Chapter 3: Elements of Marketing Strategy, Planning, and Competition

Question 1

What is Value and Utility?

Answer 1

1. Value is a ratio of benefits to costs, as viewed from the eyes of the beholder (the customer).
2. A Benefit is some type of utility that the company and its products and services provides a customer.
3. A Cost may be financial, time, opportunity costs, or otherwise.

Question 2

Four major types of utility?

Answer 2

1. Form utility
2. Time utility
3. Place utility
4. Ownership utility

Question 3

The value proposition.

Answer 3

Must be strong enough to move customers past satisfaction.

1. Customer satisfaction
2. Customer loyalty
3. Customer retention increase
4. Customer switching decrease

Question 4

Value Creating

Answer 4

1. Primary Activities
   * Inbound logistic
   * Operation
   * Outbound logistic
   * Marketing & sales
   * Service
2. Support Activities
   * Firm Infrastructure
   * Resource Human Management
   * Technology Development
   * Procurement

Question 5

Marketing Planning

Answer 5

Marketing planning is the ongoing process of developing and implementing market-driven strategies for an organization.

Question 6

Marketing Planning Is Both Strategic and Tactical

Answer 6

• Marketing (Big M) serves as a core driver of business strategy.
• marketing (little m) represents the specific programs and tactics aimed at customers and other stakeholder groups.
• The common link between these two levels is marketing planning.

Question 7

Marketing Planning Elements

Answer 7

1. Portfolio Analysis
2. Mission Statement
3. Goals & Objectives
4. Strategy

Question 8

Strategy Categories

Answer 8

1. Cost Leadership
   2.Differentiation
2. Focus (or niche)

Question 9

Elements of Marketing Planning: Competencies

Answer 9

1. Core Competencies (Activities the firm does well)
2. Distinctive Competencies (Core competencies that are superior than competitor)
3. Sustainable Competitive Advantage (Cannot be easily duplicate by competitors)

Question 10

Elements of Marketing Planning: Additional Aspects

Answer 10

Develop marketing strategies.

1. Market penetration
2. Product development
3. Market development
4. Diversification

Question 11

Elements of Marketing Planning: Implementation

Answer 11

Forecast ==> Budget ==> Appropriate Marketing Matrics

Question 12

Elements of Marketing Planning: Control and Plans

Answer 12

1. Marketing control
2. Action plans
3. Contingency plans