Chapter 2

Question 1

What does marketing strategy identify?

Answer 1

-a firm’s target market
-a related marketing mix
-the basis on which the firm plans to build a sustainable competitive advantage

Question 2

Sustainable competitive advantage:

Answer 2

an advantage over competition that is not easily copied and can be maintained over a long period of time

Question 3

What are the macro strategies for developing customer value?

Answer 3

-customer excellence
-operational excellence
-product excellence
-locational excellence

Question 4

Customer excellence

Answer 4

retaining loyal customers and providing outstanding customer services (ex: Disney or airlines)

Question 5

Operational excellence:

Answer 5

efficient operations, excellent supply chain management and strong relationships with suppliers (ex: walmart)

Question 6

Product excellence:

Answer 6

provide products with high perceived value and effective branding and positioning (ex: apple, google, microsoft, coke, etc.)

Question 7

Locational excellence:

Answer 7

especially important for retailers and service providers (often said to be the most important thing in retailing)

Question 8

There are ______ _______ of advantages

Answer 8

multiple sources

Question 9

What is usually not enough to build a sustainable competitive advantage?

Answer 9

a single strategy (ex: low prices OR excellent services: Southwest airlines)

Question 10

What is step 1 of the marketing plan?

Answer 10

the planning phase

Question 11

Mission statement:

Answer 11

a broad description of a firm’s objectives and the scope of activities it plans to undertake

Question 12

Planning phase step 1:

Answer 12

define the business mission
-mission statement
-what do we need to do to accomplish our goals and objectives?

Question 13

Planning phase step 2:

Answer 13

Conduct a situational analysis
-SWOT analysis

Question 14

SWOT analysis:

Answer 14

assessment of an organizations strengths, weaknesses, opportunities, and threats
-internal strengths
-internal weaknesses
-external oppurtunities
-external threats

Question 15

What is the 2nd step of the marketing plan?

Answer 15

the implementation phase

Question 16

Implementation phase step 1:

Answer 16

identifying and evaluating oppurtunities (STP): how firms choose which consumer group to pursue with its marketing efforts
-segmentation
-targeting
-positioning

Question 17

Implementation phase step 2:

Answer 17

implement marketing mix and allocate resources-as a means to increase customer value (the 4 P’s)

Question 18

Product and value creation:

Answer 18

successful products and services are those that customer perceives as valuable enough to purchase

Question 19

Price and value capture:

Answer 19

price is what the customer is willing to pay for a product they perceive as good value (is it worth it?)

Question 20

Place and value derlivery:

Answer 20

product must be readily accessible when and where the customer wants it

Question 21

Promotion and value communication

Answer 21

it encompasses a variety of communication disciplines

Question 22

What is the 3rd phase of the marketing plan?

Answer 22

the control phase

Question 23

Control phase step 1:

Answer 23

evaluate performance using marketing metrics
-boston consulting group matrix

Question 24

Metric

Answer 24

a measuring system that quantifies a trend, dynamic, or characteristic
-used to explain why things happened and project the future

Question 25

Who is accountable for performance (control phase)?

Answer 25

-performance objectives, marketing analytics, and metrics
-financial performance metrics
-portfolio analysis

Question 26

Portfolio analysis

Answer 26

management evaluates the firm’s various products and business and allocate resources according to which products are expected to be the most profitable for the firm in the future

Question 27

Boston Consulting matrix:

Answer 27

-a tool which allows an organization to classify and display strategic business units
-Stars (high growth, market share)
-Question marks (low market share, how can we shift to bigger one?)
-Cash cows (low growth, not heavily invested, bringing in revenue)
-Dogs (not growing, low market share)

Question 28

Market growth:

Answer 28

change of the item

Question 29

Market share:

Answer 29

consumption of the item

Question 30

Marketing plan:

Answer 30

a written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives, and strategy specified in terms of the 4 P’s, action programs, and projected or pro forma income statements

Question 31

Growth strategies model:

Answer 31

-Market penetration (current product already in the market)
-Product development (current platform, new product)
-Market development
(current product in a new market)
-Diversification
(unrelated new product–very risky)