Marketing Management [Chapter 2]

Front 1

Choosing the Value

Back 1

Represents the “homework” marketing must do before any product exists. Marketers must segment the market, select the appropriate target, and develop the offering’s value positioning. The formula “segmentation, targeting, positioning (STP)” is the essence of strategic marketing.

Front 2

Providing the Value

Back 2

Marketing must determine specific product features, prices, and distribution.

Front 3

Communicating the Value

Back 3

By utilizing the sales force, Internet, advertising, and any other communication tools to announce and promote the product. The value delivery process begins before there is a product and continues through development and after launch.

Front 4

Value Chain

Back 4

a tool for identifying ways to create more customer value.

Front 5

Primary Activities

Back 5

(1) inbound logistics,or bringing materials into the business;(2) operations, or converting materials into final products; (3) outbound logistics, or shipping out final products; (4) marketing, which includes sales; and (5) service. Specialized departments handle the support activities—(1) procurement,(2) technology development,(3) human resource management, and (4) firm infrastructure.

Front 6

Supply Chain

Back 6

Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network.

Front 7

Core Competencies

Back 7

(1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits.

(2) It has applications in a wide variety of markets.

(3) It is difficult for competitors to imitate.

Front 8

Distinctive Capabilities

Back 8

Excellence in broader business processes

* market sensing, customer linking, and channel bonding

Front 9

Marketing Plan

Back 9

It is the central instrument for directing and coordinating the marketing effort. It operates at two levels: strategic and tactical.

Front 10

Tactical Marketing Plan

Back 10

Specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service.

Front 11

Strategic marketing plan

Back 11

Lays out the target markets and the firm’s value proposition, based on an analysis of the best market opportunities.

Front 12

Value Exploration

Back 12

How a company identifies new value opportunities.

Front 13

Value Creation

Back 13

How a company efficiently creates more promising new value offerings

Front 14

Value Delivery

Back 14

How a company uses its capabilities and infrastructure to deliver the new value offerings more efficiently.

Front 15

Mission Statements

Back 15

*To share with managers, employees, and (in many cases) customers.A clear, thoughtful mission statement provides a shared sense of purpose, direction, and opportunity.

*are at their best when they reflect a vision, an almost “impossible dream” that provides direction for the next 10 to 20 years.

Front 16

Tactical Marketing Plan

Back 16

Specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service.

Front 17

Transportation

Back 17

the horse and carriage, automobile, railroad, airline, ship, and truck are products that meet that need.

Front 18

Target Market

Back 18

tends to focus on selling a product or service to a current market.

Front 19

Three Dimensions of Business

Back 19

customer groups, customer needs, and technology.

Front 20

INTENSIVE GROWTH

Back 20

A review of opportunities for improving existing businesses.

Front 21

Market-penetration strategy

Back 21

The company first considers whether it could gain more market share with its current products in their current markets

Front 22

Market-development strategy

Back 22

It considers whether it can find or develop new markets for its current products

Front 23

Product-development strategy

Back 23

It considers whether it can develop new products of potential interest to its current markets

Front 24

Diversification strategy.

Back 24

The firm will also review opportunities to develop new products for new markets.

Front 25

Product-market expansion grid

Back 25

It considers the strategic growth opportunities for a firm in terms of current and new products and markets.

Front 26

INTEGRATIVE GROWTH

Back 26

A business can increase sales and profits through backward, forward, or horizontal integration within its industry.

Front 27

DIVERSIFICATION GROWTH

Back 27

makes sense when good opportunities exist outside the present businesses—the industry is highly attractive and the company has the right mix of business strengths to succeed.

Front 28

Organization

Back 28

Consists of its structures, policies, and corporate culture, all of which can become dysfunctional in a rapidly changing business environment.

Front 29

Corporate Culture

Back 29

“the shared experiences, stories, beliefs, and norms that characterize an organization.”

Front 30

Scenario Analysis

Back 30

develops plausible representations of a firm’s possible future using assumptions about forces driving the market and different uncertainties.

Example question: “What will we do if it happens?”

Front 31

Business Mission

Back 31

Each business unit needs to define its specific mission within the broader company mission.

EX: “To target major television studios and become their vendor of choice for lighting technologies that represent the most advanced and reliable studio lighting arrangements.”

Front 32

SWOT Analysis

Back 32

The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats

Front 33

EXTERNAL ENVIRONMENT (OPPORTUNITY AND THREAT) ANALYSIS

Back 33

A business unit must monitor key macroenvironment forces and significant microenvironment factors that affect its ability to earn profits.

Front 34

Marketing Opportunity

Back 34

Is an area of buyer need and interest that a company has a high probability of profitably satisfying.

Front 35

Problem detection method

Back 35

Asks consumers for their suggestions

Front 36

Ideal method

Back 36

Imagine an ideal version of the product or service

Front 37

Consumption Chain Method

Back 37

Asks them to chart their steps in acquiring,using,and disposing of a product.

Front 38

Environmental threat

Back 38

Is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

Front 39

Goal formulation

Back 39

Developing specific goals for the planning period.

Front 40

Overall cost leadership

Back 40

Firms work to achieve the lowest production and distribution costs so they can underprice competitors and win market share. They need less skill in marketing.

Front 41

Differentiation

Back 41

The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market. The firm seeking quality leadership, for example, must make products with the best components,put them together expertly,inspect them carefully, and effectively communicate their quality.

Front 42

Focus

Back 42

The business focuses on one or more narrow market segments, gets to know them intimately, and pursues either cost leadership or differentiation within the target segment.

Front 43

Strategic group

Back 43

firms directing the same strategy to the same target market

Front 44

Product or service alliances

Back 44

One company licenses another to produce its product, or two companies jointly market their complementary products or a new product.

Front 45

Promotional alliances

Back 45

One company agrees to carry a promotion for another company’s product or service.

Front 46

Logistics alliances

Back 46

One company offers logistical services for another company’s product.

Front 47

Pricing collaborations

Back 47

One or more companies join in a special pricing collaboration.

Front 48

Partner relationship management (PRM)

Back 48

Corporations have begun to develop organizational structures to support them, and many have come to view the ability to form and manage partnerships as core skills

Front 49

Style

Back 49

Means company employees share a common way of thinking and behaving.

Front 50

Skills

Back 50

Means employees have the skills needed to carry out the company’s strategy.

Front 51

Staffing

Back 51

Means the company has hired able people, trained them well, and assigned them to the right jobs.

Front 52

Shared Values

Back 52

Means employees share the same guiding values.

Front 53

Marketing Plan

Back 53

Is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives.