Chapter 2: Developing Marketing Strategies and a Marketing Plan – Flashcards

A marketing strategy identifies (1) a firm's target market(s), (2) a related marketing mix (four P's), and (3) the bases on which the firm plans to build a sustainable competitive advantage. firms use four macro strategies to build their sustainable competitive advantage. Customer excellence focuses on retaining loyal customers and excellent customer service. Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Product excellence entails having products with high perceived value and effective branding and positioning. Finally, locational excellence entails having a good physical location and Internet presence.

A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.

Something the firm can persistently do better than its competitors, includes customer, operational, product, and/or location excellence.

Identifies a firm's target market, related marketing mix (their four P's), and the bases upon which the firm plans to build a sustainable competitive advantage.

Customer excellence, Operational excellence, Product excellence, and Locational excellence

A marketing plan is composed of an analysis of the current marketing situation, its objectives, the strategy for the four P's, and appropriate financial statements. A marketing plan represents the output of a three-phase process: planning, implementation, and control. the planning phase requires managers to define the firm's mission and vision and assess their firm's current situation. It helps answer the questions, "What business are we in now, and what do we intend to be in the future?" In the second phase, implementation, the firm specifies, in more operational terms, how it plans to implement its mission and vision. Specifically, to which customer groups does it wish to direct its marketing efforts, and how does it use its marketing ix to provide good value? Finally, in the control phase, the firm must evaluate its performance using appropriate metrics to determine what worked, what didn't, and how performance can be improved in the future.

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 P's, action programs, and projected or pro forma income (and other financial) statements.

The part of the strategic marketing planning process when marketing executives, in conjunction with other top manager, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside of the organization, affect the firm's potential for success.

The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (STP) and (2) implement the marketing mix using the four P's.

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs during the second step in the strategic planning process, the situation analysis. By analyzing what the firm is good at (its strengths), where it could improve (its weaknesses), where in the marketplace it might excel (its opportunities), and what is happening in the marketplace that could harm the firm (its threats), managers can assess their firm's situation accurately and plan its strategy accordingly.

Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths, Weaknesses and the external environment in terms of Opportunities and Threats.

Once a firm identifies different marketing opportunities, it must determine which are the best to pursue. To accomplish this task, marketers go through a segmentation, targeting, and positioning (STP) process. Firms segment various markets by dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them. After identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm's perceived ability to satisfy the needs of those groups better than competitors and do so profitably. to complete the STP process, firms position their products or services according to the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product or service does or represents relative to competing products or services.

The process of segmentation, targeting, and positioning that firm's use to identify and evaluate opportunities for increasing sales and profits.

A group of consumers who respond similarly to a firm's marketing efforts.

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.

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

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.

The marketing mix consists of the four P's--product, price, promotion, and place--and each P contributes to customer value. To provide value, the firm must offer a mix of products and services at prices their target markets will view as indicating good value. Thus, firms make trade-offs between the first two P's, product and price, to give customers the best value. The third P, promotion, informs customers and helps them form a positive image about the firm and its products and services. The last P, place, adds value by getting the appropriate products and services to customers when they want them and in the quantities they need.

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

A measuring system that quantifies a trend, dynamic, or characteristic.

Portfolio analysis is a management tool used to evaluate the firm's various products and businesses--its portfolio--and allocated resources according to which products are expected to be the most profitable for the firm in the future. A popular portfolio analysis tool developed by the Boston Consulting Group classifies all products into four categories. The first,stars, are in high-growth markets and have high market share. The second, cash cows, are in low-growth markets but have high market share. These products generate excess resources that can be spun off to products that need them. The third category, question marks, are in high-growth markets but have relatively low market shares. These products often use the excess resources generated by the cash cows. The final category, dogs, are in low-growth markets and have relatively low market shares. These products are often phased out.

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.

Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.

Percentage of a market accounted for by the specific entity.

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 n the industry.

The annual rate of growth of the specific market in which the product competes.

Business mission and objectives, situation analysis and SWOT, identify opportunities, implement marketing mix, evaluate performance using marketing metrics.

SWOT analysis (strengths, weaknesses, opportunities, threats).

Segmentation, Targeting, Positioning.

Stars, Cash Cows, Question Marks, Dogs.

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.

Firms use four basic growth strategies: market penetration, market development, product development, and diversification. A market penetration strategy directs the firm's efforts toward existing customers and uses the present marketing mix. In other words, it attempts to get current customers to buy more. I a market development strategy, the firm uses its current marketing mix to appeal to new market segments, as might occur in international expansion. A product development growth strategy involves offering a new product or service to the firm's current target market. Finally, a diversification strategy takes place when a firm introduces a new product or service to a new customer segment. Sometimes a diversification strategy relates to the firm's current business, such as when a women's clothing manufacturer starts making and selling men's clothes, but a more risky strategy is when a firm diversifies into a completely unrelated business.

A growth strategy that offers a new product or service to a firm's current target market.

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.

A growth strategy whereby a new business lacks any common elements with the present business.

Market penetration, Market development, Product development, Diversification.

Market penetration and Product development.

Diversification; Market penetration.