Mkt 301 - Ch 2

Front 1

Marketing manager responsibilities include:

Back 1

1. carrying out the marketing plan
2. meet the needs of target market with products or services better than the competition while meeting the firm's goals
* Have control of internal/ external interactions
* Marketing environment is outside the control of the manager -- must forecast events, marketing plans help with this

Front 2

Marketing Mix

Back 2

Set of decisions about price, channels of distribution (place), product, communications (promotion), and customer relationship management that implements the marketing strategy.

Front 3

Marketing Environment

Back 3

1. Competitive
2. Legal and Regulatory
3. Political
4. Sociocultural
5. Economic

Front 4

Components of Marketing Strategy

Back 4

1. What are the objectives of the firm?
2. Who are our targeting customers?
3. Which companies offer the greatest competition for our targeting customers?
4. Why and on what basis should customers buy our product versus our competitor's product?
5. How should we implement our marketing mix strategy?

Front 5

Complete Marketing Strategy

Back 5

1. Objectives
2. Customer Target(s)
3. Competitor Target(s)
4. Core Strategy
5. Customer Target(s)
6. Implementation: Mkt. mix
7. Price, Communications & Promotion, Product Policy, Channels of Distribution, CRM

Front 6

Objectives

Back 6

The standards by which success and failure is measured. Trade-offs between increasing market share and profits.

Front 7

Good objectives should...

Back 7

1. be measurable
2. be achievable, yet challenging
3. be consistent
4. have a clear time frame
5. have a quantified standard of performance

Front 8

Mission statement

Back 8

a statement that captures an organization's purpose, customer orientation and business philosophy. answers the questions
*what business are we in?
*who are our customers?

Front 9

Customer Targets

Back 9

Customers have different tastes and preferences, seek different benefits derived from products & services, and vary in their responses to marketing mix variables.

Front 10

Competitor Targets

Back 10

Come into play when companies determine who their customer targets are.

Front 11

Marketing Concept

Back 11

Emphasizes a customer focus or organizing a firm's resources toward understanding customers' needs and wants. Marketers do not services all customers, nor do they service all customers the same way.

Front 12

Peter Drucker and Theodore Levitt quote

Back 12

"The purpose of business is to create a customer"

Front 13

Customer Orientation

Back 13

Customer-oriented firms understand that customers seek benefits and invest in their customers and long-term customer satisfaction. Key is for marketers is to understand what benefits are sought by customers, how to translate them into products and communicate the benefits of such into easy-to-understand language for customers.

Front 14

Strategic Alternatives: Marketing Penetration Strategy

Back 14

Current customers or direct competitors' customers of product or service.
*Increase consumer/firm usage & consumption of products
*Get competitors' customers to switch to your product

Front 15

Strategic Alternatives: Marketing Development Strategy

Back 15

Customers targeted by firm or firm's competitors but have not been persuaded to buy or customers in segments no pursued by you or the competition
* Costs, consumer perceptions, consistency between brand image and targeted consumers, etc.
* Can be done with or without modifying the product

Front 16

Reasons companies enter foreign markets include:

Back 16

*Saturated domestic markets (i.e. slow or declining market growth, intense competition)
*Market opportunity (untapped markets)
* Expand global presence to grow sales, profits, market share
*Costs

Front 17

Entering foreign markets require careful planning and analysis:

Back 17

*Growth rate, political stability, economy, infrastructure
*Barriers to entry and government regulations
*Characteristics of product markets
*Management objectives (i.e. joint partnerships, local suppliers and retailers, etc.)

Front 18

Value Proposition

Back 18

summarize your customer and competition targets and why customers buy your products & services; establishes which marketing mix programs to develop

Front 19

Differentiation

Back 19

Consumers make distinctions between products on important attribute(s)
*Marketers seek to develop sustainable competitive advantage
*Competitive advantages should be difficult to imitate, generate customer value, and increased value must be perceived by customers

Front 20

Ways to attain low-cost position

Back 20

1. Economies of scale
2. Experience curve
3. Tight control of costs (i.e. manufacturing, materials, service, supplier relationships, use of innovative technology, etc.)

Front 21

Quality-Based Differentiation

Back 21

Willingness to pay price premium for some point of difference considered valuable to consumers. Can differentiate based on actual quality differences. (i.e., product reliability, customer service etc.)

Front 22

Perceptual map

Back 22

Measurement tool that conceptualizes how consumers perceive your product to the competition on a variety of attributes

Front 23

Brand Equity

Back 23

Marketing and financial value of a brand

Front 24

Core Strategy: Product Positioning

Back 24

Involves both actual and perceived differential advantages. Closely linked to value proposition. Must communicate to customers what your product represents and how it differs from competing products. Repositioning attempts to create a new perceived advantage in the consumer mindset

Front 25

Product Life Cycle (PLC)

Back 25

A strategic tool that plots the sales progression of products or product categories within an industry over time

Front 26

PLC: Introduction Stage

Back 26

Firm works to stimulate demand for new market entry. Price generally high (skimming strategy) to recoup development costs quickly. Promotion is aimed toward building brand awareness. Must convince customers that the benefits of new product provide an upgrade over the product/service to be replaced. Distributors usually have power in its relationship with manufacturers, because product is still unproven. May enjoy first-mover advantage.

Front 27

PLC: Growth Stage

Back 27

Period of rapid revenue growth. Sales increase as customers become aware of product and its benefits and additional markets are targeted. Competitors often enter the latter part of the growth stage. Goal is to gain consumer preference and increase sales. Distribution becomes more intensive and advertising is increased to build brand preference. Focus on new product features and packaging; improvement of product quality.

Front 28

PLC: Maturity Stage

Back 28

Primary goal is to maintain market share and extend the product life cycle. Competition intensifies likely resulting in decreased market share and prices. Firms place effort into encouraging customers to switch brands, increase usage per customer and converting non-users into customers. Sales promotions may be offered to encourage retailers to give products more shelf space over competing products.

Front 29

PLC: Decline Stage

Back 29

Sales and profits decline when the market becomes saturated, technologies become obsolete, and/or customer tastes change. Unit costs may increase with declining production volumes. Firms may reduce the number of products in product line. Prices may be lowered to liquidate inventory of discontinued products. Selective distribution as non-profitable channels are phased out. Expenditures are lower and aimed at reinforcing brand image for continued products.