← Marketing chapter II Export Options Alphabetize Word-Def Delimiter Tab Comma Custom Def-Word Delimiter New Line Semicolon Custom Data Copy and paste the text below. It is read-only. Select All Marketing strategy Identifies(1) a firm's target market(s), (2) a related marketing mix-their four p's, and (3) the bases upon which the firms plans to build an sustainable competitive advantage. Sustainable competitive advantage An advantage over the competition that is not easily copied, and thus can be maintained over a long period of time. Building a sustainable competitive advantage Customer excellence, operational excellence, product excellence, locational excellence. Customer excellence Achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. Operational excellence Through efficient operations, excellent supply chain management, strong relationships with their suppliers, and excellent Human Resource management. Product excellence Having products with high perceived value and effective branding and positioning. Locational excellence Sustainable because it is not easily duplicated. Marketing plan Written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro-forma income. The three major phases of the marketing plan are planning, implementation, and control. Planning phase Marketing executives, in conjunction with other top managers, define the mission and/or vision of the business. Implementation phase Marketing managers identify and evaluate different opportunities by engaging in a process known as segregation, targeting, and positioning. Control phase Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions. STP Segmentation, targeting, and positioning. Control phase Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions. Mission statement A broad description of a firm's objectives and the scope of activities it plans to undertake. Sustainable competitive advantage Something the firm can persistently do better than its competitors. Situational analysis Using a SWOT analysis that assess both the interenal environment with regards to its strengths and weaknesses and the external environment in terms of its opportunities and threats. Market segment consisting of consumers who respond similarly to a firm's marketing efforts. Market segmentation The process of dividing the market into groups of customers with different needs, wants, or characteristics. Target marketing After a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue. Market positioning Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the produce does or represents in comparison with competing products. Products Include services , constitute the first of the four p's. Cost-based pricing When a firm determines the costs of producing or providing its product and then adds a fixed amount about that total to arrive at the selling price. Competitor based pricing When a firm prices below, at, or above its competitors' offerings. Value-based pricing Which the firm firm first determines the perceived value of the product from the customer's point of view and then prices accordingly. Strategic business unit(SBU) or product line understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. Market share Percentage of a market accounted for by a specific entity. Relative market share A special type of market share metric is used in this application because it provides managers with a product's relative strength, compared to that of the largest firm in the industry. Market growth rate The annual growth of the specific market in which the product competes. Stars Upper left quadrant. Occur in high-growth markets and are high market share products. Cash cows Lower left quadrant. Low-growth but are high market share products. Question marks Upper right quadrant. Appear in high-growth markets but have relatively low market share Dogs Low right quadrant. In low-growth markets and have relatively low market shares. Market penetration strategy Employs the existing marketing mix and focuses on the firm's efforts on existing customers. Market development strategy Employs the existing marketing offering to reach new market segments, whether domestic or international. Product development strategy Offers a new product or service to a firm's current target market. Diversification strategy Introduces a new product or service to a market segment that currently is not served. Scenario planning Integrates information obtained as part of the situation and opportunity analysis steps of the marketing plan to better understand the potential performance outcomes associated with different marketing mix applications.