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Marketing Ch. 2: Terms
Terms in this set (39)
A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.
sustainable competitive advantage
Something the firm can persistently do better than its competitors.
What are the Four Macro Strategies for Developing Customer Value?
This is achieved through efficient operations and excellent supply chain and human resource management. This can be achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers.
Having a good physical location and Internet presence. This is particularly important for retailers and service providers.
Focuses on retaining loyal customers and excellent customer service. This is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service.
Having products with high perceived value and effective branding and positioning. This occurs by providing products with high perceived value and effective branding and positioning.
A __________ is a 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 Ps, action programs, and projected or pro forma income (and other financial) statements
planning, implementation, and control
What are the three major phases of the marketing plan?
The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see also segmentation, targeting, and positioning) and (2) implement the marketing mix using the four Ps.
The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?
Second step in a marketing plan; 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.
A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.
Step 1: Define business mission and objectives.
Step 2: Conduct a situation analysis (SWOT) (Step 1 and 2 is part of the planning phase).
Steps 3: Identify and evaluate opportunities (Segmentation, Targeting, Positioning).
Step 4: Implement marketing mx and allocate resources. (Step 3 and 4 is part of the implementation phase).
Step 5: Evaluate performance using marketing metrics. (Step 5 is part of the control phase).
What are the 5 Steps of the Marketing Plan?
segmentation, targeting, and positioning (STP)
Firms use these processes to identify and evaluate opportunities for increasing sales and profits. The firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets.
A group of consumers who respond similarly to a firm's marketing efforts.
The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.
target marketing (or targeting)
The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
Integrated marketing communications (IMC)
Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.
A measuring system that quantifies a trend, dynamic, or characteristic.
strategic business unit (SBU)
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
Group of associated items, such as those that consumers use together or think of as part of a group of similar products.
________ is the percentage of a market accounted for by a specific entity, and is used to establish the product's strength in a particular market. It is usually discussed in units, revenue, or sales.
relative market share
A 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
___________, or the annual rate of growth of the specific market in which the product competes. Market growth rate thus measures how attractive a particular market is.
Stars, Question marks, Cash cows, Dogs.
What are the four quadrants in the Boston Consulting Group Matrix?
_______ (upper left quadrant) occur in high-growth markets and are high market share products. That is, they often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth.
________ (lower left quadrant) are in low-growth markets but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it.
___________ (upper right quadrant) appear in high-growth markets but have relatively low market shares; thus, they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. Managers must decide whether to infuse _______ with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products.
________ (lower right quadrant) are in low-growth markets and have relatively low market shares. Although they may generate enough resources to sustain themselves, they are not destined for "stardom" and should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes.
Market penetration, Product development, market development, diversification.
What are the Four Markets/Products and Services Strategies?
market penetration strategy
A growth strategy that employs the existing marketing mix and focuses on the firm's efforts on existing customers. Such a growth strategy might be achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit. This strategy generally requires greater marketing efforts, such as increased advertising and additional sales and promotions, or intensified distribution efforts in geographic areas in which the product or service already is sold.
market development strategy
A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
product development strategy
A growth strategy that offers a new product or service to a firm's current target market.
________ introduces a new product or service to a market segment that currently is not served.
Related diversification: A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.
Unrelated diversification: A growth strategy whereby a new business lacks any common elements with the present business. Unrelated diversifications do not capitalize on core strengths associated either with markets or with products. (Most risky).
What are the two different diversification strategies?
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