Marketing Ch 2

How does product development achieve company growth?

By offering modified or new products to current market segments

Differentiation

Differentiation begins the positioning process.

cash cows

Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share.

The four Ps of the marketing mix are redefined in buyer terms as the four Cs. What are the four Cs of the marketing​ mix?

Customer​ solution, customer​ cost, convenience, communication

What is one primary purpose of a​ product's position?

Differentiation

Problems with Matrix Approaches

Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning

Diversification

Diversification involves starting up or buying businesses beyond its current products and markets. For example, the company could acquire a company that operates in different market segments with a different product mix.

dogs

Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash.

Downsizing

Downsizing is when a company must prune, harvest, or divest businesses that are unprofitable or that no longer fit the strategy.

Functional organization

Functional organization is the most common form of marketing organization with different marketing functions headed by a functional specialist.

Geographic organization

Geographic organization is useful for companies that sell across the country or internationally. Managers are responsible for developing strategies and plans for a specific region.

Growth-share matrix

Growth-share matrix is a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share.

__________ achieves company growth by identifying and developing new market segments for current company products.

Market development

Market positioning

Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market segment

Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.

Market segmentation

Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.

Market targeting

Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Marketing mix

Marketing mix is the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market.

​________ represents the marketing logic by which the company hopes to create customer value and achieve​ profitable, mutually beneficial relationships.

Marketing strategy

Marketing strategy

Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.

Return on Marketing Investment (Marketing ROI)

Net return from a marketing investment divided by the costs of the marketing investment Measurement of the profits generated by investments in marketing activities

Which of the following steps in the strategic planning process is not done at the corporate​ level?

Planning marketing strategies

Portfolio analysis is

Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.

Product development

Product development involves offering modified or new products to current markets such as by moving into new product categories.

Ps --> Cs

Product—Customer solution Price—Customer cost Place—Convenience Promotion—Communication

question marks

Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share.

Stars

Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows.

Strategic planning

Strategic planning is the process of developing and maintaining a strategic fit between the organization's goals and capabilities, and its changing marketing opportunities.

The business portfolio is

The business portfolio is the collection of businesses and products that make up the company.

The mission statement is

The mission statement is the organization's purpose; what it wants to accomplish in the larger environment.

Marketing Implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Value chain

Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.

Value delivery network

Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system.

In the strategic planning​ process, the business portfolio is designed after​ ________.

defining the company mission

Market penetration achieves company growth by __________.

increasing sales of current products to current market segments without changing the product

Customer management organization

involves a customer focus and not a product focus for managing customer profitability and customer equity. Managers are responsible for developing strategies and plans for their specific customers.

Operating control

involves checking ongoing performance against the annual plan and taking corrective action when necessary.

Market development

involves identifying and developing new markets for its current products. For instance, managers could review new demographic markets. Perhaps new groups—such as seniors—could be encouraged. Managers could consider new geographic markets in U.S. markets and in non-U.S. markets, especially Asia.

Strategic control

involves looking at whether the company's basic strategies are well matched to its opportunities.

Market penetration

involves making more sales to current customers without changing its original product such as by adding new stores in current market areas to make it easier for customers to visit.

Product management organization

is useful for companies with different products or brands. Managers are responsible for developing strategies and plans for a specific product or brand.

Market organization

is useful for companies with one product line sold to many different markets. Managers are responsible for developing strategies and plans for their specific markets.

Product/market expansion grid

looks at new products, existing products, new markets, and existing markets for company growth opportunities.

Marketing control is __________.

the process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that the objectives are achieved