Ch. 2 Developing Marketing Strategies and a Marketing Plan Flashcards
Sustainable competitive advantage
An advantage over competition that’s not easily copied and can be maintained over a long period of time
4 macro strategies: Customer excellence Operational excellence Product excellence Locational excellence
Marketing strategy
Identifies:
1) Firms target market(s)
2) Related marketing mix (4Ps)
3) Bases on which firm plans to build sustainable competitive advantage
Customer excellence
Focuses on retaining loyal customers and excellent customer service
Operational excellence
Achieved through efficient operations and excellent supply chain and human resource management
Product excellence
Having products with high perceived value and effective branding and positioning
Locational excellence
Having a good physical location and Internet presence
Marketing plan
Written document composed of an analysis of current marketing situation, opportunities and threats for firm, marketing obj and strategy specified in terms of 4Ps, action programs, and projected or pro-forma income statements
Planning phase
Marketing executives with other top managers define the mission/vision of business
Implementation phase
Marketing managers identify and evaluate different opportunities by engaging in process known as segmentation, targeting, and positioning (STP)
Control phase
Evaluating the performance of marketing strategy using marketing metrics and taking necessary corrective actions
Mission statement
Broad description of firms obj and scope activities it plans to undertake
Answer two questions:
What type of business are we?
What do we need to do to accomplish our goals and obj?
Situation analysis
Use SWOT analysis
Internal environment > Strengths and Weaknesses
External environment > Opportunities and Threats
Should asses opportunities and uncertainties of marketplace due to changes in Cultural, Demographic, Social, Technological, Economic, Political forces (CDSTEP)
STP (segmentation, targeting, positioning)
Identify and evaluate opportunities for increasing sales and profits
Firm divides marketplace into subgroups or segments, determines which segment to pursue or target, and decides how it should position products/services to best meet needs of chosen targets
Market segment
Consists of consumers who respond similarly to firms marketing efforts
Market segmentation
Process of dividing the market into groups of customers with different needs, wants, or characteristics
Target marketing (or targeting)
Evaluates each segments attractiveness and decides which to pursue using a process
Marketing positioning
Defining marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
Metric
Measuring system that quantifies a trend, dynamic, or characteristic
Strategic business unit (SBU) (or product line)
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have different mission or obj
Market share
Percentage of a market accounted for by specific entity, and is used to estb products strengths in particular market
Relative market share
Provides managers with products relative strength, compared with that of the largest firm in the industry
Market growth rate (or annual rate of growth)
Specific market in which the product competes
Market penetration strategy
Employs existing marketing mix and focuses firms efforts on existing customer
Market development strategy
Employs existing marketing offering to reach new market segments, whether domestic or international
Product development strategy
Offers new product or service to a firms current target market
Diversification strategy
Introduces a new product or service to market segment that currently is not served
Related diversification
Current target market and/or marketing mix shares something in common with the new opportunity
Unrelated diversification
New business lacks any common elements with present business
Don’t capitalize on either core strengths associated with markets or products
