Chapter 2

Question 1

marketing strategy def and objective

Answer 1

identifies:
-a firm’s target market
-marketing mix (four Ps)
-bases on which the firms plans to build a sustainable competitive advantage:
-customer excellence
- operational excellence
-product excellence
locational excellence

Question 2

what can be a source of competitive advantage?

Answer 2

1. Cost Leadership
   Definition: Being the lowest-cost producer in the industry.
   Example: Companies like Walmart or Ryanair use cost leadership to offer lower prices, attracting price-sensitive customers.
2. Differentiation
   Definition: Offering unique products or services that stand out from competitors in terms of quality, features, or customer experience.
   Example: Apple differentiates its products through design, technology, and user experience.
3. Innovation
   Definition: Introducing new products, services, or business models that meet customer needs in unique ways.
   Example: Tesla’s innovation in electric vehicles and autonomous driving technology gives it an edge in the automotive industry.
4. Brand Reputation
   Definition: A strong, positive brand perception can influence consumer choice and loyalty.
   Example: Luxury brands like Rolex and Louis Vuitton benefit from their reputation for quality and exclusivity.

Question 3

VRIO table??

Question 4

how to develop customer value (4 aspects)

Answer 4

product excellence, customer excellence, operational excellence, location excellence

Question 5

review marketing plan 101

Question 6

what’s in a swot analysis and when is it used.

Answer 6

strengths, weaknesses, opportunities, threats
during the situation analysis of the planning process

Question 7

explain the STP marketing process

Answer 7

segmentation: dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them

targeting: targets, certain groups on the basis of the firm’s perceived ability to satisfy the needs of those groups better and more profitably than competitors.

positioning: firms position their products or services according to the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product or service does or represents relative to competing products or services.

Question 8

Describe the elements of a marketing plan

Answer 8

-analysis of current marketing situation, objectives, strategy for the four Ps, appropriate financial statements
-represents the output of
planning:
define firm’s mission and vision. managers conduct a situation analysis to evaluate how various players, both inside and outside the organization, affect the firm’s potential for success.
implementation:
identifies and evaluates different opportunities through STP process, develops marketing mix, allocating resources, designing marketing organization, develops schedules and action plans.
control:
evaluates its performance to determine what worked or not and how performance can be improved in future.

Question 9

what strategies do firms use to grow their businesses

Answer 9

1. market penetration: directs the firm’s efforts toward existing customers and uses the present marketing mix; attempts to get current customers to buy more
2. market development: uses its current marketing mix to appeal to new market segments, as might occur in international expansion.
3. product development: offering a new product or service to the firm’s current target market.
4. diversification: introduces a new product or service to a new customer segment.