Chapter 2 Flashcards
What is marketing strategy?
1.Marketing strategy identifies a firm’s target markets 2. identifies a related marketing mix (four P’s) 3. identifies the bases on which the firm plans to build a sustainable competitive advantage
What is a sustainable competitive advantage?
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 is key to long-term financial performance?
Establishing a sustainable competitive advantage
What are the four macro strategies and what do they focus on?
- Customer excellence, operational excellence, product excellence, locational excellence
- Focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages
What is customer excellence?
Focuses on retaining loyal customers and excellent customer service.
How is operational excellence achieved?
Achieved through efficient operations, excellent supply chain management, strong relationships with suppliers, and excellent human resource management
What is product excellence?
Having products with higher perceived value and effective branding and positioning
What is locational excellence?
Having a good physical location and internet presence
What does loyalty mean in business?
It means that customers are reluctant to patronize competing firms
What is key to modern customer retention programs?
Viewing customers with a lifetime value perspective
What do loyalty programs do? Based on?
Loyalty programs enable firms to identify members through a loyalty card or membership program based on the information provided when customers make a purchase.
How do firms make customer service part of the organizational culture?
By instilling good customer service into their employees over a long period of time
Marketers strive for efficient operations to…? This ensures?
Get their customers the merchandise they want, when they want it, in the required quantities, and at a delivered cost lower than that of their competitors. This ensures good value to their customers, earn profitability for themselves, and satisfy their customers’ needs.
How do firms achieve efficiencies?
By developing a sophisticated distribution system, information system, and as well as strong relationship with suppliers/vendors.
What is a marketing plan?
A marketing plan is a comprehensive written document that includes an analysis of the current marketing situation, opportunities, and threats for a firm. It outlines marketing objectives and strategies, often specified in terms of the four Ps, action programs, and projected or pro forma income statements.
