Chapter 2 Flashcards
Marketing Strategy
Identifies a firm’s target markets, a related marketing mix - the 4 Ps, and the bases upon which the firm plans to build a sustainable competitive advantage
Sustainable Competitive Advantage
Something the firm can persistently do better than its competitors that is not easily computed and thus can be maintained over a long period of time
Customer Excellence
Involves a focus on retaining loyal customers and excellent customer service
Operational Excellence
Involves a focus on efficient operations and excellent supply chain management
Product Excellence
Involves a focus on achievement high-quality products and effective branding and positioning
Locational Excellence
Involves a focus on a good physical location and Internet presence
Planning Phase
- define mission/objectives of business
- evaluate the situation by assessing how players (internal + external) affect the firms potential success
Marketing Plan Phases
1) Planning Phase
2) Implementation Phase
3) Control Phase
Implementation Phase
- identity/evaluate different opportunities by ending in segmentation, targeting and positioning
- develop marketing mix by using 4 Ps
Control Phase
-evaluate performance of marketing strategy and use corrective actions
Mission Statement
A broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer 2 main questions:
1) What type of business is it?
2) What does it need to do to accomplish its goals and objectives?
Situation Analysis (SWOT)
The 2nd step in a marketing plan; uses SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats
STP
The processes of segmentation, targeting, positioning that firms use to identify and evaluate opportunities for increasing sales and profits
Market Segment
A group of consumers who respond similarly to a firm’s marketing efforts
Market Segmentation
The process of dividing the market into distinct groups of customers - where each individual group has similar needs, wants or characteristics - who therefore might appreciate products or services geared especially for them in similar ways
Target marketing/targeting
The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
Market positioning
Involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products
Strategic Business Unit (SBU)
A division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers
Product Line
A group of products that consumers may use together or perceive as similar in some way
Relative Market Share
A measure of the product’s strength in a particular market
= the sales of the focal product / by the sales achieved by the largest firm in the industry
Market growth rate
The annual rate of growth of the specific market in which the product competes
Stars
- high growth markets
- high market share products
Cash Cows
- low-growth markets
- high market share products
Question Marks
- high growth markets
- low market shares
Dogs
- low growth markets
- low market shares
Market Penetration Strategy
A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers
Market Development Strategy
A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international or segments not currently served by the firm
Product Development Strategy
A growth strategy that offers a new product or service to a firm’s current target market
Diversification Strategy
A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve
Downsizing
Exiting markets, reducing product portfolios, or closing certain businesses or store or plant locations
