Marketing 305 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 competititors
customer excellence
involves a focus on retaining loyal customers and excellent customer service
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
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 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
implementation phase
the part of the strategic marketing planning process when marketing managers 1) identify and evaluate different opportunities by engaging in segmentation, targeting and positioning and 2) implement the marketing mix using the four P’s
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
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
situation analysis
second step in a marketing plan; uses a SWOT analysis that assess both the internal environment with regard to is strengths and weaknesses and the external environment in terms of its opportunities and threats
STP
the processes of 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 segmentaion
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
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 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
a measuring system that quantifies a trend dynamic of characteristic
strategic business unit
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or ojectives
product line
groups of associated items, such as those that consumers use together to think of as part of a group of similar products
market share
percentage of a market accounted for by a specific entity
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
the annual rate of growth of the specific market in which the product competes
stars
occur in high-growth markets and are high-market share products
cash cows
in low-growth markets but are high market share products
question marks
appear in high-growth markets but have relatively low market shares
dogs
are in low-growth markets and have relatively low market shares
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 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
diversification
a growth strategy whereby a firm introduces a new product or service to a market segment that is 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