Marketing 201 Chapter 2

marketing strategy
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
customer excellence
involves a focus on retaining loyal customers and excellent customer service
customer service
the assistance and advice provided by a company (by real people) to those people who buy or use its products or services
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
location
a method of achieving excellence by having a strong physical location and/or internet presence
five steps of the marketing plan
1. define the business mission and objectives (planning phase)
2. situation analysis (planning phase)
3. identify opportunities (implementation phase)
4. implement marketing mix (implementation phase)
5. evaluate performance using marketing metrics (control phase)
step 1 of marketing plan
define the mission statement, a broad description of a firm’s objectives and the scope of activities it plans to undertake
what type of business are we?
what do we need to do to accomplish our goals and objectives?
mission statement
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?
step 2 of marketing plan
conduct a situation analysis
assess the internal environment and external environment with regard to SWOT
step 3 of marketing plan
identifying and evaluating opportunities using Segmentation, Targeting, and Positioning
planning phase
the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers define the mission or vision of the business, and evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success
STP
the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
divides 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 meet the needs of those chosen target’s best
market segment
a group 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-who therefore might appreciate products or services geared especially for them
target marketing/targeting
the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
market positioning
involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represent in comparison with competing products
step 4 of marketing plan
implement marketing mix and allocate resources
marketers implement the actual marketing mix — product, price, promotion, and place — for each product and service on the basis of what they believe their target markets will value and make important decisions about how they will allocate their scarce resources to their various products and services
products
anything that is of value to a customer and can be offered through a voluntary marketing exchange
product and value creation
successful products and services are those that customers perceive as valuable enough to buy
product and value creation
step 5 of marketing plan
evaluate performance using marketing metrics
metric
a measuring system that quantifies a trend, dynamic, or characteristic
make it possible to compare results across regions, strategic business units, product lines, and time periods
implementation phase
the part of the strategic marketing planning process when marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and implement the marketing mix using the 4 Ps
control phase
the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions
situation analysis
second step in a marketing plan; uses a SWOT analysis that assess both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats
price and value capture
price must allow for customers to perceive good value for the product they receive
place and value delivery
the product must be readily accessible
promotion and value communication
-TV
-radio
-magazines
-sales force
-news media
market penetration strategy
a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers
market development strategy
a growth that employs the existing marketing offering to reach new market segments, whether domestic or international
product development strategy
a growth stratgey that offers a new product or service to a firm’s current target market
diversification strategy
a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve
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