CHP 2 Developing Marketing Strategies and A Marketing Plan – Flashcards
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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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Customer excellence
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Involves a focus on retaining loyal customers and excellent customer service
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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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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 and (2) implement the marketing mix using the four Ps.
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Integrated marketing communications (IMC)
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Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.
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Locational excellence
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A method of achieving excellence by having a strong physical location and/or internet presence.
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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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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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Employs the existing marketing mix and focuses the firm's efforts on existing customers.
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Market positioning
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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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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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Market share
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Percentage of a market accounted for by specific entity
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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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Metric
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A measuring system that quantifies a trend, dynamic, or characteristic
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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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Operational excellence
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Involves a firm's focus on efficient operations, excellent supply chain management, and strong relationships with its suppliers
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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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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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Product excellence
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Involves a focus on achieving high-quality products; effective branding and positioning is key
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Product line
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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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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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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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Segmentation, targeting, and positioning (STP)
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Firms use these processes to identify and evaluate opportunities for increasing sales and profits
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Situation analysis
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2nd 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 term of its opportunities and threats
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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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Sustainable competitive advantage
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Something the firm can persistently do better than its competitors
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SWOT analysis
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A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its strengths and weaknesses and the external environment in term of its opportunities and threats are examined
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Target market/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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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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Organizational Culture
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Firms must instill good service over the long term to consumers, so it becomes part of the ____ and helps retain loyal customers.
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Identify the following terms included in a SWOT analysis.
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Strength. Weakness. Opportunities. Threats.
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The three major phases of the marketing plan are:
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Planning, implementation, and control
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Strengths
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Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential ____. These refer to internal attributes identified during a SWOT analysis.
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In portfolio analysis:
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Management evaluates the firm's various products and businesses. Management allocates its resources to products with the greatest potential to be profitable.
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Pricing is the only marketing activity that:
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brings in money
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If a firm has aging equipment that slows down productions, this is an example of a(n) ____ for the firm.
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Weakness. NOT Threat because threat is an external negative factor. The firm's equipment is an internal factor.
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What is true regarding market share?
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It is the percentage of a market accounted for by a specific entity. It defines a product's strength in a particular market.
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Loyalty programs
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Give firms the opportunity to learn more about their customers.
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Brand loyalty
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means that customers are reluctant to patronize competing firms.
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What do "threats" represent in SWOT analysis?
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The negative aspects of the company's external environment.
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Why do firms use metrics?
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To make appropriate adjustments to performance. To make it possible to compare results across regions, product lines, and time periods. To explain why things, happen.
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What does "strengths" refer to in SWOT analysis?
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The positive internal attributes of a firm.
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The Marketing Plan
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Step 1: Business Mission and Objectives Step 2: Situation analysis Step 3: STP Step 4: Marketing Mix, four Ps Step 5: Evaluate performance using marketing metrics
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Opportunities
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In a SWOT analysis, __ pertain to positive aspects of the external environment.
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Retailers
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Locational excellence is particularly important for which type of firms?
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Relative strength
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A relative market share is used to provide managers with a product's _____ _____.
