Chapter 2 Marketing Strategy

Environmental Analysis

- (New product)Address Marketing environemental forces - address Competition -(Established brand ) Talk about target market and whos in it -Assesment of current marketing objectives and performance

undifferentiated targeting strategy

- A marketing strategy that assumes peoples needs for products are homogeneous. - Use a single marketing mix and aim it at a everyone

Finding and analyzing a target market

-The first step in a marketing strategy -determining which targeting strategy to use>Undifferentiated>Concentrated>Differentiated

Executive summary

-a brief overview of the entire marketing plan -Written document -approximently 3 pages long -Appears at the beginning of the marketing plan -Written last**

Components of a marketing plan

1. Executive Summary 2. Environmental Analysis 3. SWOT Analysis 4. Marketing Objectives 5. Marketing Strategies 6. Marketing Implementation 7. Performance Evaluation

What are the major components of a marketing strategy?

1. Finding and analysis of the target market 2. Developing an effective marketing mix

Marketing Objectives

1. Qualitative measures of what is to be ACCOMPLISHED 2. Quantitative measures of what is to be ACCOMPLISHED

differentiated targeting strategy

A strategy that develops multiple marketing mix's and aims at separate market segments.

concentrated targeting strategy

A strategy that uses market segmentation to aim a single marketing mix at a particular part of the market or

In order for marketing implementation to be successful, the organization must practice flexibility in regard to who performs each activity and the time in which they are completed. True False

FALSE: Successful marketing implementation requires that employees know the specific activities for which they are responsible and the timetable for completing them.

Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets

T

****The section of the marketing plan, which provides standards to determine how the marketing activities will be evaluated as well as the audits to be performed to gauge success is called _______. a.performance evaluation b.marketing objectives c.executive summary d.situation analysis

a

J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, redefining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in _______. a.marketing planning b.market organization c.strategic analysis d.marketing management

a

Phoenix Sailing, a charter sailing tour company based in Chicago, Illinois, near Navy Pier is developing a document to assist them in differentiating its business from other tourist organizations as well as specifying the various activities that should be performed to achieve its goals and objectives when implementing marketing tactics. What type of document is Phoenix Sailing developing? a.Marketing plan b.SWOT analysis c.Strategic analysis d.Marketing mix plan

a

Why is sales analysis a common method of evaluation? a.Sales data are readily available and can reflect the target market's reactions to a marketing mix. b.Sales data lets a company evaluate the performance of marketing strategy by comparing sales achieved and costs sustained. c.Sales data allow a marketer to allocate the firm's marketing resources better in the future. d.Sales data provide the most accurate picture of whether a firm reached its performance standards.

a

Marketing Planning

a process of assessing marketing opportunities and resources, determining marketing objectives, redefining marketing strategies, and developing guidelines for implementation and control.

Al Lewis is divisional sales manager with a national paint distribution company. He is responsible for managing the activities of 25 sales representatives who serve a five-state region of the United States. Al is currently conducting performance evaluations of the sales representatives and is calculating the relationship between the sales representative's compensation and the revenue they have generated for the company. One sales representative earned $128,000 in total compensation (base salary plus commission) and generated $768,000 in revenue while another representative was paid $150,000 in total compensation and generated $1,200,000 in revenue. Al is conducting the analysis as part of his annual report and individual employee performance review. What type of analysis can Al Lewis perform utilizing the data related to sales representative compensation and earned revenue? a.Cost analysis b.Engagement analysis c.Sales analysis d.Advertising analysis Feedback: Incorrect. Marketing cost analysis is an analysis of costs to determine which are associated with specific marketing efforts.

a.Marketing cost analysis is an analysis of costs to determine which are associated with specific marketing efforts

The _______ section of the marketing plan supplies information about the company's current situation with respect to the _______, the target market, and the firm's current objectives and performance. a.marketing implementation; marketing environment b.environmental analysis; marketing environment c.executive summary; marketing concept d.SWOT analysis; marketing concept

b

Which section of the marketing plan would most likely include a chart, which specifies the roles and specific responsibilities of various members of the organization who are accountable for executing the marketing strategies necessary to achieve the organization's objectives? a.Marketing objectives b.Marketing implementation c.Performance evaluation d.Marketing strategies

b

What is the first step in creating a marketing strategy? a.Modifying the marketing mix b.Identifying the target market c.Identifying the marketing organization structure d.Establishing profit objectives

b.

