Marketing Strategies

What are some ways to build customer loyalty?

-Provide your target market something unique -Create an emotional attachment through loyalty programs -Offer excellent customer service

The metrics used to evaluate a firm vary depending on?

1. The level of the organization at which the decision is made 2. The resources the manager controls

Lower left quadrant, in low growth markets but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it

Cash Cows

Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions

Control Phase

What is the key to success of any marketing program

Creation of value, firms attempt to develop products and services that customers perceive as valuable enough to buy. (Step 4: Implement Marketing Mix and Allocate Resources)

Focuses on retaining loyal customers and excellent customer service

Customer Excellence

What are the 4 macro or overreaching, strategies that focus on aspects of the marketing mix to create and deliver value to develop sustainable competitive advantages?

Customer Excellence Operational Excellence Product Excellence Locational Excellence

Last of the growth strategies, introduces a new prdcut or service to a market sehment that is currently not served. _____ opportunities may be either related or unrelated

Diversification Strategy

Lower right quadrant. Low growth markets and have relatively low market shares. Although they may generate enough resources to sustain themselves, ____ not destined for "stardom" and should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes

Dogs

Marketing manager identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, positioning (STP) (Step 3). They then are responsible for implementing the marketing mix using the P's (Step 4).

Implementation Phase

Represents the fourth P, promotion. Encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media-in combination to provide clarity, consistency, and maximum communicative impact. Marketers communicate a value proposition, which is the unique value that a product or service provides to its customers and how it is better than and different from those of competitors

Integrated Marketing Communications (IMC)

Having a good physical location and Internet presence

Locational Excellence

Employs the existing marketing offering to reach new market segments, whether domestic or international

Market Development Strategy (Growth Strategies)

The vertical axis, or the annual rate of growth of the specific market in which the product competes. Measures how attractive a particular market is

Market Growth Rate

Employs the existing marketing mix and focuses the firm's efforts on existing customers

Market Penetration Strategy (Growth Strategies)

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Market Positioning (Step 3: Identify and Evaluate Opportunities Using STP, STP)

Many types of customers appear in any market, and most firms cannot satisfy everyone's needs. For instance, among Internet users some do research online, some shop, some look for entertainment, ad many do all 3. Each of thee groups might be a _______, consisting of consumers who respond similarity to a firm's marketing efforts

Market Segment (Step 3: Identify and Evaluate Opportunities Using STP, STP)

The process of dividing the market into groups of customers with different needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them

Market Segmentation (Step 3: Identify and Evaluate Opportunities Using STP, STP)

Percentage of a market accounted for by a specific entity, and is used to establish the product's strength in a particular market. Usually discussed in units, revenue, or sales

Market Share

What are the markets/products and service strategies

Market penetration, product development, market development, diversification

Measuring system that quantifies a trend, dynamic, or characteristic. Used to explain why things happened and also project the future. Makes it possible to compare results across regions, strategic business units, product lines, and time periods. Can determine why it achieved or did not achieve it performance goals with the help of _____.

Metric

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 are we? What do we need to do to accomplish our goals and objectives? Must be answered at highest corporate levels before marketing execs can get involved. Most firms want to maximize stockholders' wealth by increasing the value of the firm's stock and paying dividends.

Mission Statement (Step 1: Define the mission statement)

Achieved through efficient operations and excellent supply chain and human resource management

Operational Excellence

Pertains to positive aspects of the external environment

Opportunities (Step 2: Conduct a Situation Analysis)

Marketing executives, in conjunction with other top managers, define the mission, and/or visions of the business. For the second step, they evaluate the situation by assessing the various players, both in and outside the organization, affect the firm's potential for success

Planning Phase

Management evaluates the firm's various products and businesses-its "portfolio" and allocates resources according to which products are expected to be the most profitable for the firm in the future

Portfolio Analysis

An advantage over the competition that is not easily copied and can be maintained over a long period of time. This wall makes it hard for outside competitors to contact customers inside-otherwise known as the marketer's target market. By building these walls, marketers can sustain their advantage, minimize competitive pressure, and boost profits for a longer time. Establishing a_____________ is key to long-term financial performance

SUstainable COmpetitive Advantage

After completing the situation audit, the next step is to identify and evaluate opportunities for increasing sales and profits using ____. With ____, the firm first divides the marketplace into subgroups o segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to meet the needs of those chosen targets

Segmentation, targeting, and positioning (Step 3: Identify and Evaluate Opportunities Using STP, STP)

After developing its mission, a firm would perform a ______ using a _____ that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. In addition, it should assess the opportunities and uncertainties of the marketplace due to changes in Cultural, Demographic, Social, Technological, Economic, and Political forces (CDSTEP). With this info, firms can anticipate and interpret change, so they can allocate appropriate resources

Situation Analysis SWOT Analysis (Step 2: Conduct a Situation Analysis)

After a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue using as process known as _____

Target Marketing or Targeting (Step 3: Identify and Evaluate Opportunities Using STP, STP)

Represents the negative aspects of the company's external environment

Threats (Step 2: Conduct a Situation Analysis)

The new business lacks any common elements with the present business. Does not capitalize on either core strengths associated with markets or with products

Unrelated Diversification

What is the key to modern customer retention programs?

Viewing customers with a lifetime value perspective, rather than on a transaction-by-transaction basis

What happens in the 4th step?

Marketers implement the actual marketing mix-product, price, promotion, and place-or each product and service on the basis of what they believe their target market will value. At the same time, marketers make important decisions about how they will allocate their scarce resources o their various products and services (Step 4: Implement Marketing Mix and Allocate Resources)

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 P's, action programs, and projected or pro forma income (and other financial) statements. The three major phases of the ______ are planning, implementation, and control

Marketing Plan

Identifies 1. a firm's target market(s) 2. a related marketing mix (its four P's) 3. the bases on which the firm plans to build a sustainable competitive advantage

Marketing Strategy

Offers a new product or service to a firm's current target market

Product Development Strategy (Growth Strategies)

Having products with high perceived value and effective branding and positioning

Product Excellence

Upper right quadrant. Appear in high-growth markets but have relatively low market shares; thus, they are often the most materially intensive products in that they require significant resources to maintain and potentially increase their market share. Marketers must decide whether to infuse question marks with resources generated by the cash cows, so that they can eventually become stars or withdraw resources and eventually phase out the products

Question Marks

The current target market and /or marketing mix shares something in common with the new opportunity

Related Diversification

Special type of market share metric, provides managers wth a product's relative strength, compared with that of the largest firm in the industry

Relative Market Share

IN the upper left quadrant. Occurs in high-growth markets and are high market share products. Often requires a heavy resource investment in such things as promoions and new production facilities to fuel their rapid growth. As their market growth slows, ____ will migrate from heavy users of resources to heavy genrators of resources and become cash cows

Stars

Portfolio analaysis is usually performed at the ________ or _____ level of the firm, though managers also can use it to analyze brands or even individual items. An ___ is a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have different missions or objectives

Strategic Business Unit Product Line