Marketing Strategy Book

Question 1

4 Ps of Marketing

Answer 1

Produce, Price, Place, Promotion

Question 2

Define Corporate Strategy

Answer 2

The direction and scope of an organization over the long term, to achieve some well-defined objectives

Question 3

Marketing Principal

Answer 3

A First Principal or underlying assumption, when matched with its associated managerial decisions

Question 4

Define First Principal

Answer 4

the fundamental concepts or assumptions on which a theory, system, or method is based

Question 5

Define Marketing Strategy

Answer 5

building a sustainable differential advantage in the minds of customers, to create value for stakeholders

Question 6

Define Customer Heterogeneity

Answer 6

The variation among customers in terms of needs, desires, and subsequent behaviors

Question 7

What is STP (Segmentation, Targeting, Positioning) Approach

Answer 7

the general approach of grouping customers into segments, selecting target segments and using marketing activities to improve a firm’s positioning in the target segments

Question 8

What is a customer-centric approach?

Answer 8

a company-wide philosophy that places customers needs at the center of an organization’s strategic process and uses the resultant insights to make decisions

Question 9

Define Customer dynamics

Answer 9

the processes by which customers desires and needs change over time

Question 10

What is the learning effect

Answer 10

the process by which customers become familiar with the product by using it, which changes their weighting of the relative importance of the different attributes due to their enhanced knowledge and experience

Question 11

What is customers lifecycle

Answer 11

the average change or migration among customers as they age, independent of any produce or industry difference

Question 12

what is a product or industry lifecycle

Answer 12

typical user experiences and industry developmental effects that can be observed as the product category matures

Question 13

what is the AER (acquisition, expansion, retention) approach?

Answer 13

an approach that groups existing customers into three stages - those recently acquired, longer term customers, and those at risk of being lost - can offer some insights into customer dynamics

Question 14

what is customer lifetime value (CLV)

Answer 14

an approach that attempts to capture the financial contribution of each customer by determining the discounted value of the sales and cost

Question 15

What is sustainable competitive advantage (SCA)

Answer 15

an advantage that a firm has when it is able to generate more customer value than the other firms in its industry and when these other firms are unable to duplicate its effective strategy

Question 16

What is brand, offering, relation (BOR) equity stack

Answer 16

a stack of brand, offering, and relationship equities that represents the firms overall customer equity

Question 17

What is heuristic-based processes

Answer 17

a decision making process where an individual uses lay theories or common believes (Heuristics) to make decisions with uncertain outcomes

Question 18

what are attribution-based processes

Answer 18

a method for gauging marketing effectiveness that attributes casual economic effect to a marketing investment in environments where multiple marketing and confounding events may shape an economic outcomes

Question 19

What are individual differences

Answer 19

a person’s stable and consistent way of responding to the environment in a specific domain

Question 20

What are functional needs

Answer 20

the relative importance of functional attributes (e.g, design and features) to an individual based on their personal circumstances

Question 21

What is self-idenity

Answer 21

the defining characteristic of a person in their social context

Question 22

What are marketing activities

Answer 22

Strategic initiatives aimed at generating value to a customer through a firms product or service offerings

Question 23

what is latent customer heterogeneity

Answer 23

potential differences in desires that are unobserved and have not manifested in different customer purchases or behaviors

Question 24

what is mass marketing (undifferentiated marketing)

Answer 24

a marketing strategy that utilizes mass media to appeal to an entire market with a single message

where a firm mostly ignores customers heterogeneity based on the assumption that reaching the largest audience possible will lead to the largest sales revenue

Question 25

What is niche marketing

Answer 25

a marketing strategy that focuses marketing efforts on well0-defined narrow segments of consumers in hopes of gaining a competitive advantage through specialization

Question 26

what is one-to-one marketing

Answer 26

a marketing strategy that attempts to market directly to a specific customer;

where a firm attempts to tailor one or more aspects of the firm’s marketing mix to the individual customer, segmenting a population to the extreme by having a single customer in the target segment

Question 27

What is segmenting

Answer 27

the process of dividing the overall market into groups where the potential customers in each group have similar needs and desires for a particular category of product or service while also maximizing the differences among groups

Question 28

What is a cluster analysis

Answer 28

a technique that uses customer preferences to cluster individual customers into a given number of groups

Question 29

what is a factor analysis

Answer 29

a way to meaningfully reduce the number of variables being investigated in a research study. an important preceding step for any cluster analysis depending on the number of times included in a research study

Question 30

What is a multiple discriminant analysis (MDA)

Answer 30

a technique to classify research respondents into appropriate segments using a set of demographic characteristics as the predictors

Question 31

what is market attractiveness

Answer 31

a measurement that captures the external market characteristics that make a given segment strategically and financially valuable to serve. such as size, growth rate, and price sensitivityh

Question 32

at is competitive strength

Answer 32

a mesurent that captures the relative strength of a firm versus competitors at securing and maintaining market share in a given segment

Question 33

What is a GE Matrix

Answer 33

an analysis tool designed to help managers visualize and select target segments

Question 34

What are perceptual maps

Answer 34

maps that depict customer segments, competitors, and firm’s own position in multidimensional space defined by the purchase attributes identified during the segmentation processes

Question 35

what is repositioning

Answer 35

the process by which a firm shifts its target market

Question 36

What is a positioning statement

Answer 36

words that capture the key marketing decisions, internal and external, needed to effectively appeal to customers in the firms target segment that include the who, what and why the firm Is targeting

Question 37

What is a SWOT analyssi

Answer 37

Strengths, weaknesses, opportunities, threats

Question 38

What is a classification analysis

Answer 38

a technique that reports a percentage accuracy at predicting a customer segment for a given set of demographic variables in order to apply a segment prediction to a group of non-surveys customers