Chapter 2: Developing Marketing Strategy & Plan

Question 1

Marketing Strategy

Answer 1

Identifies a firm’s:
-Target market(s)
-A related marketing mix—the four Ps
-The bases upon which the firm plans to build a sustainable competitive advantage

Question 2

Four Macro Strategies for Developing Customer Value & Provide Competitive Advantage

Answer 2

-Customer excellence: Focuses on retaining loyal customers and excellent customer service.
-Operational excellence: Achieved through efficient operations and excellent supply chain and human resource management.
-Product excellence: Having products with high perceived value and effective branding and positioning.
-Locational excellence: Having a good physical location and Internet presence.

Question 3

Marketing Plan is a written document composed of what? (5)

Answer 3

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 four Ps.
-Action programs.
-Projected or pro forma income statements.

Question 4

What are the three major phases of the marketing plan? What are the five steps and which phases are they a part of?

Answer 4

-Planning Phase:
Step 1 -> Business Mission & Objectives
Step 2 -> Situation Analysis (SWOT)

-Implementation Phase:
Step 3 -> Identify Opportunities (STP)
Step 4 -> Implement Marketing Mix (Four P’s)

-Control Phase:
Step 5 -> Evaluate Performance by using Marketing Metrics

Question 5

What does STP stand for? What is it used for?

Answer 5

Segmentation
Targeting
Positioning

Used to identify and evaluate different market opportunities

Question 6

What are the two main questions a mission statement attempts to answer?

Answer 6

1) What type of business are we?
2) What do we need to do to accomplish our goals and objectives?

Question 7

What is a SWOT Analysis? Which part assesses the internal environment and which part assesses the external?

Answer 7

Part of a situation analysis.

Internal:
Strengths
Weaknesses

External:
Opportunities
Threats

Question 8

What does SBU stand for? What is it?

Answer 8

Strategic Business Unit.

A division of a 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.

Question 9

What does SWOT stand for? What do each mean?

Answer 9

Strengths - INTERNAL capabilities that may help a company each its objectives
Weaknesses - INTERNAL limitations that may interfere with a company’s ability to achieve its objectives
Opportunities - EXTERNAL factors that the company may be able to exploit to its advantage
Threats - ETERNAL factors that are current and emerging that may challenge the company’s performance

Question 10

What are the 2 main questions a mission statement attempts to answer?

Answer 10

What type of business are we?

What do we need to do to accomplish our goals and objectives?

Question 11

What is portfolio analysis? At what level is it performed at?

Answer 11

Performed by management to evaluate the firms products and businesses (its portfolio) and allocate resources according to those expected to be the most profitable in the future.’

Performed at the strategic business unit (SBU) level or product line

Question 12

Market Penetration Growth Strategy (T)

Answer 12

Employing current product in current market

Question 13

Market Development Growth Strategy

Answer 13

Employing current product in new market

Question 14

Product Development Growth Strategy

Answer 14

Employing new product in exiting market

Question 15

Diversification Growth Strategy

Answer 15

Employing new product in new market