Marketing Chapter 2 Part 2

Small business saying “locally owned” is an example of
Positioning strategy
When discussing the marketing planning process, STP stands for
Segmentation, targeting and positioning
Additional investment to create more opportunities for students to find jobs is related to
product value
Idea of value based marketing requires firms to charge a price that
Captures the value customers perceive that they are receiving. Value based marketing=customers perceived value
Ebooks create what value since they can be downloaded anywhere
Place value creation. Getting customers products when and where they need them
In value based marketing promotion communicates what
the value proposition to customers through a variety of media
Ads in search engines are an example of what 4 p
promotion
“thats great lets keep doing what were doing” ignores what step of the marketing planning process
Evaluate performance
First objective of the evaluate performance phase of marketing planning process is to
review implementation programs and results using metrics.
Starting point for evaluating performance is
compare goals to actual performance and for any goals not met to review implementation programs looking for explanations
Attempt to determine why performance of diff units varied and whether the variation
was due to internal or external factors
Understanding the causes of performance regardless of whether that performance exceeded met or fell below the firms goals
enables firms to make appropriate adjustments
once the causes of above or below goal performance are understood
firms can decide how the marketing plan should be adjusted
After conducting STP analysis and developing strategies for each of the four p’s she now has to make what decisions
resource allocation. She has chosen a target market, determined positioning strategies and developed marketing mixes. She now has to consider available resources and determine how they will be allocated across the different options available for implementation
In most companies, portfolio management is typically done at the SBU or ___ level of the firm
product line.
A ___ is a group of products that consumers may use together or perceive as similar in some wat
product line
relative share of a market is
determined by comparing its market share to market shares of competitors
To determine how attractive a particular market is using bcg portfolio analysis, market growth rate is established as one axis
BGC matrix uses market growth rate on one axis and relative market share on the other
In BCG portfolio analysis, products in low growth markets that have received heavy investment and now have excess funds available to support other products are called
Cash cows. High relative market share in low growth market. Generates excess cash that can support other product lines
High relative market share in high growth market
Star
A dog should be phased out unless its
complementing or boosting the sales of another product
Strategic marketing planning process is
Not always sequential
What are the 4 major growth strategies marketers typically use
Market penetration, market development, product development and diversification
Product development strategy
Firms develop new products for their existing customers
Market penetration strategy
Sell more of her current products to current customers
Market development strateg
Employs the existing marketing offering to reach new market segments
Selling books to us usually and wanting to sell international
Market development growth strategy
Existing product to new customers
Market development strategy
Expanding into international markets is generally
more risky than expansion in domestic markets
Marketers that design and offer new products and services to their existing customers are pursuing a product development growth strategy
Selling more existing services to existing customers is a
market penetration grwoht strategy
Sell new things to current customers
Product development strategy
Introducing newly developed products or services to a market segment the company is not currently serving is called
Diversification
What is the third step in the marketing planning process
identify opportunities
Marketing planning process steps
Define business mission, situation analysis, identify opportunities, implement marketing mix and allocate resources and evaluate performance
After defining a business mission what should a firm do next to develop a marketing plan
perform a situation analysis
Best way to build a sustainable competitive advantage using product excellence
positioning the product using a clear distinctive brand image
Implementation phase
marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting and positioning (STP)(step 3)
CDSTEP
Cultural demographic social technological economic and political forces
Question mark
High growth market but low market share