Chapter 2 Flashcards
What is a strategic marketing plan?
An organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies (ex: Abercrombie and young people)
What are market opportunities?
Areas where there are favourable demand trends, where the company believes customer needs and opportunities are not being satisfied
What is a competitive advantage?
Something special a firm does or has that gives it an edge over competitors
What is a target market?
The focus of the firm’s marketing effort, goals and objectives
What is market segmentation?
Dividing up the market into distinct groups that:
- Have common needs
- Respond similarly to a marketing action
What are the bases for segmentation?
- Geographic
- Demographic
- Psychographic (lifestyle/personality)
- Behaviouristic (loyalty)
- Benefit (attributes sought in a product)
What is undifferentiated marketing?
Ignoring segment differences and offering one product/service to the entire market
What is differentiated marketing?
Marketing in a number of segments and developing separate strategies for each
What is concentrated marketing?
When the firm selects one segment and attempts to capture a large share of this market
What is positioning?
Fitting the product or service to one or more segments of the broad market in a way to set it apart from competition
What are the 6 positioning strategies?
- Product Attributes/Benefits
- Price/Quality
- Use/Application
- Product Class
- Product User
- Competitor
* 7. Cultural Symbols*
What are the 6 steps of developing a positioning platform?
- Identifying competitors
- Assessing consumers’ perceptions of competitors
- Determining competitors positions
- Analyzing the consumers’ preferences
- Making the positioning decision
- Monitoring the position
What is repositioning?
Usually occurs because of declining or stagnant sales or anticipated opportunities in other market positions
What is product symbolism?
What a product or brand means to consumers and what they experience in purchasing and using it
What is brand equity?
An intangible asset of added value or goodwill that results from the favourable image of a company, brand or trademark
What is the price variable?
What the consumer must give up to purchase a product/service (ie. time, money, activity, behaviour)
What is a marketing channel?
Interdependent organizations that make a product or service available for use or consumption
What is a direct channel?
Firms that use direct-response advertising or telemarketing to sell products (ex: Avon)
What is an indirect channel?
Wholesalers and retailers
What is a promotional push strategy?
Programs designed to persuade the trade to stock, merchandise and promote a manufacturers products
What is a promotional pull strategy?
Spending money on advertising and sales promotion efforts directed toward the ultimate consumer
Who in an agency interacts with personnel from all disciplines?
Account Director
What group of individuals conceive ideas for ads and write the advertising message?
Copywriter
An ad agency wants to develop employees expertise in servicing a variety of accounts should use what structure?
Departmental
