Chapter 2 Flashcards
What does marketing strategy identify?
-a firm’s target market
-a related marketing mix
-the basis on which the firm plans to build a sustainable competitive advantage
Sustainable competitive advantage:
an advantage over competition that is not easily copied and can be maintained over a long period of time
What are the macro strategies for developing customer value?
-customer excellence
-operational excellence
-product excellence
-locational excellence
Customer excellence
retaining loyal customers and providing outstanding customer services (ex: Disney or airlines)
Operational excellence:
efficient operations, excellent supply chain management and strong relationships with suppliers (ex: walmart)
Product excellence:
provide products with high perceived value and effective branding and positioning (ex: apple, google, microsoft, coke, etc.)
Locational excellence:
especially important for retailers and service providers (often said to be the most important thing in retailing)
There are ______ _______ of advantages
multiple sources
What is usually not enough to build a sustainable competitive advantage?
a single strategy (ex: low prices OR excellent services: Southwest airlines)
What is step 1 of the marketing plan?
the planning phase
Mission statement:
a broad description of a firm’s objectives and the scope of activities it plans to undertake
Planning phase step 1:
define the business mission
-mission statement
-what do we need to do to accomplish our goals and objectives?
Planning phase step 2:
Conduct a situational analysis
-SWOT analysis
SWOT analysis:
assessment of an organizations strengths, weaknesses, opportunities, and threats
-internal strengths
-internal weaknesses
-external oppurtunities
-external threats
What is the 2nd step of the marketing plan?
the implementation phase
Implementation phase step 1:
identifying and evaluating oppurtunities (STP): how firms choose which consumer group to pursue with its marketing efforts
-segmentation
-targeting
-positioning
Implementation phase step 2:
implement marketing mix and allocate resources-as a means to increase customer value (the 4 P’s)
Product and value creation:
successful products and services are those that customer perceives as valuable enough to purchase
Price and value capture:
price is what the customer is willing to pay for a product they perceive as good value (is it worth it?)
Place and value derlivery:
product must be readily accessible when and where the customer wants it
Promotion and value communication
it encompasses a variety of communication disciplines
What is the 3rd phase of the marketing plan?
the control phase
Control phase step 1:
evaluate performance using marketing metrics
-boston consulting group matrix
Metric
a measuring system that quantifies a trend, dynamic, or characteristic
-used to explain why things happened and project the future
