Ch 2 – Flashcard Test Answers
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Marketing strategy
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A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.
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Sustainable Competitive Advantage
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Something the firm can persistently do better than its competitors.
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Customer excellence
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Involves a focus on retaining loyal customers and excellent customer service.
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Operational excellence
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Involves a firm's focus on efficient operations and excellent supply chain management.
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Product excellence
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Involves a focus on achieving high-quality products; effective branding and positioning is key.
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Location
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A method of achieving excellence by having a strong physical location and/or Internet presence.
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Marketing plan
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A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
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Planning phase
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The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
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Implementation phase
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The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps.
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Control phase
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The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
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Mission statement
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A broad description of a firm'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?
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Situation Analysis
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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.
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STP
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The processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.
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Market segment
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A group of consumers who respond similarly to a firm's marketing efforts.
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Market segmentation
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The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.
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Target marketing/targeting
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The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
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Market positioning
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Involves the process of defining 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.
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Products
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Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
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Metric
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A measuring system that quantifies a trend, dynamic, or characteristic.
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Strategic Business Unit (SBU)
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A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
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Product lines
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Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
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Market share
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Percentage of a 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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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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A growth strategy that 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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Supply chain efficiency, a strong brand name, and customer satisfaction are likely to be sources of a
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Sustainable competitive advantage
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Although competitors can copy or match the goods and services a firm offers, the firm can still develop a sustainable competitive advantage through ____ if it its products have a high perceived value and effective branding or positioning
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Product excellence
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A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four Ps, action plans, and pro forma financial statements is known as
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Marketing plan
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Of the five steps to the strategic marketing planning process, which step usually comes first?
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Define the business mission
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A SWOT analysis is part of a firm's situation audit. SWOT is an acronym for
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Strengths, Weaknesses, Opportunities, and Threats
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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
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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.
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Implementation
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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 financial measures. Frederic will use a series of ____, which are measuring systems that quantify a trend, dynamic, or characteristic.
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Metrics
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Chuck hear his unit described as a dog. He later found out that meant
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The products in his unit are in a low-growth market with low market share and will be phased out.
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Which of the following is one of the four major growth strategies marketers typically pursue?
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Market development
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What are the 4 macro strategies that focus on marketing mix to create and deliver value and develop sustainable competitive advantage?
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1. Product Excellence 2. Customer Excellence 3. Operational Excellence 4. Locational Excellence
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What are the three phases in the marketing plan
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1. Planning 2. Implementation 3. Controlling
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Planning phase
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1. Mission 2. Situation Analysis
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Implementation phase
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STP Marketing mix
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Controlling phase
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metrics
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Portfolio analysis A popular method is the
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BCG Matrix x axis - market share y axis - market growth rate
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Cash Cows
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H market share L market growth; Use cash to invest in stars and question marks
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Stars
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H market share H market growth; require heavy resource investment; eventually will become cash cows
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Question marks
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L market share H market growth; Invest to transfer them into stars or divest
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Dogs
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Low market share L market growth; sold off or liquidated (don't be this)
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What are the 4 growth strategies and explain them
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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 Diversification - new markets and new products and services
