Strategic Marketing Flashcards

What is the marketing concept?
an organization should seek to make a profit by serving the needs of customers.
What is the purpose of the marketing concept?
to rivet the attention of marketing managers on serving broad classes of customer needs
What is marketing?
The process of planning an executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals
What is a market?
a collection of buyers and sellers
What is an exchange?
two parties, with something of value, capable of communication and delivery, with freedom to accept or reject and a belief in the desirability of what the other has
What is strategic planning?
the objectives and strategies established at the top level provide the context for planning in each of the division and departments by divisional and departmental managers
What is the strategic planning process?
Mission
Objectives
Strategies
portfolio plan
What is the organizational mission
it defines the direction in which the organization will head. It is achievable, motivational, and specific. Example is the Better Beer one.
What are organizational objectives?
The endpoints of an organization mission, what it seeks through on-going long-run operations. It should be specific, measurable, and take action commitments
What are the three types of strategies?
Strategies based on products and markets

strategies based on competitive advantage

strategies based on value

What two factors make up market penetration?
Present products and present customers
What two factors make up product development?
New products and present customers
What two factors make up market development?
Present products and new customers
What two factors make up diversification?
New products and new customers
What are the seven categories that appear to influence return on investment?
Competitive position

Industry/market environment

Budget allocation

Capital structure

Production processes

Company characteristics

“change action” factors

What two things does the Boston Consulting Portfolio model measure?
Relative market share and market growth rate
What is a star in the BCP?
High relative market share and high market growth rate
What is a cash cow in the BCP?
High relative market share and low market growth rate
What is a question mark in the BCP?
Low relative market share with high market growth rate
What is a dog in the BCP?
Low relative market share and low market growth rate
What two factors does the GE model measure?
Business strength and Industry attractiveness
What three factors make up the situation analysis?
The internal environment

The external environment

The customer environment

What three things make up the internal environment?
Review of current objectives, strategy and performance

Availability of resources

Organizational culture and structure

What seven factors make up the external environment?
Cooperative

Competitive

Economic

Social

Political

Legal

Technological

What five factors make up the customer environment?
Who?

What?

When?

Where?

Why?

What makes up the SW of the SWOT analysis?
Scale and cost economies

Size and financial resources

Intellectual, legal and reputational resource

What makes up the OT of the SWOT analysis?
Lack of competition

Technology-induced obsolescence

Shifting customer tastes and preferences

What is the value proposition?
The unique value a business offers to its customers. It’s why your customers will want to do business with you.
What are the four factors that make up the value proposition?
Your target market

The #1 benefit your product or service provides to your target market

A description of your product or service

What makes you unique in your marketplace

What three parts make up the strategic planning process?
Strategies based on products and markets

Strategies based on competitive advantage

Strategies based on value

What are the Porter Five Forces?
Direct competitors

substitutes

potential entrants

Suppliers

Buyers

What are the competitive warfare strategies?
Defensive strategy

Offensive strategy

Flanking strategy

Guerrilla strategy

Why do companies use competitive warfare strategies?
Because they are competing for market share
What is a defensive strategy?
It is used to defend a current market position. The industry leader wants to keep their top share. McDonald’s original plan of fast food burgers
What is an offensive strategy?
Companies use their strengths to attack a competitor’s weakness. Burger King’s “have it your way” because McDonald’s couldn’t augment their burgers. McDonald’s responded with chicken nuggets.
What is a flanking strategy?
Attack an industry leader from the sides. Companies focus on the market that isn’t being served. Hardee’s Angus burger. Target is a Wal-Mart for classy people
What is a guerrilla strategy?
attack at a high or low point (high or low prices)

it is a series of quick raids

you get in to the market, make a quick buck, then get out

Jack in the Box has products for a limited amount of time, then pulls them quickly after a lot of sales.

Airport adds, ads on buses, product placement in movies/TV

What are the value discipline strategies?
Differentiation

Customer Intimacy

Operational Excellence

Product leadership

Cost leadership

What is differentiation?
Doing something your competitors can’t do

It’s unique, difficult to copy

Dr. Pepper and Rolex

What is customer intimacy?
Knowing your customers, building loyalty through relationships

Best for services like banks, lawyers, and Realtors.

Helps build trust

What is operational excellence?
Low cost operations, produce so cheaply that you pass your savings on to your customers

3M

What is product leadership?
Frequent introductions

Apple Computers

What is cost leadership?
Price strategy

Wal-Mart discounts the products we use all the time but marks up everything else. Bait-and-switch

What are the 7 pioneer strategies?
First choice

Rules of the game

Distribution

Economies of scale

Switching costs

Network effects

Preemptive strike

What are the 5 fast follower strategies?
Positioning mistakes

Product mistakes

Marketing mistakes

Technology

Limited resources

What are 3 strategies for pioneers?
Mass-market penetration

Niche Penetration

Skimming