Principles of Marketing ch 2 – Flashcards
Unlock all answers in this set
Unlock answersquestion
What is the organization's main activity? How will it reach its goals?
answer
Strategic Marketing Management
question
-Strategic business units -Maketing plan -Strategic alternatives
answer
Answer to strategic marketing management questions:
question
the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities
answer
Strategic Planning
question
long- term profitability and growth
answer
Goal of strategic planning:
question
-a distinct mission and specific target market -control over its resources -its own competitors -plans independent of other SBU's
answer
Strategic Business Units (SBU's)
question
Market penetration Market Development Product Development Diversification
answer
Ansoff's Opportunity Mix
question
Increase market share among existing customers
answer
Market Penetration
question
attract new customers to existing products
answer
Market Development
question
create new products for present markets
answer
Product Development
question
introduce new products into new markets
answer
Diversification
question
a tool for allocating resources among products or strategic business units on the basis of relative market share
answer
Portfolio Matrix
question
Build SBU's with star potential Hold successful Cash Cows Harvest all SBU's except stars Divest problem children and dogs
answer
Portfolio Market Strategies
question
Business Position (horizontal axis) Market Attractiveness (vertical axis)
answer
General Electric Model
question
how well positioned the organization is to take advantage of market opportunities (low- medium- high)
answer
Business Position
question
measures the attractiveness of a market (low- medium- high)
answer
Market Attractiveness
question
What--> strategic planning Why--> long term profitability and growth How--> write a marketing plan
answer
The Importance of Strategic Marketing
question
Planning, marketing planning, marketing plan
answer
What is a Marketing Plan
question
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
answer
Planning
question
designing activities relating to marketing objectives and the changing of marketing environment
answer
Marketing Planning
question
a written document that acts a a guidebook of marketing activities for the marketing
answer
Marketing Plan
question
Business Mission--> Objectives--> situation or SWOT analysis--> Marketing Strategy (target marketing strategy & marketing mix)--> implementation evaluation control
answer
Marketing Plan Elements
question
Answers the question, "What business are we in, and where are we going?" Focuses on the market rather than the good or service Strategic Business Units may also have a mission statement
answer
Mission Statement
question
too narrow---> marketing myopia too broad---> no direction just right---> focus on marketing served and benefits customers seek
answer
Business Mission Statement
question
Things the company does well Things the company does not do well conditions in the external environment that favor strengths Conditions in the external environment that do not relate to existing strengths or favor areas oaf current weakness
answer
SWOT Analysis
question
things the company does well & things the company does not do well
answer
Internal of SWOT analysis
question
conditions in the external environment that favor strengths & conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
answer
External of SWOT analysis
question
production costs marketing skills financial resources company or brand image employee capabilities technology
answer
Components of a Situation Analysis (Internal)
question
social demographic economic technological political/ legal competitive
answer
Components of a Situation Analysis (External)
question
the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
answer
Environmental Scanning
question
the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
answer
Competitive Advantage
question
cost, product/ service differentiation, niche strategies
answer
Types of competitive advantage
question
being the low- cost competitor in an industry while maintaining satisfactory profit margins
answer
Cost Competitive Advantage
question
obtain inexpensive raw materials create efficient plant operations design products for ease of manufacturer control overhead costs avoid marginal customers
answer
Cost Competitive Advantage Aspects
question
experience curves efficient labor no- frills production government subsidies product design reengineering production innovations new service delivery methods
answer
Sources of Cost Reduction
question
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competition's
answer
Product/ Service Differentiation
question
Brand names Strong dealer network Product Image Service
answer
Examples of Product/ Service Differentiators
question
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
answer
Niche Competitive Advantage
question
used by small companies with limited resources may be used in a limited geographic market product line may be focused on a specific product category
answer
Niche Competitive Advantage Aspects
question
Sustainable competitive advantage is an advantage that cannot be copied by the competition A firm that has successfully achieved a competitive advantage will stake out a position unique in some manner from its rivals
answer
Building Sustainable Competitive Advantage
question
Patents Copyrights Locations Equipment Technology Customer Service Promotion
answer
Sources of Sustainable Competitive Advantage
question
a statement of what is to be accomplished through marketing activities
answer
Marketing Objective
question
Realistic- Attainable Measurable Time specific Compared to a benchmark
answer
Marketing Objectives
question
1. communicate marketing management philosophy 2. provide management 3. motivate employees 4. force executives to think clearly 5. form a basis for control
answer
Criteria for Good Market Objectives
question
the activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets
answer
Marketing Strategy
question
segment the market based on groups with similar characteristics analyze the market based on attractiveness of market segments select one or more target markets
answer
Target Market Strategy
question
1. Appeal to the entire market with one marketing mix 2. Concentrate on one marketing segment 3. Appeal to multiple markets with multiple marketing mixes
answer
Target Market Strategies
question
a unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
answer
The Marketing Mix is...
question
tangible goods services places ideas
answer
Products can be...
question
-product availability where and when customers want them -all activités from raw materials to finished products -ensure products arrive in usable condition at designated place when needed
answer
Place
question
role is to bring about exchanges with target markets by: informing, educating, persuading, reminding
answer
Promotion
question
what the buyer must give up to obtain a product the most flexible of the "4 P's"-- quickest to change competitive weapon price x units sold= total revenue
answer
Price
question
Implementation Evaluation & Control Marketing Audit (comprehensive, systematic, independent, periodic)
answer
Following Up on the Marketing Plan
question
1. Profile and make recommendations about weaknesses and inhibiting factors as well as strengths and new opportunities 2. Ensure that the role of the audit has been clearly communicated 3. Make someone accountable for implementing recommendations
answer
Post Audit Tasks
question
Continual attention, creativity, management commitment---> effective strategic planning
answer
Techniques for Effective Strategic Planning
