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37 Cards in this Set
- Front
- Back
Marketing Strategy
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The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships
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Marketing Strategy involves 2 key questions:
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1. Which customers will we serve (segmentation/targeting)
2. How will we create value for them (differentiation/positioning) After answering these questions design the proper marketing mix utilizing the 4 p's |
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Vital steps in Market strategy
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Market segmentation
Market targeting Differentiation/Positioning |
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Companies know they cannot PROFITABLY serve all consumers in a given market.
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True
Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments |
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Market Segmentation
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<b>Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors</b>, and who might require separate products or marketing programs
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Market SEgment
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a group of consumers who respond in a similar way to a gien set of marketing efforts
Every market has its segments, but not all ways of segmenting a market are equally useful |
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Market Targeting
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
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When most companies enter a new market how many segments do they usually focus on?
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ONE! if it works out, is profitable then they will scale and expand--seeking full market coverage
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Positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products<b> in the minds of target consumers
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Differentiation
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Actually differentiating the market offering to create superior customer value
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When positioning a product, the company first must <b>identify possible customer value differences that provide competitive advantage upon which to build</b> the position
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true
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A company's entire marketing program should support the chosen...
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positioning strategy
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Once the marketing strategy is established the company must then planning the details of the marketing mix
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Marketing mix:
the set of controllable tactical marketing tools--<b>products, price, place, and promotion</b>--that the firm blends to produce the response it wants in the target market |
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The Marketing Mix:
Product |
means the goods and services combination the ompany offers to the target market.
e.g. a car comes fully serviced and with a comprehensive warrantee this as much a part of the product as the windshield or brake pedal |
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The Marketing Mix:
Price |
the amount of money customers must pay to obtain the product.
e.g. dealers of cars rarely charge the full sticker price--they negotiate the price with each customer, offering discounts, trade in allowances, credit terms--to help bring the price in line with the buyer's perception of the value of the car |
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The Marketing Mix:
Place |
Includes company activities that make the product available to target consumers.
e.g. where will a car company place the dealers of its cars? |
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The Marketing Mix:
Promotion |
activities that communicate the merits of the product and persuade target customers to buy it.
Advertising, promotions, rebates, etc. |
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review fig. 2.4 & 2.5
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now--
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A problem with the 4 p's is that it is all from the seller's view and fails to take into consideration the buyer's perspective--enter the 4 C's
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Customer Solution
Customer Cost Convenience Communication |
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Just as important as the marketing strategy is the actual management/execution of the strategy (Review Fig. 2.6)
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Management Steps:
Analysis Planning Implementation Control (measuring & evaluation) |
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Marketing Analysis
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SWOT Analysis:
An overall evaluation of the company's Strengths, Weaknesses, Opportunities, Threats |
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Strengths
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Internal capabilities, resources, positive situational factors
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Weakness
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internal resource constraints, negative situational factors
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marketing Planning
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deciding which marketing strategies that will help the company attain its overall strategic objectives.
a detailed plan is business, product, or brand |
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Marketing Implementation
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The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
The "who, where, when, how" |
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Review Table 2.2 & Associated marketing plan in Appendix #1
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now!
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Many managers think doing things right (implementation) is more important than doing the right things (strategy)
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true
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Different types of Marketing Department Organization
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Functional Organization
Geographic Organization Product Management Organization Customer Management Organization Large companies use a combination of the above |
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Product Management/Manager
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develops and implements a complete strategy and marketing program for a specific product or brand.
first appeared at P&G. |
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Market or Customer Management Organization
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for companies that sell one product line to many different types of markets and customers that have different needs and preferences
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Brand management focus is shifting more towards...
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Customer Management
moving away from managing just product or brand profitability and toward managing profitability and CUSTOMER equity. They think of themselves as managing people/relationships instead of brands/portfolios |
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Marketing Control
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The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
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Operating Control
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involves checking ongoing performance against the annual plan and taking corrective action when necessary.
ensure the company achieves the sales, profits, and other goals set out in its annual plan. |
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Strategic Control
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Involves looking at whether the company's basic strategies are well matched to its opportunities
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Marketing Audit
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Looks at everything
usually done by an objective experienced outside party. findings sometimes surprise management |
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Return on Marketing Investment (ROMI)
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The <b>NET RETURN</b> from a marketing investment <b>divided by the costs of the marketing Investment</b>
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Beyond measuring return on marketing investment in terms of standard performance measures as sales or market share many companies are using...
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customer relationship measures like customer satisfaction, retention, and equity
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