Chapter 9 Flashcards
(20 cards)
What are 3 major parts of marketing strategy?
- Segmentation
- Targeting
- Positioning
Define customer-focused value proposition
Clear reason why consumers should buy the product
What 3 factors are required to establish a position?
- Determine frame of reference
- Identify POD’s and POP’s
- Create a brand mantra
Define category membership
(set of) products with which a brand competes
Define industry
Group of firms who offer a product that are close substitutes for each other
Define points-of-difference
Benefits customers strongly associate with a brand
What 3 criteria are there for POD’s?
- Diserable for consumers
- Deliverable by company
- Differentiating from competitors
Define points-of-parity
Benefits that are not necessarily unique to the brand
In what 2 forms do POD’s come?
- Category POD’s (essential to offering)
- Competitive POD’s (overcome weakness)
Define brand mantra
A three-to-five word articulation of the brand’s heart and soul
Define competitive advantage
Company’s ability to perform in ways that competitors can or will not match
What 4 ways of differentiating are there in competitive markets?
- Employee differentiation (superior customer service)
- Channel differentiation (make buying easier, enjoyable)
- Image differentiation (powerful images appeal to needs)
- Services differentiation (more effective solutions)
What 3 ways are there to analyze potential competitive threats?
- Share of market (marketshare)
- Share of mind (firm name response in survey)
- Share of heart (firm name response in survey)
Define market followers
Medium market share, but does not take risk to obtain more market share
Define market nichers
Serve small segments that larger firms don’t reach
Define market leader
Largest market share, takes most risks and has most to gain of market expansion
What 3 strategies are there to expand total market demand?
- Market penetrating strategy (those who might use, but do not yet)
- New-market segment strategy (those who have never used it)
- Geographical-expansion strategy (those who live elsewhere)
What are the 6 defense strategies for market leaders?
- Position defense (occupying the most desirable market space in consumers minds)
- Flank defense
- Preemtive defense (attack so others won’t)
- Counteroffensive defense (meet attacker frontally)
- Mobile defense (Stretch into new territories)
- Contraction defense (give up weak markets and reinforce strong ones)
Before increasing market share, companies should 4 factors first:
- Possibility of provoking antitrust action
- Economic cost
- Pursuing the wrong marketing activities
- The effect of increased market share on actual and perceived quality
What 5 attack strategies are there?
- Frontal attack (match opponents product, ads and price)
- Flank attack (identify market gaps and fill them)
- Encirclement attack (capture large territory on several fronts)
- Bypass attack (bypass opponent in easier market)
- Guerrilla attack (harass the opponent with smart attacks)
