Ch 2 - Developing Marketing Strategies/Marketing Plan

Question 1

marketing strategy

Answer 1

identifies firm’s target market(s), a related marketing mix - the 4 Ps, and the bases upon which the firm plans to build a sustainable competitive advantage

Question 2

sustainable competitive advantage

Answer 2

something the firm can persistently do better than its competitors that is not easily copied and thus can be maintained over a long period of time

Question 3

customer excellence

Answer 3

involves a focus on retaining loyal customers and excellent customer service

Question 4

operational excellence

Answer 4

involves a focus on efficient operations and excellent supply chain management

Question 5

product excellence

Answer 5

involves a focus on achieving high-quality products and effective branding and internet presence

Question 6

planning phase

Answer 6

where marketing executives and other top managers define the mission and objectives of the business, and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm’s potential success

Question 7

implementation phase

Answer 7

where marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting and positioning. They then develop and implement the marketing mix by using the 4Ps

Question 8

control phase

Answer 8

part of strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions

Question 9

mission statement

Answer 9

broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? and What does it need to do to accomplish its goals and objectives?

Question 10

situation analysis (SWOT)

Answer 10

second step in marketing plan; uses SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats

Question 11

STP

Answer 11

processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits

Question 12

market segment

Answer 12

group of consumers who respond similarly to a firm’s marketing efforts

Question 13

marketing segmentation

Answer 13

process of dividing market into distinct groups of customers - where each individual group has similar needs, wants or characteristics - who therefore might appreciate products or services geared especially for them in similar ways

Question 14

target marketing/targeting

Answer 14

process of evaluating the attractiveness of various segments and then deciding which to pursue as a maket

Question 15

market positioning

Answer 15

involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products

Question 16

strategic business unit (SBU)

Answer 16

division of company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers

Question 17

product line

Answer 17

group of products that consumers may use together or perceive as similar in some way

Question 18

relative market share

Answer 18

measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Question 19

market growth rate

Answer 19

the annual rate of growth of the specific market in which the product competes

Question 20

market penetration strategy

Answer 20

growth strategy that employs existing marketing mix and focuses the firm’s efforts on existing customers

Question 21

market development strategy

Answer 21

growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international or segments not currently served by the firm

Question 22

product development strategy

Answer 22

growth strategy that offers new product or service to a firm’s current target market

Question 23

diversification

Answer 23

growth strategy whereby a firm introduces new product/service to a market segment that it doesn’t currently served

Question 24

downsizing

Answer 24

exiting markets, reducing product portfolios, or closing certain businesses or store or plant locations

Question 25

locational excellence

Answer 25

involves a focus on a good physical location and internet presence