CH2 Flashcards
What is a marketing strategy?
A marketing strategy identifies a firm’s target market(s), a related marketing mix (its four Ps), and the method for building a sustainable competitive advantage.
What is a sustainable competitive advantage?
A sustainable competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time.
What are the four macro strategies that firms can use to build sustainable competitive advantages?
The four macro strategies are: 1) Customer excellence, 2) Operational excellence, 3) Product excellence, and 4) Locational excellence.
What is customer excellence?
Customer excellence focuses on retaining loyal customers and providing excellent customer service.
How do firms achieve customer excellence?
Firms achieve customer excellence by retaining loyal customers through strategies such as strong branding, unique merchandise, superior customer service, and loyalty programs.
What is operational excellence?
Operational excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers.
What is product excellence?
Product excellence focuses on providing high-quality products with effective branding and positioning that deliver high perceived value.
What is locational excellence?
Locational excellence involves having a strong physical presence or online presence that is difficult for competitors to replicate.
Why are multiple strategies important for a sustainable competitive advantage?
Multiple strategies are necessary because relying on a single strategy (such as low prices or excellent service) may not be sufficient. A combination of strategies builds a stronger “wall” around a firm’s market position.
What are the key components of a marketing strategy?
The key components of a marketing strategy are: 1) Target market, 2) Marketing mix (the four Ps), and 3) Method of obtaining a sustainable competitive advantage.
What is a marketing plan?
A marketing plan is a written document that includes an analysis of the current marketing situation, opportunities and threats, marketing objectives, strategy using the four Ps, action programs, and financial projections.
What are the three major phases of a marketing plan?
The three major phases are: 1) Planning, 2) Implementation, and 3) Control.
What are the steps in the planning phase of the marketing plan?
In the planning phase, marketing executives define the mission and objectives (Step 1) and evaluate the situation (Step 2) by assessing how various factors impact the firm’s potential for success.
What happens in the implementation phase of the marketing plan?
In the implementation phase, marketing managers engage in segmentation, targeting, and positioning (Step 3) and then implement the marketing mix using the four Ps (Step 4).
What occurs in the control phase of the marketing plan?
In the control phase, managers evaluate the performance of the marketing strategy and take any necessary corrective actions (Step 5).
What are the key components of the first step (Step 1) in the marketing plan process?
Step 1 involves defining the business mission and objectives, answering questions like: What type of business are we? What are our objectives? And how do we achieve these objectives?
What is a mission statement?
A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake, answering questions about what type of business it is and what it needs to do to accomplish its goals.
What is a situation analysis in marketing?
A situation analysis is the second step in a marketing plan, where a firm evaluates both its internal environment (Strengths and Weaknesses) and external environment (Opportunities and Threats) using a SWOT analysis.
What is SWOT analysis?
SWOT analysis is a method of conducting a situation analysis within a marketing plan that examines a firm’s internal strengths and weaknesses, and its external opportunities and threats.
What is the purpose of conducting a situation analysis in marketing?
The purpose is to assess the current market situation, identify potential opportunities and threats, and allocate appropriate resources to respond to changes in the environment, competition, and customer needs.
What are the internal factors evaluated in a SWOT analysis?
The internal factors are Strengths and Weaknesses, which refer to the firm’s positive attributes (Strengths) and negative attributes (Weaknesses) that impact its performance.
What are the external factors evaluated in a SWOT analysis?
The external factors are Opportunities and Threats, which refer to positive aspects of the external environment (Opportunities) and negative aspects (Threats) that may affect the firm.
What is the STP process in marketing?
The STP process stands for Segmentation, Targeting, and Positioning. It helps a firm divide the market into subgroups (segmentation), evaluate which subgroup to target (targeting), and determine how to position their product to appeal to the target group (positioning).
What is market segmentation?
Market segmentation is the process of dividing a market into groups of customers with different needs, wants, or characteristics, who might appreciate products or services tailored for them.
