Marketing Chapter 18
Marketing Vocabulary for Test 5
Terms in this set (24)
An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices, than competitors do.
The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
Competitive marketing strategies
Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage.
A group of firms in an industry following the same or a similar strategy.
The process of comparing the company's products and processes to those of competitors or leading firms in other industries to identify "best practices" and find ways to improve quality and performance.
Customer value analysis
Analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers.
Involves visualizing an opportunity and constructing and implementing flexible strategies.
Involves developing formal marketing strategies and following them closely.
Involves the attempt to reestablish an internal entrepreneurial spirit and refresh marketing strategies and approaches.
Overall Cost Leadership Strategy
A company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share.
When a company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader.
When a company focuses its effort on serving few market segments well rather than going after the whole market.
Middle of the Road
Companies without a clear strategy, try to be good on all strategic counts but end up being no very good at anything.
Refers to a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system
Refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs
of the targeted customers.
Refers to a company providing superior value by offering a continuous stream of
leading‐edge products or services. Product leaders are open to new ideas and solutions and bring them quickly to the market.
The firm in an industry with the largest market share.
A runner-up firm that is fighting hard to increase its market share in an industry.
A runner-up firm that wants to hold its share in an industry without rocking the boat.
A firm that serves small segments that the other firms in an industry overlook or ignore.
Second Mover Advantage
Challenger observes what has made the leader successful and improves on it.
A company whose moves are mainly based on competitors' actions and reactions.
A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers.
Market-centered company (targeting)
A company that pays balanced attention to both customers and competitors in designing its marketing strategies.