Domain 1: Marketing Strategy Flashcards
The group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product.
Market
The application, tracking and review of a company’s marketing resources and activities.
Marketing management
A person, persons or an organization that have an interest, effect and can be affected by what the organization does.
Stakeholder
A promotional process whereby a business first assesses the interests of targeted consumers and then aims to deliver products more effectively and efficiently than its competition so that it benefits their customer’s and society’s overall welfare. This approach seeks to balance the pursuit of business profits with consumer desires and society’s best interests.
Societal marketing
Involves developing and promoting products and services that meet consumer and business user needs utilizing society’s natural, human, and cultural resources responsibly to ensure a better quality of life now and for future generations to come.
Sustainability
Also known as customer-perceived value, is the difference between a prospective customer’s evaluation of the benefits and costs of one product when compared with others. May also be expressed as a straightforward relationship between perceived benefits and perceived costs.
Value
This type of value is what an offer does, it’s the solution an offer provides to the customer.
Functional Value
This is where the function of the price paid is relative to an offerings perceived worth. This value invites a trade-off between other values and monetary costs.
Monetary Value
The extent to which a product allows consumers to express themselves or feel better.
Psychological Value
The act of obtaining a desired object from someone by offering something in return.
Exchange
Follows the premise that any product of high quality can be readily sold.
Production orientation
A strategic approach where the needs and wants of the firm or salesperson are valued over the customer.
Sales orientation
Management philosophy according to which a firm’s goals can be best achieved through identification and satisfaction of the customers’ stated and unstated needs and wants.
Marketing concept
Refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.
Marketing mix (4Ps of marketing)
Refers to the item actually being sold.
Product
Refers to the value that is put for a product.
Price
Refers to the point of sale.
Place
Refers to all the activities undertaken to make the product or service known to the user and trade.
Promotion
Strategy that places the individual customer at the center of marketing design and delivery. It starts from the realization that there is no “average” customer.
Customer-centric
Creating specialized products that gain competitive advantage with a particular segment of the market.
Differentiation
A company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix.
Market orientation
An organization that places customer satisfaction at the core of each of its business decisions.
Customer orientation
Establishes a “collective mind” or a belief system for the organization that considers customer relationship an asset and drives the choice of mean (processes) to accomplish this outcome.
Relationship orientation
A strategy that relies on getting to know the individual choices made by a customer, and then tailoring marketing outreach to each customer differently based on those choices. It’s an approach that is not used to get the customer’s attention, but to keep their attention and their business.
One-to-one marketing
A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.
Mass customization
Creating value for a specific group of people. That’s it. That’s what real marketing is and what good marketing does.
Marketing (Big M)
What most people understand marketing to be – clever advertising, endless promotions, worthless coupons, and fancy logo designs.
Marketing (Little m)
Identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them.
Strategic marketing
The removal of barriers to trade and the assignment of well-defined property rights to create markets where environmental goods and services with privately-appropriate values can be traded to realize their full potential values. Generates incentives for the sustainable use of resources.”
Market creation
The tactics you will implement to make things happen as per strategy.
Tactical marketing
Measurable values used by marketing teams to demonstrate the effectiveness of campaigns across all marketing channels.
Marketing metrics
Desirable attribute of a good or service, which a customer perceives he or she will get from purchasing.
Benefit
Refers to the value or benefit a customer receives from the exchange.
Utility
An innovation, service, or feature intended to make a company or product attractive to customers.
Value proposition
Often abbreviated as CSAT, more correctly CSat, is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction
The measure of success of the supplier in retaining a long term relationship with the customer.
Customer loyalty
Refers to the ability of a company or product to retain its customers over some specified period.
Customer retention
Customers/consumers abandoning a product or service in favor of a competitor.
Customer switching
A high-level model developed by Michael Porter used to describe the process by which businesses receive raw materials, add value to the raw materials through various processes to create a finished product, and then sell the finished product to customers.
Value chain
The performance of actions that increase the worth of goods, services or even a business. Many business operators now focus on value creation both in the context of creating better value for customers purchasing its products and services, as well as for shareholders in the business who want to see their stake appreciate in value.
Value-creating activities
Inbound logistics, operations, outbound logistics, marketing and sales, and service.
Primary activities
Purchasing, HR, technological development, and infrastructure.
Secondary activities
A systematic process involving the assessment of marketing opportunities and resources, the determination of marketing objectives and the development of a plan for implementation and control.
Marketing planning
A comprehensive document or blueprint that outlines a business advertising and marketing efforts for the coming year. It describes business activities involved in accomplishing specific marketing objectives within a set time frame. A marketing plan also includes a description of the current marketing position of a business, a discussion of the target market and a description of the marketing mix that a business will use to achieve their marketing goals.
Marketing plan
A relatively autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities.
Strategic business unit (SBU)
Systematic process of determining goals to be achieved in the foreseeable future. It consists of: (1) Management’s fundamental assumptions about the future economic, technological, and competitive environments. (2) Setting of goals to be achieved within a specified timeframe. (3) Performance of SWOT analysis. (4) Selecting main and alternative strategies to achieve the goals. (5) Formulating, implementing, and monitoring the operational or tactical plans to achieve interim objectives.
Corporate-level strategic plan
Organizations compete for a wide customer based on price. Price is based on internal efficiency in order to have a margin that will sustain above average returns and cost to the customer so that customers will purchase your product/service.
Cost Leadership
Value is provided to customers through unique features and characteristics of an organization’s products rather than by the lowest price.
