Ch 2 - Developing Marketing Strategies and a Marketing Plan

Question 1

Marketing strategy

Answer 1

it identifies

1. A firm’s target market(s)
2. A related marketing mix (the four Ps)
3. The bases upon which the firm plans to build a sustainable competitive advantage

Question 2

Sustainable competitive advantage -

Answer 2

something that the firm can persistently do better than its competitors that is not easily copied and thus can be maintained over a long period of time

• valuable, rare, imitable (cannot be copied), organized (economies of scale, allocated resources)

Question 3

Developing Customer Value

Answer 3

• customer excellence
• operational excellence
• product excellence
• locational excellence

Question 4

Customer Excellence -

Answer 4

achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service

Question 5

Retaining loyal customers -

Answer 5

having a strong brand, unique merchandise and superior customer service all helps solidify a loyal customer base - create emotional attachment through loyalty programs

Question 6

Operational excellence

Answer 6

• achieved through efficient operations and excellent supply chain and human resource management
• Ensure good value to their customers while earnings profits

Question 7

Product Excellence

Answer 7

• occurs by having products with high perceived value and effective branding and positioning

Question 8

Locational Excellence -

Answer 8

important for retailers and service providers

• A competitive advantage based on location is sustainable because it is not easily duplicated

Question 9

Marketing Plan Steps

Answer 9

1. Business Mission and Objectives
2. Situation Analysis
3. Identify Opportunities
4. Implement Marketing Mix
5. Evaluate Performance by Using Marketing Metrics

Question 10

Planning Phase

Answer 10

Step 1 and 2

Question 11

Implementation phase

Answer 11

step 3 and step 4

Question 12

Control phase

Answer 12

step 5

Question 13

Step 1: Business Mission & Objectives

Answer 13

where marketing executives and other top managers define the mission and objectives of the business

Question 14

Step 2: Situation Analysis

Answer 14

• evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm’s potential for success
• SWOT - capabilities, strategies, performance, strengths, weaknesses

Question 15

Step 3: Identify Opportunities

Answer 15

Where marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning

Question 16

Market segmentation -

Answer 16

the process of dividing the market into distinct groups of customers

Question 17

Target marketing/ target -

Answer 17

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

Question 18

Market positioning -

Answer 18

involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products

Question 19

Step 4: Implement Marketing Mix

Answer 19

implement the marketing mix by using the four Ps

Question 20

Step 5: Evaluate Performance by Using Marketing Metrics

Answer 20

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

Question 21

Metric

Answer 21

a measuring system that quantifies a trend, dynamic, or characteristic - used to explain why things happen and to project the future

Question 22

Financial Performance Metrics -

Answer 22

revenues, sales, or profits

Question 23

Social Responsibility Performance Metrics -

Answer 23

impact on environment, diversify their workforce, policies protecting human rights

Question 24

Growth Strategies

Answer 24

• market penetration
• market development
• product development
• diversification

Question 25

Market Penetration -

Answer 25

a growth strategy that employs the existing marketing mix and focuses on the firms efforts on existing customers - Increased advertising, additional sales and promotions, or intensified distribution efforts in geographic areas in which the product is already sold

Question 26

Market Development -

Answer 26

- a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international of segments not currently served by the firm

Question 27

Product Development -

Answer 27

- a growth strategy that offers a new product or service to a firm's current target market Ex - marvel launching netflix series

Question 28

Diversification

Answer 28

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

Question 29

Related diversification opportunity

Answer 29

the current target market and or marketing mix shares something in common with the new opportunity

Question 30

Unrelated diversification -

Answer 30

the business lacks any common elements with the present business - do not capitalize on core strengths associated with markets or with products - considered risky