MKT 300 Exam 1 Chapter 2

Marketing Strategy

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market. --Articulates best use of company's resources to achieve its marketing objectives.

Strategic Marketing Management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies both effectively and efficiently.

Competitive Advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace. EX Verizon ads focus on primary advantage over competing brands--better 4G services.

Core Competencies

Things a company does well, sometimes gives it an advantage over competition. EX Coke apple and google all benefit from high levels of brand recognition.

Cash Cows

Typically gain more cash than is required to gain market share. -EX Bounty paper towels represent a cash cow for Procter &Gamble b/c it always sells well.

Question Marks

"problem children," have a small share of a growing market and generally require a large amount of cash to build market share. EX The BMW i3 electric car, is a question mark relative to BWM's more established gasoline-powered automobile models.

Market

A group of individuals or organizations that have needs for products in a product class to have the ability, willingness, and authority to purchase those products.

Implementation Timetable

1. Identifying the activities to be performed 2. Determining the time required to complete each activity. 3. Separating the activities to be performed in sequence from those to be performed simultaneously. 4. Organizing activities in the proper order. 5. Assigning responsibility for completing each activity to 1 or more employees, terms or managers.

Marketing Objective Characteristics

1. Objective must be expressed in clear, simple terms. 2. Objective must be measurable (track progress) 3. Objective should specify a time frame for its accomplishment. 4. Objective must be consistent w/ business unit and corporate strategies; ensures companies mission carried out through whole branch.

Corporate Strategy

2 questions addressed: *Who are our customers? *What is our core competency?

Strategic Planning

A company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

Strategic Business Unit (SBU)

A division, product line, or profit center within the parent company EX Nestlé has SBUs for confectionaries and beverages.

Sustainable Competitive Advantage

An advantage that the competition cannot copy. EX Amazon maintains a sustainable competitive advantage in shipping b/c of its high-tech logistics system and extensive network of distributors--allows online giant to offer low prices and fast service.

Performance Standard

An expected level of high performance can be compared. EX a 20% reduction in customers complaints or a monthly quota of $150,000

SWOT Analysis

Assesses an organizations... *Strengths: Competitive advantages or competencies that give the company an advantage. *Weaknesses: Limitations a company faces in developing or implementing a strategy. *Opportunities: Favorable conditions in the environment that could produce rewards for the organization if acted upon *Threats: barriers that could prevent the company from reaching its objectives.

First-mover Advantage

Being the first to offer a certain product in a marketplace. EX Amazon and E-bay were both first mover start-ups, remain leaders--and were free from competition for a while.

Boston Consulting Group (BCG) Matrix

Business tool based on the philosophy that a products market growth rate and its market share are important in determining marketing strategy. -Stars -Cash Cows -Dogs -Question Marks

Late-mover Advantage

By not being the first one to offer, competitiors can benefit by having the chance to improve the product design and marketing strategy . EX Nokia entered the market before Apple, but IPad dominates the tablet computer market by 32%

Stars

Dominant share of market, good prospects of growth. -They use more cash than they generate to finance growth, add capacity and increase market share. EX Samsung tablets computers might be considered b/c they are gaining market share quickly but are still well behind Apple, the leader.

Mission Statement

EX: Starbucks: "To inspire and nurture the human spirit, one cup and one neighborhood at a time" *SPEAKS TO company's desire to be a gathering place and neighborhood & demonstrates core competency's.

Marketing implementation

Is the process of putting marketing strategies into action. Through planning, marketing managers provide purpose and direction for an organization's marketing efforts and are positioned to implement specific marketing strategies.

Dogs

Subordinate share of the market but low prospects for growth. EX The cathode ray tube television may be considered a dog by a company like Panasonic b/c most customers prefer flat screens.

Market Share

The percentage of a market that actually buys a specific product from a particular company. EX Google has a dominant share of the search engine market in US at 67%.