BUS 346 Ch 2 – Flashcards
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Marketing strategy
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Target market Related marketing mix sustainable marketing advantage
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Sustainable competitive advantage
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not easily copied by competitors long period of time
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Customer excellence
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loyal customers and excellent customer service
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Operational excellence
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Efficient operations excellent supply chain hr management
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Product excellence
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branding positioning high value
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Locational excellence
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physical location internet presence
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Marketing plan phases
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Planning, Implementation, Control
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Planning phase
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Mission statement: broad description of the firms objectives and activities it plans to take Situation anaysis
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SWOT analysis (situational)
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Internal Environments: strengths and weaknesses External Environments: opportunities and threats
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Implementation Phase
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Step3: identifying and Evaluation Opportunities using STP Segmentation, Targeting, Positioning Step4: Implement marketing mix and allocate resources Value creation, capture price, value delivery place, value communication promo
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Segmentation
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group that responded similarly to firms efforts dividing people into groups gearing especially to one market
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Targeting
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evaluates each segments attractiveness of various segments and deciding which to pursue as a market
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Positioning
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defining marketing mix variables so that target customers have a clear, desirable understand of what the product does or represents
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Control Phase
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Step 5: Eval performance using marketing metrics Financial and Performance Portfolio Analysis
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Metric
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measuring system that quantifies a trend, dynamic, or characteristic level of the organization at which the decision is made and resources the manager controls
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Portfolio Analysis
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example Boston consulting group matrix
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Market Penetration Strategy
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A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.
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Market Development Strategy
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a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international
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Product Development Strategy
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Offers a new product or service to a firm's current target market.
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Diversification Strategy
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A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
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related diversification
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A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity
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unrelated diversification
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A growth strategy whereby a new business lacks any common elements with the present business.
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SBU
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Strategic Business Unit subsidiary division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
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market share
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percentage of market accounted for by a specific entity
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relative market share
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A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.
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market growth rate
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the annual rate of growth of the specific market in which the product competes
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Stars
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upper left quad. high growth high market share heavy resource investments
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Cash Cows
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lower left quad low growth high market share
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Question marks
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upper right high growth low market share
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Dogs
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lower right low growth low market share
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Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. Select one: a. market penetration b. diversification c. product development d. market development e. product proliferation
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C
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For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates Select one: a. weaknesses. b. threats. c. strengths. d. strategic plans. e. opportunities.
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E
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Internal strengths
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Brand celebrity innovation global presence
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Internal weaknesses
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no diversity too many brands management
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External Opportunities
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Emerging countries other segments to explore
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External Threats
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cheaper imports imitation products price competitions
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Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed aNo ________ that allows them to survive. Select one: a. advertising campaign b. plan to evaluate results c. sustainable competitive advantage d. SWOT analysis e. set of performance metrics
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C
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Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. Select one: a. market penetration b. product development c. market development d. product proliferation e. diversification
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A
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Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. Select one: a. situation analysis b. identify and evaluate opportunities c. implement marketing mix and resources d. define the business mission e. evaluate performance
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E
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Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? Select one: a. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. b. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. c. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices. d. Recent consumer studies have indicated that Chinese consumers prefer American cars. e. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
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E A threat is EXTERNAL NEGATIVE
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Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms' Select one: a. target market. b. market segmentation strategy. c. business mission. d. customer excellence strategy. e. positioning strategy.
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E These firms are positioning themselves against the competition, emphasizing their local presence to suggest that this local experience helps them to do a better job of serving consumers.
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A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's Select one: a. brand awareness study, to assess national levels of awareness. b. results for other product lines, to see how important diet products are to the firm. c. implementation programs, to see if the promotion was handled consistently in the different stores. d. analysis of national trends in vitamins and herbal supplements, to help predict future sales. e. financial statements, to investigate current and past profits.
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C
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The first objective in the evaluate performance phase of the marketing planning process is to Select one: a. find ways to cut costs. b. adjust advertising allocations. c. determine whether to raise or lower prices. d. consider changing the target market. e. review implementation programs and results using metrics.
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E
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The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? Select one: a. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. b. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets. c. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. d. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company. e. Nike should consider exiting the athletic shoe market.
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D
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AN ___________ is a group of products that consumers may use together or perceive as similar in some way. Select one: a. promotional service b. SBU c. market segment d. product line e. STP
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D
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A former advertising campaign for GEICO Insurance used the slogan, "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's Select one: a. positioning strategy. b. product strategy. c. mission statement. d. market segmentation plan. e. customer excellence strategy.
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A
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The idea of value-based marketing requires firms to charge a price that Select one: a. prioritizes customer excellence above operational excellence. b. captures the value customers perceive that they are receiving. c. matches competitors' prices. d. covers costs and generates a modest profit. e. includes the value of the effort the firm put into the product or service.
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B
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Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through Select one: a. promotion. b. place. c. product. d. price. e. cost-based measures.
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A
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Which of the following is LEAST likely to provide a sustainable competitive advantage? Select one: a. achieving high levels of customer satisfaction b. creating an efficient supply chain c. using patented technology d. having a well-known brand name e. lowering prices
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E