Marketing 301 chapter 2

marketing strategy
a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage
sustainable competitive advantage (SCA)
an advantage over the competition that is not easily copied and can be maintained over a long period of time.

acts like a wall that the firm has built around its position in a market.

customer excellence
involves a focus on retaining loyal customers and excellent customer service
operational excellence
involves a firms focus on efficient operations and excellent supply chain management
product excellence
involves a focus on achieving high quality products; effective branding and position 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 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 statements
Multiple Sources of Advantage
Firm require multiple approaches to build a sustainable competitive advantage
SWOT Analysis
should assess the opportunities and uncertainties of the marketplace due to change in cultural, demographics, social, technological, economics, and political forces (CDSTEP)
Strengths: Internal
Weaknesses: Internal
Opportunities: External
Threats: External
STP
the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sale and profits
situation analysis
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
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
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 represents in comparison with competing products
metric
a measuring system that quantifies a trend, dynamic, or characteristic
portfolio analysis
management evaluates the firms various products and businesses and allocates resources according to which products are expected to be the most profitable for the firm in the future.
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
market share
percentage of a market accounted for by a specific entity
relative market share
a measure of the products 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 product competes
b
Supply chain efficiency, a strong brand name, and customer satisfaction are likely to be sources of a
A) strategic plan.
B) sustainable competitive advantage.
C) macro strategy.
D) marketing plan.
E) SWOT analysis.
d
Although competitors can copy or match the goods and services a firm offers, the firm can still develop a sustainable competitive advantage through ______________ if its products have high perceived value and effective branding or positioning.
A) competitive intelligence
B) promotion
C) strategic pricing
D) product excellence
E) operational excellence
e
A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four Ps, action plans, and pro forma financial statements is known as
A) a positioning statement.
B) a unique selling proposition.
C) a situational analysis.
D) an annual report.
E) a marketing plan.
b
Of the five steps to the strategic marketing planning process, which step usually comes first?
A) Evaluate performance
B) Define the business mission
C) Analyze the situation
D) Identify and evaluate opportunities
E) Implement the marketing mix
d
A SWOT analysis is part of a firm’s situation audit. SWOT is an acronym for
A) strategies, work, operations, and threats.
B) strengths, weaknesses, organization, and timeliness.
C) sustainable competitive advantage, worth, opportunities, and thoughts.
D) strengths, weaknesses, opportunities, and threats.
E) strategies, willingness, order, and timeliness.
a
Steve has been working his way through the five steps in the development of a marketing plan. He has examined the firm’s business mission and objectives and developed a SWOT analysis in some detail. Before he can implement the marketing mix, he must begin identifying market segments that his company could pursue. In target marketing, Steve will:
A) evaluate each potential segment’s attractiveness.
B) predict competitive reactions.
C) choose one of the four macro strategies.
D) incorporate results from test marketing.
E) determine the preferences of senior management.
d
When marketers execute pricing, promotion, place and product strategies, they are in the ___________________ phase of marketing planning.
A) planning
B) marketing mix
C) control
D) implementation
E) strategic
b
Kathy has been assigned the task of assembling information to monitor whether the plans that were implemented are achieving what they are supposed to. She will look at both performance and financial measures. She will use a series of _____________, which are measuring systems that quantify a trend, dynamic, or characteristic.
A) economic indicators
B) metrics
C) quantification criteria
D) implementation yardsticks
E) feedback loops
b
Brian heard his unit described as a cash cow. At first, he wasn’t sure he liked that, but felt better about it when he learned it meant
A) his unit was the business version of a sacred cow, and the rest of the firm has an obligation to honor what he and his colleagues are doing.
B) his unit has excess resources that can be spun off to other business units that need it.
C) the products in his unit have low market share but are in high-growth markets.
D) the products in his unit are in a low-growth market, but have low market share to reduce risk.
E) the products in his unit are in both high-growth markets and have high market share.
d
Which of the following is one of the four major growth strategies marketers typically pursue?
A) Dynamic market segmentation
B) Merger and acquisition
C) Customer evaluation and retention
D) Market development
E) Vertical integration