Many consumers today suffer from gluten allergies and companies are now modifying their products to provide gluten-free alternatives. Over the last few years, sales of gluten-free foods have surged more than 68% and sales are approximately $9 billion annually with companies such as General Mills and Hormel catering to consumers who prefer gluten-free products. Some market analysts believe the interest in gluten-free products is just another diet fad with the exception of the 1% of the population who suffer from Celiac disease and need gluten-free products. Approximately 39% of all food manufacturers are capitalizing on consumers' interest in gluten-free products. The interest in gluten-free products represents a _______. a.strategic window b.market opportunity c.competitive advantage d.core competency

b. A market opportunity exists when the right combination of circumstances and timing permits an organization to take action to reach a particular target market.

A competitive advantage exists when a _______. a.firm does marketing better than its competitors b.firm observes a fit between the key requirements of a market and its own capabilities c.firm matches a core competency to opportunities it has discovered in the marketplace d.combination of circumstances and timing allow a firm to reach an attractive target market

c

A performance standard is defined as _______. a.analysis of sales figures to evaluate performance b.analysis of costs to determine their association to specific marketing activities c.an expected level of performance against which actual performance can be compared d.a judgment regarding an employee's level of performance in making marketing decisions

c

Jamal Miller is a management consultant who frequently works with businesses to assist them with their strategic planning efforts. He recommends that once firms have used the SWOT analysis to gauge their capabilities and resources relative to the industry, they should identify tactics to achieve a more competitive position relative to other firms in their market. One approach Jamal suggests includes taking actions to convert external _______ into opportunities and internal _______ into strengths. a.strengths; threats b.limitations; benefits c.threats; weaknesses d.core competencies; weaknesses

c.

The section of the marketing plan that outlines how the company will achieve its objectives will discuss _______. a.performance standards and financial controls b.quantitative measures of what is to be accomplished c.the target market and marketing mix d.strengths, weaknesses, opportunities, and threats

c. The marketing strategies section of the marketing plan component outlines how the firm plans to achieve its marketing objectives and discusses the company's target market selection(s) and marketing mix.

In order to achieve marketing objectives, marketing managers must evaluate the effectiveness of their marketing strategy by engaging in strategic performance evaluation. What is the first step in the strategic performance evaluation process? a.Measure actual performance b.Modify marketing strategy c.Compare actual performance with established standards d.Establish performance standards

d

LaTonya Davis was recently hired as the brand manager for Golden Harvest's organic grains division of products including the popular ancient grain, quinoa. LaTonya has been familiarizing herself with the performance of the various products as well as the marketing activities to generate revenue and profitability. LaTonya has started to meet with various marketing personnel who are responsible for different marketing tasks, such as channel sales, publicity, special events, and advertising and is growing concerned since each member of the team has a different perception or vision as well as competing objectives. LaTonya realizes that she and her team must devote time to create a _______. a.marketing objective and task document b.marketing promotion schedule c.marketing analytics analysis d.marketing plan

d

Misty O'Brien is responsible for the social media marketing activities for her company and currently utilizes Facebook, Instagram, Twitter and Pinterest to communicate with customers, reinforce customer relationships, and drive revenues and profitability. She utilizes a technology platform called Hootsuite to schedule posts to Facebook, Twitter, Instagram, and Pinterest and the program also enables Misty to share her workload among members of her team, other departments, or regions of the company. Misty primarily utilizes Hootsuite to schedule posts so that she can match the various social media content to specific marketing objectives according to the days or months of the year that are most appropriate for her company. Therefore, Hootsuite assists Misty with which of the following marketing implementation activities? a.Coordinating marketing activities b.Motivating marketing personnel c.Communication within the marketing unit d.Establishing a timetable for implementation

d

Threats must be matched with opportunities in a SWOT analysis. True False

false: Threats must be converted, not matched, with opportunities in order to prevent them from limiting the organization's capabilities.

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

The marketing mix should satisfy the needs of the target market members and should have two additional characteristics: consistency and flexibility.

true