CHAPTER 2 Flashcards
refers to the policies and key decisions in the field of marketing adopted by management that have impact on company’s performance.
Marketing Strategy
focuses primarily on products, markets, and the relationships with customers.
Marketing Strategy
To design an effective marketing strategy, it is necessary to consider the strategic context of acompany including its mission statement, growth strategy, competitive strategy, strategic objectives, as well as organizational resources.
Firm Analysis
statement that provides information about company’s goals, major policies, values, and competitive advantage. based on avision which describes adesired outcome of the company’s performance in the future.
Mission statement
strategy aimed at winning larger market share. There are four ways in which acompany can develop its products and markets.
Growth strategy
focused on existing markets and the same products, which means that the company can use awide range of promotional activities or develop distribution network to increase sales
Market penetration
means that acompany enters new markets and offers the same products.
Market development strategy
introduces new products and sells them into current markets usually through existing channels, taking advantage of gained experience, and often of brand awareness and brand loyalty
product development strategy
ahigh risk strategy, since acompany enters new markets and sells new products, thus it cannot benefit from any experience
Diversification strategy
focused on gaining competitive advantage in the market
Competitive strategy
main effort is put on lowering the production and distribution cost, so that acompany can gain competitive advantage by charging lower prices.
overall cost leadership
means that it delivers something valuable to customers and charges ahigher price for added value.
differentiation strategy
means that acompany concentrates on asmall segment and it gains competitive advantage either through cost leadership or through differentiation.
focus strategy
specify what acompany expects to achieve as aresult of the implementation of its strategy. long-term and can be classified into anumber of categories, including financial objectives which focus on improving acompany’s profitability, sales and market share objectives aiming at growing market share and increasing sales, human resources objectives which concentrate on the selection and development of the workforce, and internal processes objectives putting stress on enhancing operational efficiency
Strategic objectives
used to accomplish company’s goals. They include market resources like products, brands, distribution channels; human resources which are the people within acompany; physical resources, such as buildings, vehicles, and equipment; and financial resources
Organizational resources
analysis of the marketing environment is considered with the identif ication of the circumstances outside the company which have an impact on its performance.
Market analysis .
distinguish those factors which are crucial, thus because of its complexity, it is reasonable to reduce the market analysis to two main categories: the macroenvironment and the competitive environment.
key objective of the marketing environment analysis
comprises factors outside the competitive environment that may influence the company’s performance and achievement of its objectives. may lead to new opportunities and threats and for this reason they should be carefully examined.
Macroenvironment
refers to the monitoring of population, its size, growth rate, age distribution, ethnic groups, as well as household patterns, and educational levels.
Demographic analysis
consists of those factors with which the company comes into closest contact and which have direct impact on its success.
Competitive environment
overall evaluation of acompany’s strengths, weaknesses, opportunities and threats, is to identify the key information from data gathered by the marketing audit.
SWOT analysis
starts with the definition of the market and identification of customer needs.
segmentation process
category includes descriptors of the customers who are buying services what enables to understand who the customers are.
Customer characteristics
variables are very commonly used descriptors of customers. In consumer service markets demographic segmentation refers to such factors as sex, age, family size,
Demographics and socio-economics
more developed form of segmentation and is concerned with people’s behavior and lifestyles. People differ in attitudes, personality types, interests, values, and these affect the services they purchase.
Psychographics
refers to dividing customers according to where they work or live. Dividing market into geographical units, such as countries, states or cities helps to identify local and regional trends.
Geography
This category includes descriptors of the customers’ behavior which enables to understand what and why customers buy
Customer responses
related to the reasons why customers buy products. However, people vary regarding their preferences and the benefits they seek from the same market offering.
Benefits
refers to the type and extent of usage patterns. Using this variable, customers are typically divided into heavy, medium, occasional and non-users of the service.
Usage
considers how customers respond to various types of promotional activities, such as advertising, sales promotion, exhibitions, and others.
Promotional response
means commitment to re-buy apreferred product or service in the future.
Loyalty
itself and consideration of how customers respond to various service offerings can also serve as abasis for segmentation.
Service
mass marketing there is no recognition of distinct segments in the market. Aservice company targets the whole market and develops one marketingmix strategy, focusing on what is common in the needs of customers.
Undifferentiated marketing
service company identifies several segments and designs separate marketing programs for them. By using adifferentiated approach, it is possible to increase customer satisfaction; thereby aservice company can build astronger position within each market segment.
Differentiated marketing
service company recognizes that there are number of segments in the market; however, it decides to target one specific segment or aniche.
Concentrated marketing
service company focuses on local customer groups, such as trading areas, neighborhoods, stores, and also on individuals.
Micromarketing