Differentiation
Organizations not only compete on price, but also select a small segment of the market to provide goods and services to. For example a company that sells only to the U.S. government.
Focused Low Cost
Organizations not only compete based on differentiation, but also select a small segment of the market to provide goods and services.
Focused Differentiation
Strategies that seek to serve the needs of a particular customer segment (e.g., federal government).
Focused Strategies
A systematic way to analyze the products and services that make up an association’s business portfolio.
Portfolio analysis
A chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines.
Boston Consulting Group (BCG) GrowthShare Matrix
Originally developed to help marketing managers overcome the problems that are commonly associated with the Boston Matrix (BCG), such as the problems with the lack of credible business information, the fact that BCG deals primarily with commodities not brands or Strategic Business Units (SBU’s), and that cashflow if often a more reliable indicator of position as opposed to market growth/share.
GE Business Screen
Organizational plans prepared for various functional areas of a company’s organizational structure (e.g., marketing strategy, financial strategy, production strategy etc.). Functional strategies can be part of overall corporate strategy or serve as separate plans of strategy cascading/implementation within a functional area.
Functional-level strategies
A short statement of an organization’s purpose, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. It may include a short statement of such fundamental matters as the organization’s values or philosophies, a business’s main competitive advantages, or a desired future state—the “vision”.
Mission statement
Ideas for the direction and activities of business development. Generally included in a document or statement so all company managers can share the same vision for the company and make decisions according to the shared principles and company mission.
Strategic vision
Specific objectives described in a marketing plan. These goals can be tasks, quotas, improvements in KPIs, or other performance-based benchmarks used to measure marketing success. When explicitly set, measurable goals are key for marketers to be successful.
Goals
Goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame.
Objectives
A plan of action or policy designed to achieve a major or overall aim.
Strategy
These three approaches are examples of “generic strategies,” because they can be applied to products or services in all industries, and to organizations of all sizes. They were first set out by Michael Porter in 1985 in his book, “Competitive Advantage: Creating and Sustaining Superior Performance.”
Generic strategy
The long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment). Such type of strategies play a very important role when industry is very competitive and consumers are provided with almost similar products.
Competitive strategy
The resources and/or strategic advantages of a business, including the combination of pooled knowledge and technical capacities, that allow it to be competitive in the marketplace. They are what the company does best and consist of the combined activities, operations, and resources that distinguish the company from competitors.
Core competencies
Refers to some characteristic of a business that it does better than its competitors. Because the business is able to do something better than other businesses, that business has a competitive advantage over other businesses.
Distinctive competencies
Company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.
Sustainable competitive advantage
Four types exist: defender, prospector, analyzer, and reactor.
Strategic type
A company that, having gained control of a particular market concentrates on keeping it secure. The company is unlikely to spread into new areas unless compelled to by competition or changing customer requirements.
Defender
A company that’s focused on the discovery and release of new products into existing and/or new markets. The company is generally highly dynamic, has a significant appetite for risk and is comfortable shedding existing products to remain fluid. Tends to be hard to predict and strongly emphasizes innovation and always being on the leading edge.
Prospector
A company that attempts to balance the innovation of a Prospector with the efficiency of a Defender. If this is achieved then the company can become virtually unassailable in their market, a recent example of this would be Ikea with their innovative business model and low cost base. These organizations attempt to choose viable opportunities to exploit while maintaining strong products and loyal customers.
Analyzer
Reactors are the companies that are unable or unwilling to take a consistent approach. These organizations are characterized as lacking an understanding of strategy and are consumed with moving from one tactical solution to the next. Reactors tend to apply engineering and administrative solutions inconsistently causing inefficient structures that restrict flexibility.
Reactor
A business that obtains a competitive advantage by being first to market with a product or service. Among other things, being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the market.
First-mover advantage
Other businesses can copy and improve upon first-movers’ products, thereby capturing first-movers’ share of the market. Also, often in the race to be the first out of the gate, a company may forsake key product features to expedite production. If the market responds unfavorably, later entrants capitalize on the first mover’s failures to produce a product that aligns with consumer interests. The costs to create vs. the costs to imitate are significantly disproportionate. To replicate a product, it costs approximately 60-75% less than it cost for the new product’s creation.
First mover disadvantages
A collection of methods that managers use to analyze an organization’s internal and external environment to understand the organization’s capabilities, customers, and business environment.
Situation analysis
a framework used to evaluate a company’s competitive position by identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational assessment model that measures what an organization can and cannot do, and its potential opportunities and threats.
SWOT analysis
A strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth.
The Ansoff Matrix
One of the four alternative growth strategies in the Ansoff Matrix. Involves focusing on selling your existing products or services into your existing markets to gain a higher market share. This is the first strategy most organizations will consider because it carries the lowest amount of risk.
Market penetration strategies
One of the four alternative growth strategies in the Ansoff Matrix. The process of bringing a new innovation to consumers from concept to testing through distribution. This strategy looks at improving existing products to invigorate an existing market or create new products that the market seeks. The steps involved in product development are similar in each type of strategy:
Product development strategies
One of the four alternative growth strategies in the Ansoff Matrix. This strategy involves selling your existing products into new markets.
Market development strategies
One of the four alternative growth strategies in the Ansoff Matrix. This is achieved by developing new products for completely new markets. As such, it is inherently more risky than product development because by definition the organization has little or no experience of the new market. In addition, the new skills needed both in terms of marketing and operations often require substantial investment. This is usually achieved by acquiring an organization already operating in the new market.
Diversification strategies
The process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.
Marketing control
