Marketing Strategy Book Flashcards
4 Ps of Marketing
Produce, Price, Place, Promotion
Define Corporate Strategy
The direction and scope of an organization over the long term, to achieve some well-defined objectives
Marketing Principal
A First Principal or underlying assumption, when matched with its associated managerial decisions
Define First Principal
the fundamental concepts or assumptions on which a theory, system, or method is based
Define Marketing Strategy
building a sustainable differential advantage in the minds of customers, to create value for stakeholders
Define Customer Heterogeneity
The variation among customers in terms of needs, desires, and subsequent behaviors
What is STP (Segmentation, Targeting, Positioning) Approach
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
What is a customer-centric approach?
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
Define Customer dynamics
the processes by which customers desires and needs change over time
What is the learning effect
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
What is customers lifecycle
the average change or migration among customers as they age, independent of any produce or industry difference
what is a product or industry lifecycle
typical user experiences and industry developmental effects that can be observed as the product category matures
what is the AER (acquisition, expansion, retention) approach?
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
what is customer lifetime value (CLV)
an approach that attempts to capture the financial contribution of each customer by determining the discounted value of the sales and cost
What is sustainable competitive advantage (SCA)
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
What is brand, offering, relation (BOR) equity stack
a stack of brand, offering, and relationship equities that represents the firms overall customer equity
What is heuristic-based processes
a decision making process where an individual uses lay theories or common believes (Heuristics) to make decisions with uncertain outcomes
what are attribution-based processes
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
What are individual differences
a person’s stable and consistent way of responding to the environment in a specific domain
What are functional needs
the relative importance of functional attributes (e.g, design and features) to an individual based on their personal circumstances
What is self-idenity
the defining characteristic of a person in their social context
What are marketing activities
Strategic initiatives aimed at generating value to a customer through a firms product or service offerings
what is latent customer heterogeneity
potential differences in desires that are unobserved and have not manifested in different customer purchases or behaviors
what is mass marketing (undifferentiated marketing)
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
What is niche marketing
a marketing strategy that focuses marketing efforts on well0-defined narrow segments of consumers in hopes of gaining a competitive advantage through specialization
what is one-to-one marketing
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
What is segmenting
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
What is a cluster analysis
a technique that uses customer preferences to cluster individual customers into a given number of groups
what is a factor analysis
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
What is a multiple discriminant analysis (MDA)
a technique to classify research respondents into appropriate segments using a set of demographic characteristics as the predictors
what is market attractiveness
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
at is competitive strength
a mesurent that captures the relative strength of a firm versus competitors at securing and maintaining market share in a given segment
What is a GE Matrix
an analysis tool designed to help managers visualize and select target segments
What are perceptual maps
maps that depict customer segments, competitors, and firm’s own position in multidimensional space defined by the purchase attributes identified during the segmentation processes
what is repositioning
the process by which a firm shifts its target market
What is a positioning statement
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
What is a SWOT analyssi
Strengths, weaknesses, opportunities, threats
What is a classification analysis
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
