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37 Cards in this Set
- Front
- Back
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Marketing Strategy |
Identifies: 1. target market 2. marketing mix (4P's) 3. how to build a sustainable competitive advantage |
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Sustainable Competitive Advantage |
Advantage over competition that cannot be easily copied |
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Macro Strategies to Create Customer Value |
Customer Excellence Operational Excellence Product Excellence Locational Excellence |
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Customer Excellence |
Creating value-based strategies to retain customers and provide customer service |
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Operational Excellence |
Efficient operations, supply chain management, and relationships with suppliers (can gain exclusive rights from suppliers) |
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Product Excellence |
High value and effective branding/positioning (Apple) |
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Locational Excellence |
Starbucks chooses good locations. No one will walk far for a cup of coffee. |
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Marketing Plan |
Written document current market situation, threats and opportunities, marketing objectives and strategy in terms of the 4P's, action program, and projected income statements 3 Phases: Planning, Implementing, Control |
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Planning Phase |
1. Define mission/vision of business 2. Assess how internal and external factors could affect success (SWOT situation analysis) |
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Implementation Phase |
3. Engage in segmentation, targeting, and positioning (STP) to identify and evaluate opportunities 4. Implement marketing mix using 4P's |
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Control Phase |
5. Evaluate the performance of the marketing strategy using marketing metrics. Take any corrective steps
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Step 1 |
Define Business Mission |
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Mission Statement |
Broad statement about a firm's objective and activities it will undertake |
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Step 2 |
Conduct a Situation Analysis Use SWOT and CDSTEP (Cultural, Demographic, Social, Technological, Environmental, and Political forces that may cause market changes) |
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STEP 3 |
Evaluating Opportunities based on STP |
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Segmentation |
Market segment - group of consumers who react similarly Market segmentation - dividing market into different groups of consumers with similar wants and needs |
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Targeting |
Targeting/Target Marketing - evaluating different segments to decide which to pursue |
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Positioning |
Defining market mix variables so customers know what the product does |
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Step 4 |
Implementing Market Mix and Allocate Resources Determine 4P's based on what target market will value and determine how to allocate resources |
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Step 5 |
Evaluate Performance Using Marketing Metrics Marketing Metric - measuring system that quantifies a trend, dynamic, or characteristic (net sales, profit, etc) Portfolio Analysis |
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Portfolio Analysis |
Evaluate a firm's various products and give the most resources to the most profitable ones. Done in the SBU or product line level of the firm. |
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Strategic Business Unit |
An autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities. |
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Product Line |
Groups of products consumers often use together (makeup lines) |
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Market Share |
Percentage of market accounted for by a certain entity. Usually discussed in revenue, sales, etc to determine strength of the product in a particular market. |
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Relative Market Share |
Indexes a firm's or a brand's market shareagainst that of its leading competitor |
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Market Growth Rate |
The annual rate of growth for the market the product is competing in. |
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Stars |
Upper left, occur in high-growth markets and are high market share products. That is, stars often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth. As their market growth slows, stars will migrate from heavy users of resources to heavy generators of resources and become cash cows. |
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Cash Cows |
Lower left, are in low-growth markets but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it. For example, the firm may decide to use the excess resources generated by Brand C to fund products in the question mark quadrant. |
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Question Marks |
Upper Right, appear in high-growth markets but have relatively low market shares; thus, they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share. Managers must decide whether to infuse question marks with resources generated by the cash cows, so that they can become stars, or withdraw resources and eventually phase out the products. Brand A, for instance, is currently a question mark, but by infusing it with resources, the firm hopes to turn it into a star. |
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Dogs
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Lower right, are in low-growth markets and have relatively low market shares. Although they may generate enough resources to sustain themselves, dogs are not destined for stardom and should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes. |
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Growth Strategies |
Market Penetration Product Development Market Development Diversification |
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Market Penetration Strategy |
Employs the existing marketing mix and focuses the firm's efforts on existing customers. Such a growth strategy might be achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit. |
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Product Development Strategy |
employs the existing marketing offering to reach new market segments, whether domestic or international. International expansion generally is riskier than domestic expansion because firms must deal with differences in government regulations, cultural traditions, supply chains, and language. However, many U.S. firms, including MTV, enjoy a competitive advantage in global markets—such as Mexico, Latin America, Europe, China, and Japan—because, especially among young people, U.S. culture is widely emulated for consumer products. |
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Market Development Strategy |
offers a new product or service to a firm's current target market. Consider MTV's dynamic line-up: The network constantly develops new pilots and show concepts to increase the amount of time viewers can spend watching MTV. |
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Diversification Strategy |
When a firm introduces a new product into a market segment it doesn't already serve |
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Related Diversification |
When the current target market and/or marketing mix shares something in common with the new opportunity |
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Unrelated Diversification |
When the new business lacks any common elements with the old |
