Chapter 2 - Marketing Stategy & Marketing Plan

Question 1

What is a marketing strategy?

Answer 1

a firm’a target market, marketing mix and method of obtaining competitive advantage

Question 2

Competitive advantage

Answer 2

advantage competitors gain by offering greater customer value
- lower prices/higher benefits
- differentiate in terms of product, service, channels, people

Question 3

Sustainable competitive advantage

Answer 3

something that a company can persistently do better than its competitors that the customer cares about

Question 4

What are the four aspects of customer value?

Answer 4

1) Product excellence - high value, beneficial, good features
2) Customer excellence - retaining loyal customers
3) Operational excellence - efficient operations, good human resources etc.
4) Locational excellence - good physical presence, internet presence

Question 5

What is strategic planning?

Answer 5

process of developing and maintaining a strategic fit between the org. goals and capabilities and it’s changing marketing opportunities

Question 6

3 phases of strategic planning

Answer 6

1) Planning
2) Implementation
3) Control

Question 7

Marketing plan with steps

Answer 7

Step 1 - Define the Business mission
Step 2 - Conduct a situation analysis (SWOT)
Step 3 - Identify opportunities
Step 4 - Implement marketing mix
Step 5 - Evaluate performance using metrics

Question 8

What is market segmentation?

Answer 8

dividing market into meaningful and identifiable groups based on similar characteristics

Question 9

Target market

Answer 9

set of buyers sharing a common need or characteristic that the company decides to serve

Question 10

Market targeting strategies

Answer 10

• Undifferentiated (mass marketing)
• Differentiated (segmented marketing)
• Concentrated (niche marketing – professors scarf company)
• Micromarketing (local or individual marketing – UNCW Merch)

Question 11

Factors of showing market share and growth rate

Answer 11

Stars - High growth rate, high market share (IPHONE)
Question marks - high growth rate, low market share (Ipod)
Cash cows - low growth rate, high market share (Desktop computer)
Dogs - low growth rate, low market share (Ipad)

Question 12

Product market expansion grid

Answer 12

1) Market penetration - more sales to current customers
2) Product development - new products to current market
3) Market development - selling existing products to new customers
4) Diversification - new products and new markets