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29 terms

Marketing (Grewal/Levy) Chapter 2

STUDY
PLAY
marketing strategy
(1) a firm's target market, (2) marketing mix, and (3) a method of obtaining a sustainable competitive advantage
sustainable competitive advantage
something the firm can persistently do better than its competitors
operational excellence
involves a firm's focus on efficient operations and excellent supply chain management
product excellence
involves a focus on achieving high-quality products, effective branding and positioning is key
locational excellence
a method of achieving excellence by having a strong physical location and/or Internet presence
marketing plan
a written document composed of an analysis o the current marketing situation, opportunities and threats for the firm, marketing objectives, and strategy specified in terms of the 4 P's, action programs, and projected of pro forma income (and other financial statements)
planning phase
the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers 1) define the mission or vision of business and 2) evaluate the situation by assessing how various players affect the firm's potential
implementation phase
the part of the strategic marketing planning process when marketing managers 1) idnetify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and 2) implement the marketing mix using the 4 P's
control phase
when managers evaluate the performance of the marketing strategy and take any necessary corrective actions
mission statement
broad description of a firm's objectives and the scope of activities it plants to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish it's goals/objectives?
situation analysis
uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats
STP
segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
market segment
a group of consumers who respond similarly to a firm's marketing efforts
market segmentation
process of dividig the market into groups of customers with different needs, wants, or characteristics--who therefore might appreciate products or services geared especially toward them
target marketing
process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
marketing positioning
involves the process of defining the marketing mix variables so that target customers have a clear, distinct, and desirable understanding of what the product does or represents in comparison with competing products
products
anything that is of value to a consumer and can be offered through a voluntary marketing exchange
metric
measuring system that quantifies a trend, dynamic, or charactertistic
strategic business unit (SBU)
division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission
product line
groups of associated items, such as those that consumers use together or think of as part of a group
market share
% of a market accounted for by a specific entity
relative market share
measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry
market growth rate
the annual rate of growth of the specific market in which the product competes
market penetration strategy
growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers
market development strategy
growth strategy that employs the existing marketing offering to reach new market segments, domestic or international
product development strategy
growth strategy that offers a new product or service to a firm's current target market
diversification strategy
growth strategy in where a firm introduces a new product or service to a market segment it doesn't currently serve
related diversification
growth strategy where the current target market and marketing mix shares something in common with the new opportunity
unrelated diversification
growth strategy where new business lacks an common elements with the present business