Things I should have

learned in Marketing:
Jeopardy edition
• serve as a guide for what the
organization wants to accomplish.
• be “market-oriented” rather than
“product-oriented”.
• be neither too narrow, nor too broad.
• fit with the market environment.
• be motivating.
 What is a mission Statement?
 Should be specific
 Measurable

 Have a Time line

What is an objective?
 An SBU with a high relative market
share in a market that has stopped
growing
What is a Cash Cow
 Figure 2-2:
Growth-Share Matrix
 I should Divest or Harvest
 What is when my SBU is a DOG?
 This is the riskiest of the generic
growth strategies
What is diversification?
 Figure 2-3:
Product / Market
Expansion Grid
 Dividing up a heterogeneous market
into multiple user groups
What is segmenting?
 The group of consumers that you are
trying to sell your products to
What is your target market?
 Creating the perception in the mind
of the consumers that your product
is the ideal product for them
What is product positioning?
 The variables that the marketer
controls, sometimes known as the
4ps
What is the marketing mix?
 This element of the marketing mix
deals with communication
What is promotion?
 Branding and Packaging issues are
part of this element of the Marketing
mix
What is Product?
 Distribution and logistics are part of
this element of the marketing mix
What is Place?
 Figure 2-6:
Managing the
Marketing Effort
 An advantage over competitors
gained by offering consumers greater

value than competitors offer

What is competitive advantage?
 Would have accepted core
competency
 The process of identifying key
competitors; assessing their
objectives, strategies, strengths and
weaknesses, and reaction patterns;
and selecting which competitors to
attack or avoid.
What is competitive analysis
 Concentrating on competitors so
much that you ignore other issues
What is competitor Myopia?
 Using other companies to establish
industry standards
What is benchmarking?
 Those companies that compete in
the same way in the same industry
 What is a strategic group?
 Good or bad competitors
 The generic strategy of Creating a
highly differentiated product line
and marketing program
What is differentiation
 Competitive Strategies
 Basic Winning Competitive
Strategies: Porter
• Overall cost leadership
 Lowest production and
distribution costs
• Differentiation
 Creating a highly
differentiated product line
and marketing program
• Focus
 Effort is focused on serving
a few market segments

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 The value discipline of superior value
via price and convenience
What is operational excellence?
 Basic Competitive Strategies:
Value Disciplines
• Operational excellence
 Superior value via price and convenience
• Customer intimacy
 Superior value by means of building strong
relationships with buyers and satisfying
needs
• Product leadership
 Superior value via product innovation
 Figure 18-3:
Hypothetical
Market Structure
Product proliferation
 What is a market leader
strategy designed to protect
market share?
 Expanding the total demand
• Finding new users
• Discovering and promoting new product
uses
• Encouraging greater product usage
 Protecting market share
• Many considerations
• Continuous innovation
 Expanding market share
• Profitability rises with market share
 Option 1: challenge the market leader
• High-risk but high-gain
• Sustainable competitive advantage over
the leader is key to success
 Option 2: challenge firms of the same
size, smaller size or challenge regional or
local firms
 Full frontal vs. indirect attacks
What are market challenger
strategies?
 Content to not rock the boat and to
rely on “me too” products
 Follow the market leader
• Focus is on improving profit instead of
market share
• Many advantages:
 Learn from the market leader’s

experience
 Copy or improve on the leader’s

offerings
 Strong profitability
 Wants to be the dullest story in
America
Who is the Dial Corporation?
 Targets small lucrative markets
 What is a market nicher?
 Serving market niches means
targeting subsegments
 Good strategy for small firms
with limited resources
 Offers high margins

 Specialization is key

• By market, customer, product,

or marketing mix lines
 Game playing industry
a. Nintendo
a. Wii hyperlink
b. Microsoft
a. Xbox 360
c. Sony
a. Play Station

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 Threat of New Entry
 the existence of barriers to entry
 economies of product differences
 brand equity
 switching costs
 capital requirements
 access to distribution
 absolute cost advantages
 learning curve advantages
 expected retaliation
 government policies

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 Competitive Rivalry
 number of competitors
 rate of industry growth

 intermittent industry overcapacity

 exit barriers

 diversity of competitors

 informational complexity and

asymmetry
 brand equity

 fixed cost allocation per value added

 level of advertising expense

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 Supplier Power
 supplier switching costs relative to
firm switching costs
 degree of differentiation of inputs
 presence of substitute inputs
 supplier concentration to firm
concentration ratio
 threat of forward integration by
suppliers relative to the threat of
backward integration by firms
 cost of inputs relative to selling
price of the product
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 Buyer Power
 buyer concentration to firm
concentration ratio
 bargaining leverage
 buyer volume
 buyer switching costs relative to firm
switching costs
 buyer information availability
 ability to backward integrate
 availability of existing substitute
products
 buyer price sensitivity
 price of total purchase
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 Threat of Substitution
 buyer propensity to substitute
 relative price performance of
substitutes
 buyer switching costs

 perceived level of product

differentiation

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