Domain 1: Marketing Strategy

Question 1

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.

Answer 1

Market

Question 2

The application, tracking and review of a company’s marketing resources and activities.

Answer 2

Marketing management

Question 3

A person, persons or an organization that have an interest, effect and can be affected by what the organization does.

Answer 3

Stakeholder

Question 4

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.

Answer 4

Societal marketing

Question 5

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.

Answer 5

Sustainability

Question 6

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.

Answer 6

Value

Question 7

This type of value is what an offer does, it’s the solution an offer provides to the customer.

Answer 7

Functional Value

Question 8

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.

Answer 8

Monetary Value

Question 9

The extent to which a product allows consumers to express themselves or feel better.

Answer 9

Psychological Value

Question 10

The act of obtaining a desired object from someone by offering something in return.

Answer 10

Exchange

Question 11

Follows the premise that any product of high quality can be readily sold.

Answer 11

Production orientation

Question 12

A strategic approach where the needs and wants of the firm or salesperson are valued over the customer.

Answer 12

Sales orientation

Question 13

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.

Answer 13

Marketing concept

Question 14

Refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.

Answer 14

Marketing mix (4Ps of marketing)

Question 15

Refers to the item actually being sold.

Answer 15

Product

Question 16

Refers to the value that is put for a product.

Answer 16

Price

Question 17

Refers to the point of sale.

Answer 17

Place

Question 18

Refers to all the activities undertaken to make the product or service known to the user and trade.

Answer 18

Promotion

Question 19

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.

Answer 19

Customer-centric

Question 20

Creating specialized products that gain competitive advantage with a particular segment of the market.

Answer 20

Differentiation

Question 21

A company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix.

Answer 21

Market orientation

Question 22

An organization that places customer satisfaction at the core of each of its business decisions.

Answer 22

Customer orientation

Question 23

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.

Answer 23

Relationship orientation

Question 24

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.

Answer 24

One-to-one marketing

Question 25

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Answer 25

Mass customization

Question 26

Creating value for a specific group of people. That’s it. That’s what real marketing is and what good marketing does.

Answer 26

Marketing (Big M)

Question 27

What most people understand marketing to be – clever advertising, endless promotions, worthless coupons, and fancy logo designs.

Answer 27

Marketing (Little m)

Question 28

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.

Answer 28

Strategic marketing

Question 29

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.”

Answer 29

Market creation

Question 30

The tactics you will implement to make things happen as per strategy.

Answer 30

Tactical marketing

Question 31

Measurable values used by marketing teams to demonstrate the effectiveness of campaigns across all marketing channels.

Answer 31

Marketing metrics

Question 32

Desirable attribute of a good or service, which a customer perceives he or she will get from purchasing.

Answer 32

Benefit

Question 33

Refers to the value or benefit a customer receives from the exchange.

Answer 33

Utility

Question 34

An innovation, service, or feature intended to make a company or product attractive to customers.

Answer 34

Value proposition

Question 35

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.

Answer 35

Customer satisfaction

Question 36

The measure of success of the supplier in retaining a long term relationship with the customer.

Answer 36

Customer loyalty

Question 37

Refers to the ability of a company or product to retain its customers over some specified period.

Answer 37

Customer retention

Question 38

Customers/consumers abandoning a product or service in favor of a competitor.

Answer 38

Customer switching

Question 39

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.

Answer 39

Value chain

Question 40

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.

Answer 40

Value-creating activities

Question 41

Inbound logistics, operations, outbound logistics, marketing and sales, and service.

Answer 41

Primary activities

Question 42

Purchasing, HR, technological development, and infrastructure.

Answer 42

Secondary activities

Question 43

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.

Answer 43

Marketing planning

Question 44

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.

Answer 44

Marketing plan

Question 45

A relatively autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities.

Answer 45

Strategic business unit (SBU)

Question 46

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.

Answer 46

Corporate-level strategic plan

Question 47

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.

Answer 47

Cost Leadership

Question 48

Value is provided to customers through unique features and characteristics of an organization’s products rather than by the lowest price.

Answer 48

Differentiation

Question 49

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.

Answer 49

Focused Low Cost

Question 50

Organizations not only compete based on differentiation, but also select a small segment of the market to provide goods and services.

Answer 50

Focused Differentiation

Question 51

Strategies that seek to serve the needs of a particular customer segment (e.g., federal government).

Answer 51

Focused Strategies

Question 52

A systematic way to analyze the products and services that make up an association’s business portfolio.

Answer 52

Portfolio analysis

Question 53

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.

Answer 53

Boston Consulting Group (BCG) GrowthShare Matrix

Question 54

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.

Answer 54

GE Business Screen

Question 55

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.

Answer 55

Functional-level strategies

Question 56

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”.

Answer 56

Mission statement

Question 57

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.

Answer 57

Strategic vision

Question 58

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.

Answer 58

Goals

Question 59

Goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame.

Answer 59

Objectives

Question 60

A plan of action or policy designed to achieve a major or overall aim.

Answer 60

Strategy

Question 61

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.”

Answer 61

Generic strategy

Question 62

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.

Answer 62

Competitive strategy

Question 63

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.

Answer 63

Core competencies

Question 64

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.

Answer 64

Distinctive competencies

Question 65

Company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

Answer 65

Sustainable competitive advantage

Question 66

Four types exist: defender, prospector, analyzer, and reactor.

Answer 66

Strategic type

Question 67

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.

Answer 67

Defender

Question 68

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.

Answer 68

Prospector

Question 69

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.

Answer 69

Analyzer

Question 70

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.

Answer 70

Reactor

Question 71

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.

Answer 71

First-mover advantage

Question 72

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.

Answer 72

First mover disadvantages

Question 73

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.

Answer 73

Situation analysis

Question 74

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.

Answer 74

SWOT analysis

Question 75

A strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth.

Answer 75

The Ansoff Matrix

Question 76

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.

Answer 76

Market penetration strategies

Question 77

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:

Answer 77

Product development strategies

Question 78

One of the four alternative growth strategies in the Ansoff Matrix. This strategy involves selling your existing products into new markets.

Answer 78

Market development strategies

Question 79

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.

Answer 79

Diversification strategies

Question 80

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.

Answer 80

Marketing control