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34 Cards in this Set
- Front
- Back
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Marketing strategy |
Identifies: 1. Firm's target markets 2. Related market mix 3. The basis on which the firm plans to build sustainable competitive advantage |
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Sustainable competitive advantage |
Advantage over the competition that is not easily copied and maintained over a long period of time. Marketer's target market is- customers. Good sustainable competitive advantage is the key to long term financial performance |
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Nike uses- p- promotion |
To come up with new versions of its relatively basic products. Athletes are central to its promotion efforts |
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4 Macro strategies for developing customer value |
1. Customer excellence - focuses on retaining loyal customers and excellent customer service. 2. Operational excellence- achieved thru efficient operations and supply chain and HR management 3. Product excellence - having products with high perceived value and effective branding and positioning. Coke, ibm, microsoft-atlary 4. Locational excellence- having a good physical location and internet presence |
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One way to build customer loyalty |
1.Provide something unique- self magazine. 2 . Create emotional attachment through loyalty programs- airlines, hotels, movie theaters,retail stores -costco card -loyalty card\memebership |
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Locational excellence |
Important for retailers and service providers. Competitive advantage based on location is sustainable bc it is not easily copied. Macdonalds |
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Three major phases of marketing plan |
1. Planning 2. Implementation 3. Control |
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Three major phases of marketing plan |
1. Planning 2. Implementation 3. Control |
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1. Planning phase |
A) Marketing executives with too managers define the mission/vision objectives of the business B) situation analysis-SWOT-potential for success |
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2. Implementing phase |
a) identify opportunities by engaging in segmentation, targeting, positioning (step 3) STP b) implement marketing mix using 4 Ps |
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3. Control phase |
Evaluate performance marketing strategy using marketing metrics and taking corrective actions (step 5) |
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Step 1 - business mission( in planning phase) |
Mission statement- description of firms objectives and scope of activities it plans to undertake Answers two questions: 1. What type of business we are 2. What do we do to accomplish our goals and objectives? Answered in highest corporate level before marketing executives are involved. |
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Step 2- Situation analysis- swot ( in planning phase) |
Internal environment-strength,weakness External- opportunities, threats |
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Segmentation-step 3 (under implementation phase)Market segment |
Consumers who respond similarly to a firm's marketing edforts |
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Target marketing \ targeting |
Process of evaluating the attractiveness of various segments and then deciding which to pursue as market Diet coke for women/ Coke zero to men |
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Market positioning (step 3 under implementation phase) |
Process of defining marketing mix variables so that target customers have a clear understanding of what the product does in comparison with competing products. |
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Integrated marketing communications IMC |
Represents the promotion dimension of the the 4 Ps; encompasses variety of communication disciplines -general advertising , personal selling, sales promotion, public relations, direct marketing and electronic media-in combination to provide clarity, consistency, max communicative impact |
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Evaluate performance using marketing metrics ( step 5; under control phase) |
Metric- measuring system that quantifies a trend , dynamic, or characteristic. Used to know -why things happened -project the future - know why they didn't achieve its goals Helps to - compare results across the regions, strategic business units , product lines and time periods. - |
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Who is accountable for performance? |
Business unit and its manager should be held accountable for its revenues and expenses , profits they control. |
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approaches to compare firm's performance over time or to competing firms |
1.Using financial metrics such as sales and profits 2. To view the firm's products and services as a portfolio |
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Metrics used to evaluate a firm vary depending on |
1. The level of the organization at which decision is made 2. The resources the manager controls |
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Portfolio analysis |
Management evaluates the firm's various products and businesses-its portfolio- and allocates resources according to which products are expected to be the most profitable for the firm in the future. -it is performed at the strategic business unit (SBU) or product line level of the firm. |
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SBU (strategic business unit) vs. product line |
1. Division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission and objectives . Goodyear-in other continents. 2. Product line- group of products that consumers may use together or perceive as a similar in some way. |
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Stars |
As the market growth slows, they migrate from heavy users of resources to heavy generators and become cash cows |
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Cash cows |
Low growth but high market share. Already received heavy investments- have excess resources that can be used by other products. (Need it for question kwadrat) |
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Question marks |
High growth but low market share- Most managerially intense products - requires resources to maintain and help increase market share Requires more marketing and production support |
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Dogs |
Low growth and low market share They may generate resources to sustain, still cant be stars. Yokla unless they are needed to complement or boost sales of another product or competitive purposes |
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BCG |
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Growth strategies |
1.Market penetration 2. Market development 3. Product development 4. Diversification |
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Market penetration |
Employs the existing market mix and focuses efforts on existing customers.
- achieved by attracting new customers to the current market or encourage current customers to buy more stuff from them Needs greater marketing efforts in geographic areas in which the product already is sold. MTV |
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Market development |
Employs existing marketing offering to reach new market segments, whether domestic or international. MTV shows to foreign youth |
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Product development (growth strategy) |
Offers a new product or service to firm's current target market (apple) |
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Diversification (growth strategy) |
Introduces a new product or service to a market segment that currently is not served.( new customers) Related diver- similar to its products that it currently offers-calculators compyn gapdaly bn-menzesh Unrelated diver- new business is not similar to present business -risky |
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Front (Term) |
Notes |
