Marketing Management Chapter 2 (Kotler Keller) – Flashcards
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The Value Delivery Process
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1. Choosing the value 2. Providing the value 3. Communicating the value
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The Value Chain
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A tool for identifying ways to create more customer value.
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What are the five core business processes?
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1. Market-sensing process 2. New offering realization process 3. Customer acquisition process 4. CRM process 5. Fulfillment management process
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Market-sensing process
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Gathering and acting on new information about the market
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New offering realization process
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Researching, developing, and launching new offerings quickly and within budget
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Customer acquisition process
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Defining and targeting markets and prospecting for new customers
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Customer relationship management process
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Building deeper understanding, relationships ,and offerings to individual customers
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Fulfillment management process
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Receiving and approving orders, shipping and collecting payment
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What are the characteristics of a core competency?
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1. A source of competitive advantage and makes a significant contribution to perceived customer benefits 2. Has applications in a wide variety of markets 3. Difficult for competitors to imitate
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Key areas in strategic planning
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1. Managing the business as an investment portfolio 2. Assessing the market's growth rate and the company's position in that market 3. Establish a strategy
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What is a marketing plan and how does it operate?
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The central instrument for directing and coordinating the marketing effort. Operates at two levels: strategic and tactical.
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Strategic Marketing Plan
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Lays out the target market and the firms value proposition
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Tactical Marketing Plan
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Specifies the marketing tactics including product features, promotion, merchandising, pricing, sales channels, and service.
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Strategic Planning Activities
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1. Define corporate mission 2. Establish strategic business units 3. Assign resources to each business unit 4. Assess growth opportunities
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Characteristics of a good mission statement
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Focus on limited number of goals Stress company's major policies and values Define the major competitive spheres within which the company will operate Take a long term view Short, memorable, and meaningful
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Characteristics of a Strategic Business Unit
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A single business unit, or a collection of related businesses, that can be planned separately from the rest of the company. Has its own set of competitors Has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit
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Intensive Growth Strategies
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1. Market penetration 2. Market development 3. Product development 4. Diversification
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Market Penetration Strategy
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Can we gain more market share with current product in our current market?
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Market Development Strategy
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Ca we find or develop new markets for our current product?
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Product Development Strategy
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Can we develop new products for current markets?
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Integrative Growth
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A company can increase sales and profits through backward, forward, or horizontal integration within its industry
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Backward Integration
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Acquire suppliers
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Forward Integration
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Acquire wholesalers or retailers
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Horizontal Integration
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Acquire competitors
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Market opportunity - 3 main sources
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Offer something that is in short supply Supply an existing product in a more superior way Offer a totally need product
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Goal formulation
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Must be arranged hierarchically, from most to least important Objectives should be quantitative whenever possible Goals should be realistic Objectives should be consistent
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Three types of strategies
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1. Overall cost leadership 2. Differentiation 3. Focus
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Cost Leadership
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Achieve the lowest cost to win market share
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Differentiation
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Achieve superior performance in an area valued by a large part of the market
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Focus
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Focus on one or more narrow market segments, get to know them intimately, and pursue either cost leadership or differentiation strategy
