Chapter 2 – Flashcard Questions And 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 firms 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 strategies specified in terms of the 4 P's
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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 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 STP 2implement the marketing mix using the 4 P'S
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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 2 questions: 1.what type of business is it? 2. 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 analysis; uses SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment on terms of its opportunities and threats
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STP
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segmentation, targeting and positioning. firms use this 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 firms 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 appreciate products or services geared especially for them
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Target Marketing
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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 the 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 value to a consumer and can be offered through a voluntary marketing exchange
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Strategic Business Unit
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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 or 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
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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 market 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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When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to Select one: a. evaluate performance and make adjustments. b. generate cost-based performance ratios. c. increase product excellence without reducing customer excellence. d. choose a business mission. e. develop segmentation strategies.
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a. evaluate performance and make adjustments.
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The idea of value-based marketing requires firms to charge a price that Select one: a. matches competitors' prices. b. captures the value customers perceive that they are receiving. c. includes the value of the effort the firm put into the product or service. d. covers costs and generates a modest profit. e. prioritizes customer excellence above operational excellence.
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b. captures the value customers perceive that they are receiving.
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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. positioning strategy. c. market segmentation strategy. d. business mission. e. customer excellence strategy.
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b. positioning strategy.
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After defining the business mission, what should a firm do next to develop a marketing plan? Select one: a. Perform a situation analysis. b. Develop a positioning strategy. c. Implement the four Ps. d. Conduct an STP analysis. e. Select a target market.
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a. Perform a situation analysis.
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Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in Select one: a. increased long term profits. b. a product development growth strategy. c. more clearly defined market segments. d. an operational advantage. e. opportunities for diversification.
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a. increased long term profits.
