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Ch 2


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

Product excellence

Involves a focus on achieving high-quality

products; eective branding and
positioning is key.


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.




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

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.


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.




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.


Anything that is of value to a consumer and

can be oered through a voluntary
marketing exchange.


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

Product development strategy

A growth strategy that oers a new product

or service to a rm's current target market.




Diversication strategy

A growth strategy whereby a rm

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

Related diversication

A growth strategy whereby the current

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

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

Dene the business mission

A SWOT analysis is part of a rm's situation

audit. SWOT is an acronym for

Strengths, Weaknesses, Opportunities, and


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





When marketers execute pricing,

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


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.


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

Market development

What are the 4 macro strategies that focus

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

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

What are the three phases in the marketing


1. Planning
2. Implementation
3. Controlling

Planning phase

1. Mission
2. Situation Analysis

Implementation phase

Marketing mix

Controlling phase


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


H market share H market growth; require

heavy resource investment; eventually will
become cash cows




Question marks

L market share H market growth; Invest to

transfer them into stars or divest


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