market segmentation
process of dividing the market into distinct groups of customers where each individual group has similar needs, wants or characteristics
targeting
evaluates each segment;s attractiveness and decides which to pursue
Market positioning
process of defining the marketing mix variables so that the target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products
Market penetration
employs existing marketing mix and focuses the firm’s efforts on existing customers
- Encourages customers to buy more often or buy more merchandise on each visit
- Requires greater marketing efforts
Market development
employs the existing marketing offering to reach new market segments
Product development
offers new product/service to firm’s current target market
Diversification
new product/service to a market segment that is currently not served
- Can be related or unrelated
Related diversification opportunity
the current target market/marketing mix shares something in common with the new opportunity
Unrelated diversification
lacks any common elements with the present business
