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9/9/2016

Ch 2

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51 terms by Sang_Ngo5

Marketing strategy

A rm's target market, marketing mix, and


method of obtaining a sustainable
competitive advantage.

Sustainable Competitive Advantage

Something the rm can persistently do


better than its competitors.

Customer excellence

Involves a focus on retaining loyal


customers and excellent customer service.

Operational excellence

Involves a rm's focus on ecient


operations and excellent supply chain
management.

Product excellence

Involves a focus on achieving high-quality


products; eective branding and
positioning is key.

Location

A method of achieving excellence by


having a strong physical location and/or
Internet presence.

Marketing plan

A written document composed of an


analysis of the current marketing situation,
opportunities and threats for the rm,
marketing objectives and strategy specied
in terms of the four Ps, action programs,
and projected or pro forma income (and
other nancial) statements.

Planning phase

The part of the strategic marketing


planning process when marketing
executives, in conjunction with other top
managers, (1) dene the mission or vision of
the business and (2) evaluate the situation
by assessing how various players, both in
and outside the organization, aect the
rm's potential for success.

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Implementation phase

The part of the strategic marketing


planning process when marketing
managers (1) identify and evaluate dierent
opportunities by engaging in segmentation,
targeting, and positioning (see STP) and (2)
implement the marketing mix using the four
Ps.

Control phase

The part of the strategic marketing


planning process when managers evaluate
the performance of the marketing strategy
and take any necessary corrective actions.

Mission statement

A broad description of a rm's objectives


and the scope of activities it plans to
undertake; attempts to answer two main
questions: What type of business is it? What
does it need to do to accomplish its goals
and objectives?

Situation Analysis

Second step in a marketing plan; uses a


SWOT analysis that assesses both the
internal environment with regard to its
Strengths and Weaknesses and the external
environment in terms of its Opportunities
and Threats.

STP

The processes of segmentation, targeting,


and positioning that rms use to identify
and evaluate opportunities for increasing
sales and prots.

Market segment

A group of consumers who respond


similarly to a rm's marketing eorts.

Market segmentation

The process of dividing the market into


groups of customers with dierent needs,
wants, or characteristicswho therefore
might appreciate products or services
geared especially for them.

Target marketing/targeting

The process of evaluating the attractiveness


of various segments and then deciding
which to pursue as a market.

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Market positioning

Involves the process of dening the


marketing mix variables so that target
customers have a clear, distinctive,
desirable understanding of what the
product does or represents in comparison
with competing products.

Products

Anything that is of value to a consumer and


can be oered through a voluntary
marketing exchange.

Metric

A measuring system that quanties a trend,


dynamic, or characteristic.

Strategic Business Unit (SBU)

A division of the rm itself that can be


managed and operated somewhat
independently from other divisions and
may have a dierent mission or objectives.

Product lines

Groups of associated items, such as those


that consumers use together or think of as
part of a group of similar products.

Market share

Percentage of a market accounted for by a


specic entity.

Relative Market Share

A measure of the product's strength in a


particular market, dened as the sales of
the focal product divided by the sales
achieved by the largest rm in the industry.

Market growth rate

The annual rate of growth of the specic


market in which the product competes.

Market penetration strategy

A growth strategy that employs the existing


marketing mix and focuses the rm's eorts
on existing customers.

Market development strategy

A growth strategy that employs the existing


marketing oering to reach new market
segments, whether domestic or
international.

Product development strategy

A growth strategy that oers a new product


or service to a rm's current target market.

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Diversication strategy

A growth strategy whereby a rm


introduces a new product or service to a
market segment that it does not currently
serve.

Related diversication

A growth strategy whereby the current


target market and/or marketing mix shares
something in common with the new
opportunity.

Unrelated Diversication

A growth strategy whereby a new business


lacks any common elements with the
present business.

Supply chain eciency, a strong brand


name, and customer satisfaction are likely
to be sources of a

Sustainable competitive advantage

Although competitors can copy or match


the goods and services a rm oers, the
rm can still develop a sustainable
competitive advantage through ____ if it its
products have a high perceived value and
eective branding or positioning

Product excellence

A document that analyzes the current


marketing situation, opportunities and
threats for the rm, marketing objectives in
terms of the four Ps, action plans, and pro
forma nancial statements is known as

Marketing plan

Of the ve steps to the strategic marketing


planning process, which step usually comes
rst?

Dene the business mission

A SWOT analysis is part of a rm's situation


audit. SWOT is an acronym for

Strengths, Weaknesses, Opportunities, and


Threats

Susan is a marketing manager for a


consumer products company. Before she
can implement the marketing mix, she must
begin identifying market segments that her
company could pursue. In target marketing,
Susan will

Evaluate each potential segment's


atractiveness

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When marketers execute pricing,


promotion, place and product strategies,
they are in the ___ phase of marketing
planning.

Implementation

Frederic has been assigned the task of


assembling information to monitor whether
the plans he implemented are achieving
what they are supposed to. He will look at
both performance and nancial measures.
Frederic will use a series of ____, which are
measuring systems that quantify a trend,
dynamic, or characteristic.

Metrics

Chuck hear his unit described as a dog. He


later found out that meant

The products in his unit are in a low-growth


market with low market share and will be
phased out.

Which of the following is one of the four


major growth strategies marketers typically
pursue?

Market development

What are the 4 macro strategies that focus


on marketing mix to create and deliver
value and develop sustainable competitive
advantage?

1. Product Excellence
2. Customer Excellence
3. Operational Excellence
4. Locational Excellence

What are the three phases in the marketing


plan

1. Planning
2. Implementation
3. Controlling

Planning phase

1. Mission
2. Situation Analysis

Implementation phase

STP
Marketing mix

Controlling phase

metrics

Portfolio analysis
A popular method is the

BCG Matrix
x axis - market share
y axis - market growth rate

Cash Cows

H market share L market growth; Use cash


to invest in stars and question marks

Stars

H market share H market growth; require


heavy resource investment; eventually will
become cash cows

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Question marks

L market share H market growth; Invest to


transfer them into stars or divest

Dogs

Low market share L market growth; sold o


or liquidated (don't be this)

What are the 4 growth strategies and


explain them

Market penetration - current markets and


current products and services
Market development - new markets and
current products and services
Product development - current markets
and new products and services
Diversication - new markets and new
products and services

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