chapter 2: developing market strategies + a marketing plan

Question 1

what is a marketing strategy?

Answer 1

-the bases upon which the firm plans to build a sustainable advantage
-a firm’s target markets

Question 2

what is sustainable competitive advantage?

Answer 2

-strong brand
-innovative capabilities
-loyal customers
-extensive distribution network

Question 3

how to develop customer value

Answer 3

customer excellence (retain loyal customers and provide customer service)

operational excellence: achieved through efficient operations, excellent supply chain management, vendor relationships

product excellence: high perceived value

locational excellence: looks for sites with maximum market

Question 4

phases in developing a marketing plan

Answer 4

planning phase: define mission and objectives

implementation phase: marketing managers identify, evaluate different opportunities, segmentation, and positioning (STP)

control phase: evaluating performance of marketing strategy

Question 5

the four steps in developing a marketing plan

Answer 5

step one
mission statement: what type of business is it, and what must it do to accomplish its goals?

step two
situational analysis using SWOT analysis (strengths, weaknesses, opportunities, threats)

step three: STP
market segment: group of consumers who respond similarly to marketing efforts

market segmentation: process of dividing market into distinct groups of customers

targeting: evaluating the attractiveness of various segments then deciding which to pursue
positioning: defining the marketing mix variables so customers have a clear, distinct, understanding of the process

step four: implement the product, price, promotion, place

step five
evaluate strategy results by using marketing metrics

Question 6

define portfolio analysis

Answer 6

portfolio: firm’s various products and businesses

analysis performed at the strategic business unit level (division of company that markets to specific customers for specific products or at the product line level (groups of products that consumers may use/percieve together)

Question 7

what is a relative market share

Answer 7

measure of the products strength in a particular market, defined as the sales of the main interest product divided by he sales achieved by the largest firm in the industry

Question 8

market penetration strategy

Answer 8

-EXISTING marketing mix + existing customers
-requires greater marketing efforts

Question 9

market development strategy

Answer 9

a growth strategy that employs the EXISTING marketing offering to reach NEW market segments

Question 10

product development strategy

Answer 10

offers a NEW product or service to a firm’s current target market

Question 11

diversification strategy

Answer 11

growth strategy that introduces a **new
**product or service to a market segment that it does not currently serve