BA 370 Ch 2 Gaffen
product development
3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a ________ growth strategy.
sustainable competitive advantage
A _____ is an advantage over the competition that is not easily copied and thus can be maintained over a long period of time.
mission statement
A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?
question mark
A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix.
marketing plan
A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
operational
Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence.
Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.
Customer retention programs are based on what concept?
market penetration
existing market consumes more of its existing products
market development
existing market offering to new market segments
segmentation, targeting, and positioning (STP)
firms use these processes to identify and evaluate opportunities for increasing sales and profits
customer excellence
focuses on retaining loyal customers and excellent customer service
product line
group of associated items, such as those that consumers use together or think of as part of a group of similar products
operational excellence
involves a firm's focus on efficient operations and excellent supply chain management and strong relationships with its suppliers
product excellence
involves providing products with high perceived value and effective branding and positioning
mission statement
is a broad description of a firm's objectives and the scope of activities it plans to undertake.
portfolio analysis
management evaluates the firm's various products and businesses and allocates resources according to which products are expected to be the most profitable for the firm in the future
positioning
services to best meet the need of the chosen targets
STP
stands for segmentation, targeting, and positioning.
market segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
situation analysis
uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
product development
In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) ________ strategy.
opportunity
In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.
the company provides products with a high perceived value (this relates the product excellence not operational excellence)
Juan is in the marketing department of a midsized firm that develops and sells communications systems. He is proud of the human resource area in the company that provides the firm with excellent employees. Juan himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all the following except
divide the marketplace into subgroups
Larry is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to
product development
new product to current target market
diversification
new product to new market segments (related or unrelated)
product excellence
Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) ________ macro strategy.
False
T/F Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.
True
T/F Price should be based on the value that the customer perceives as giving them a good value for the product they receive.
True
T/F: Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.
True
T/F: It is not always necessary to go through all the steps in the marketing planning process.
True
T/F: Jose manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Jose manages a strategic business unit.
False
T/F: The strategic planning process always proceeds sequentially through the five steps.
False
T/F: To build a sustainable competitive advantage, companies should focus on a single strategy.
True
T/F: iTunes software is often credited with the success of Apple's iPod MP3 player, because it made the iPod easier to use than competing players and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage.
market penetration, market development, product development, diversification
what are the four different growth strategies?
sustainable competitive advantage
what is the key to long-term financial performance?
evaluate performance and allocate resources, control phase
what is the last step of the Marketing Plan and what phase is it?
establish mission statement and objectives
what two steps are first in the Planning Phase of the Marketing Plan?
identify opportunities (STP) and implement marketing mix (4 P's)
what two steps are second in the Implementation Phase of the Marketing Plan?
Customer Relationship Management (CRM)
what type of management focuses on loyalty cards, memberships, and using purchase info to better meet the needs of the loyal customer
market segmentation
The process of dividing the market into groups of customers with different needs, wants, or characteristics is called
market growth rate
To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.
making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to
Value creation through place decisions for a consumer product involves
customer excellence, operational excellence, product excellence, locational excellence
What are the four strategies to Create & Deliver value & a Sustainable Competitive Advantage?
customer excellence
When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maria's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of
product development
When Marvel launched several successful series on Netflix, including Jessica Jones, The Defenders, Iron Fist, and Luke Cage, it employed a ________ strategy.
Customer Relationship Management (CRM)
a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers
Strategic Business Unit (SBU)
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives
strategic business unit (SBU)
a division of the firm that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives from other business units.
marketing strategy
a firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage
Market Segment
a group of consumers who respond similarly to a firm's marketing efforts
unrelated diversification
a growth strategy whereby a new business lacks any common elements with the present business
related diversification
a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity
metric
a measuring system that quantifies a trend, dynamic, or characteristic
locational excellence
a method of achieving excellence by having a strong physical location and/or internet presence
target
determines which of those segments it should pursue
segmentation
divides marketplace into subgroups
resource allocation
After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions.
target
After identifying its ____ segments, a firm must evaluate each of its strategic opportunities.
multiple
Firms require ____ approaches to build a "wall" around their position that stands as high as possible.
marketing mix
Product, Price, Place, Promotion
positioning strategy
Starbucks carefully crafts its offerings and advertising message, and it strategically sets prices and selects locations to appeal to its target market. These efforts represent Starbucks'
evaluate performance and make adjustments
When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to
Recent consumer studies have indicated that Chinese consumers prefer American cars
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?
Identify and evaluate opportunities and implement marketing mix
Which of the following steps occurs during the implementation phase of the marketing plan?
positioning
________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what a product does or represents in comparison with competing products.
