Marketing Chapter 2 Part 1

Strong supplier relations and efficient supply chains help firms
Achieve operational excellence
To build a sustainable competitive advantage
firms should seek multiple sources of advantage to meet customers needs to the greatest possible extent
It is not always necessary to go through all the steps in the marketing planning process.
Revisions to existing plans often do not require going through all steps in the process
Mission statement
Broad description of a firms objectives and the scope of activities it plans to undertake
Sustainable competitive advantage
Apple iPod being easy to use and nobody could really duplicate it
STP
Segmentation, targeting, positioning
SWOT
Strengths, weaknesses, opportunities, threats
Firms are typically more successful when
They focus on opportunities that build their own strengths relative to the competition
Recession leading to less tourism and business at a surf shop is what
Recession is an external factor with possible negative results so it is a threat
Price should be based on what
The value that the customer perceives. Value based marketing helps to ensure that customers perceive a product as a good value
Strategic business unit
division of the firm that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
Strategic planning process
can move back and forth between steps if needed. Doesn’t always proceed sequentially through the five steps
Product development strategy
looking for ways to offer new goods and services to his existing customers
Market development strategy
Offers existing products to new customers
Dog
Low relative market share in a low growth market
The implement marketing mix step of the strategic marketing planning process is part of
The implementation phase, along with stp analysis
Relative market share is an example of
A marketing metric. Might be used as a metric to evaluate a firms performance compared to its competitors
Four major growth strategies are
Market penetration, product development, market development, and diversification
Resource allocation takes place during
Step 4, in which the marketing mix is implemented and resources are allocated
If a firm wants to develop a sustainable competitive advantage, it should
Examine its operations and customer relations to identify significant things competitors cannot easily copy
Four overarching strategies
Locational excellence, customer excellence, operational excellence, and product excellence
Ritz carlton clerk went to extra trouble to offer excellent customer service by dry cleaning then suit overnight which is one way to pursue
A customer excellence strategy
Taking steps to encourage customer loyalty is one way to
Sustain an advantage over competitors.
Relationship that is initially unprofitable may become profitable
Lifetime value of customers
Reputation for excellent customer service has probably resulted in
a sustainable competitive advantage
Firms achieve ___ through efficient procedures and excellent supply chain management
Operational excellence
Operational excellence helps to create
a sustainable competitive advantage by keeping costs low
You must always look for new sources of advantage
Cant come up with single idea stay with it long term and expect to sustain a competitive advantage
Effective marketing doesn’t just happen. It is
Planned. Companies may succeed on accident, but good marketing requires careful planning
Carla has been directed by her marketing manager to cut prices, place ads, and tell distributors to chill. What step of the strategic marketing planning process is carla engaged in
Implement marketing mix and resources
When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged
Planning. SWOT analysis is part of the planning phase
Satisfied customers, if this satisfaction leads to loyalty, is a source of
Sustainable competitive advantage
Lowering prices is
least likely to provide a sustainable competitive advantage. This is easy for competitors to copy. If you can create an efficient supply chain that cuts your costs and you pass that on to consumers then you can create a sustainable competitive advantage
Small retailers that survive among large ones probably have developed
A sustainable competitive advantage. They can’t compete with the big guys on pricing but they can provide services and products that consumers would be willing to pay more for
Internal components of a SWOT analysis are
Strengths and weaknesses
External components of a SWOT analysis are
opportunities and threats
Management of a just in time system that coordinates with manufacturers being faulty is
an internal issue; if it is being done badly then that makes it a weakness when it comes to a SWOT analysis
For US businesses with strong export capabilities expansion of us trade agreements with other countries creates
opportunities. This is a positive external factor
Ford announcing that it would cut back production is a ___ for companies supplying ford
threat. This is external and negative
First step of STP analysis
Segmentation. Involves dividing the market into subgroups. Business mission development and SWOT analysis take place before STP analysis starts and targeting and positioning are later stages in STP analysis
Walmart starting to sell organic stuff means they were trying to
attract a different market segment
Target market segment
More than just a demographic. Includes aspects of behavior
Baby boomers segment formed using age
Demographic factor
After identifying various market segments that her company could pursue lids evaluated each segments attractiveness based on size imcmoe and saccessability lisa was involved in
Target marketing
Key component of target marketing is t
The evaluating of potential target segments attractiverness
Positioning strategy
positioning is the creation of a clear, distinct understanding of what the product does or represents compare to competitors. Celebs are often used to convey this message
Final activity in STP analysis
Positioning. Involves the process of defining the marketing mix variables so that target customers have a clear, distinct understanding of what a product does or represents in comparison with competingn products
Packaging colors labels fonts all contribute to the consumers impression of a product and to their understanding of what it offers. this is therefore part of
The products positioning
When positioning products relative to competitors offerings, firms typically are most successful when they focus on opportunities that
build on their strengths relative to those of their competitors
When firms take advantage of their strengths to develop positioning they stand a good chance of
success as long as these strengths translate into greater value for consumers