Strategic Marketing framework – Flashcards

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Strategic planning
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is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
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Purpose of strategic planning
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to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment
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Complete Marketing Strategy
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Objectives consumer targets competitor targets core strategy implementation: marketing mix
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implementation: Marketing Mix
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Price, communications and promotions, product policy, channels of distribution ,customer relationship management
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mission statement
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is the organization's purpose, what it wants to accomplish in the larger environment
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Market-oriented mission statement
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defines the business in terms of satisfying basic customer needs
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Market-Oriented Business Definitions
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Company: amazon.com Product -oriented defintion: we sell books, videos, cds, toys, consumer electronics, hardware, housewares, and other products Market oriented definition: We make the internet buying experience fast, easy, and enjoyable- we're the place where you can find and discover anything you want to buy online
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Product Marketing Expansion Grid: Existing markets and existing products
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Market Penetration
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Product Marketing Expansion Grid: Existing markets and New Products
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Product Development
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Product Marketing Expansion Grid: New Markets and Existing Products
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Market Development
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Product Marketing Expansion Grid:New Markets and New Products
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Diversification
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Marketing Strategy: Core Strategy
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-Value Proposition -Differentiation - Product Positioning
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Core Strategy: Value Proposition
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Summarizes into a single paragraph: -The customer -The competitive targets -The customer's reason for buying your brand. Forms the basis for the marketing mix.
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Core Strategy:Differentiation
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Competitive advantages (CA) should have three characteristics: 1. CA should generate customer value. 2. Increased value must be perceived by the consumer. 3.CA should be difficult to copy.
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General Approaches to Creating Competitive Advantage
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-Cost-based or price-based advantage -Quality-based or differentiation advantage -Perceived quality or brand-based advantage
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Core Strategy: Product Positioning
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-Positioning creates a clear image in the mind of the consumer of what the product stands for and how it is different from competitive offerings. -Repositioning can be difficult when the brand has high awareness.
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The Product Life Cycle
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-Introduction -Growth -Maturity -Decline
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The Product Life Cycle:Introduction:
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Category Size: Small Category Growth: Low- High
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The Product Life Cycle:Introduction Characteristics:
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-Product: one brand that pioneered the category. -Selling & advertising: focuses on generic product. -Pricing: penetration or skimming. -Distribution: limited as product is unproven. Often offers a first-mover advantage.
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The Product Life Cycle:Growth
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Category Size: Moderate Category Growth: High
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The Product Life Cycle:Growth Characteristics:
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>Growing competition >Price pressure >Distribution pressure >Communications stress differentiation >Market segmentation. -Strategic options vary according to whether firm is a market leader or a market follower.
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Growth Stage Strategic Options: Market Leader
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-Fight (maintain) -Fight (enhance) -Flee (give up market leadership)
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Growth Stage Strategic Options: Market Follower
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-Exit the market -Imitate the leader -Fortify position -Leapfrog the competition
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The Product Life Cycle:Maturity
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Category Size: Large Category Growth: Low
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The Product Life Cycle:Maturity Characteristics
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>Few new buyers >Sophisticated consumers >Differential advantage obtained through: >>Intangibles >>Perceived qualities >>Packaging, service, or distribution innovation. >Well-defined segments.
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Maturity Stage Strategic Options:Market Leader
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-Invest enough to maintain current position -Harvest cash for short-term
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Maturity Stage Strategic Options:Market Follower
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-Depends on leader's strategy, but may: >Pursue #1 position >Stay in #2 slot >Exit category
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The Product Life Cycle:Decline
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Category Size: Moderate Category Growth: Negative -Many strategies for reviving mature product categories can be applied to those in decline. -Sometimes product categories revive due to serendipity. -Being the "last iceman" in a truly dying market can be profitable.
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question
Strategic planning
answer
is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
question
Purpose of strategic planning
answer
to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment
question
Complete Marketing Strategy
answer
Objectives consumer targets competitor targets core strategy implementation: marketing mix
question
implementation: Marketing Mix
answer
Price, communications and promotions, product policy, channels of distribution ,customer relationship management
question
mission statement
answer
is the organization's purpose, what it wants to accomplish in the larger environment
question
Market-oriented mission statement
answer
defines the business in terms of satisfying basic customer needs
question
Market-Oriented Business Definitions
answer
Company: amazon.com Product -oriented defintion: we sell books, videos, cds, toys, consumer electronics, hardware, housewares, and other products Market oriented definition: We make the internet buying experience fast, easy, and enjoyable- we're the place where you can find and discover anything you want to buy online
question
Product Marketing Expansion Grid: Existing markets and existing products
answer
Market Penetration
question
Product Marketing Expansion Grid: Existing markets and New Products
answer
Product Development
question
Product Marketing Expansion Grid: New Markets and Existing Products
answer
Market Development
question
Product Marketing Expansion Grid:New Markets and New Products
answer
Diversification
question
Marketing Strategy: Core Strategy
answer
-Value Proposition -Differentiation - Product Positioning
question
Core Strategy: Value Proposition
answer
Summarizes into a single paragraph: -The customer -The competitive targets -The customer's reason for buying your brand. Forms the basis for the marketing mix.
question
Core Strategy:Differentiation
answer
Competitive advantages (CA) should have three characteristics: 1. CA should generate customer value. 2. Increased value must be perceived by the consumer. 3.CA should be difficult to copy.
question
General Approaches to Creating Competitive Advantage
answer
-Cost-based or price-based advantage -Quality-based or differentiation advantage -Perceived quality or brand-based advantage
question
Core Strategy: Product Positioning
answer
-Positioning creates a clear image in the mind of the consumer of what the product stands for and how it is different from competitive offerings. -Repositioning can be difficult when the brand has high awareness.
question
The Product Life Cycle
answer
-Introduction -Growth -Maturity -Decline
question
The Product Life Cycle:Introduction:
answer
Category Size: Small Category Growth: Low- High
question
The Product Life Cycle:Introduction Characteristics:
answer
-Product: one brand that pioneered the category. -Selling & advertising: focuses on generic product. -Pricing: penetration or skimming. -Distribution: limited as product is unproven. Often offers a first-mover advantage.
question
The Product Life Cycle:Growth
answer
Category Size: Moderate Category Growth: High
question
The Product Life Cycle:Growth Characteristics:
answer
>Growing competition >Price pressure >Distribution pressure >Communications stress differentiation >Market segmentation. -Strategic options vary according to whether firm is a market leader or a market follower.
question
Growth Stage Strategic Options: Market Leader
answer
-Fight (maintain) -Fight (enhance) -Flee (give up market leadership)
question
Growth Stage Strategic Options: Market Follower
answer
-Exit the market -Imitate the leader -Fortify position -Leapfrog the competition
question
The Product Life Cycle:Maturity
answer
Category Size: Large Category Growth: Low
question
The Product Life Cycle:Maturity Characteristics
answer
>Few new buyers >Sophisticated consumers >Differential advantage obtained through: >>Intangibles >>Perceived qualities >>Packaging, service, or distribution innovation. >Well-defined segments.
question
Maturity Stage Strategic Options:Market Leader
answer
-Invest enough to maintain current position -Harvest cash for short-term
question
Maturity Stage Strategic Options:Market Follower
answer
-Depends on leader's strategy, but may: >Pursue #1 position >Stay in #2 slot >Exit category
question
The Product Life Cycle:Decline
answer
Category Size: Moderate Category Growth: Negative -Many strategies for reviving mature product categories can be applied to those in decline. -Sometimes product categories revive due to serendipity. -Being the "last iceman" in a truly dying market can be profitable.