Chapter 2 Flashcards
control phase
The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
customer excellence
Involves a focus on retaining loyal customers and excellent customer service.
diversification strategy
A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
downsizing
Exiting markets, reducing product portfolios, or closing certain businesses or store or plant locations.
implementation phase
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 four Ps.
locational excellence
Involves a focus on a good physical location and Internet presence.
market development strategy
A 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.
market growth rate
The annual rate of growth of the specific market in which the product competes.
market penetration strategy
A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.
market positioning
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.
market segment
A group of consumers who respond similarly to a firms’s marketing efforts.
market segmentation
The process of dividing the 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.
market strategy
Identifies a firm’s target market(s), a related marketing mix -the four Ps, and the bases upon which the firm plans to build a sustainable competitive advantage.
mission statement
A 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?
operational excellence
Involves a focus on efficient operations and excellent supply chain management.
planning phase
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 for success.
product development strategy
A growth strategy that offers a new product or service to a firm’s current target market.
product excellence
Involves a focus on achieving high-quality products and effective branding and positioning.
product line
A group of products that consumers may use together or perceive as similar in some way.
relative market share
A measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales archieved by the largest firm in the industry.
situation analysis (SWOT)
The second step in a marketing plan; uses a 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.
STP
The process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.
stratigic business unit (SBU)
A division of the 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.
sustainable competitive advantage
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.
