Ch. 2 Developing Marketing Strategies and a Marketing Plan

Question 0

Sustainable competitive advantage

Answer 0

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

Question 1

Marketing strategy

Answer 1

Identifies:

1) Firms target market(s)
2) Related marketing mix (4Ps)
3) Bases on which firm plans to build sustainable competitive advantage

Question 2

Customer excellence

Answer 2

Focuses on retaining loyal customers and excellent customer service

Question 3

Operational excellence

Answer 3

Achieved through efficient operations and excellent supply chain and human resource management

Question 4

Product excellence

Answer 4

Having products with high perceived value and effective branding and positioning

Question 5

Locational excellence

Answer 5

Having a good physical location and Internet presence

Question 6

Marketing plan

Answer 6

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

Question 7

Planning phase

Answer 7

Marketing executives with other top managers define the mission/vision of business

Question 8

Implementation phase

Answer 8

Marketing managers identify and evaluate different opportunities by engaging in process known as segmentation, targeting, and positioning (STP)

Question 9

Control phase

Answer 9

Evaluating the performance of marketing strategy using marketing metrics and taking necessary corrective actions

Question 10

Mission statement

Answer 10

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?

Question 11

Situation analysis

Answer 11

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)

Question 12

STP (segmentation, targeting, positioning)

Answer 12

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

Question 13

Market segment

Answer 13

Consists of consumers who respond similarly to firms marketing efforts

Question 14

Market segmentation

Answer 14

Process of dividing the market into groups of customers with different needs, wants, or characteristics

Question 15

Target marketing (or targeting)

Answer 15

Evaluates each segments attractiveness and decides which to pursue using a process

Question 16

Marketing positioning

Answer 16

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

Question 17

Metric

Answer 17

Measuring system that quantifies a trend, dynamic, or characteristic

Question 18

Strategic business unit (SBU) (or product line)

Answer 18

A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have different mission or obj

Question 19

Market share

Answer 19

Percentage of a market accounted for by specific entity, and is used to estb products strengths in particular market

Question 20

Relative market share

Answer 20

Provides managers with products relative strength, compared with that of the largest firm in the industry

Question 21

Market growth rate (or annual rate of growth)

Answer 21

Specific market in which the product competes

Question 22

Market penetration strategy

Answer 22

Employs existing marketing mix and focuses firms efforts on existing customer

Question 23

Market development strategy

Answer 23

Employs existing marketing offering to reach new market segments, whether domestic or international

Question 24

Product development strategy

Answer 24

Offers new product or service to a firms current target market

Question 25

Diversification strategy

Answer 25

Introduces a new product or service to market segment that currently is not served

Question 26

Related diversification

Answer 26

Current target market and/or marketing mix shares something in common with the new opportunity

Question 27

Unrelated diversification

Answer 27

New business lacks any common elements with present business

Don’t capitalize on either core strengths associated with markets or products