Exam 1 BA 370 Chap 2

What is sustainable competitive advantage?

An advantage over the competition that is not easily copied and thus can be maintained over a long period of time.

What are the 5 steps of a marketing plan?

1. Define the business mission and objectives 2. Conduct a situation analysis (SWOT) 3. Identify and evaluate opportunities using STP (Segmentation, Targeting, Positioning) 4. Implement marketing mix and allocate resources (Price, Place, Promotion, Product) 5. Evaluate performance using marketing metrics

What are the four major growth strategies?

1. Market penetration 2. Market development 3. Product development 4. Diversification

How is operational excellence achieved?

Also the second way to achieve a sustainable competitive advantage, operational excellence is achieved through efficient operations, excellent supply chain management, and a strong relationship with suppliers.

How is product excellence achieved?

Also the third way to achieve sustainable competitive advantage, product excellence is achieved by providing products with high perceived value and effective branding and positioning.

________ 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

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.

Product excellence

Which growth strategy is the riskiest?

unrelated diversification

What is a Question Mark in the Boston Consulting Group Matrix?

A Question Mark, (upper right quadrant) appear in high growth markets but have relatively low market shares.

What is a Star in the Boston Consulting Group Matrix?

A Star, (upper left quadrant) occur in high-growth markets and are high market share products.

What is a 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

What are the various components of a marketing strategy?

A firm's target market, marketing mix (four P's) , and method of obtaining a sustainable competitive advantage.

What is the diversification strategy?

A growth strategy by whereby a firm introduces a new product or service to a market segment it does not currently have.

What is the market penetration strategy?

A growth strategy that employs the existing marketing mix and focuses on the firms efforts on existing customers.

What is the market development strategy?

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

What is the product development strategy?

A growth strategy that offers a new product or service to a firms current target market.

What is unrelated diversification?

A growth strategy whereby a new business lacks any common elements with the present business.

What is a SWOT analysis?

A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats are examined.

What is a strategic business unit?

A strategic business unit is 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.

What is a Cash Cow in the Boston Consulting Group Matrix?

A Cash Cow, (lower left quadrant) are in low-growth markets but are high market share products.

What is a Dog in the Boston Consulting Group Matrix?

A Dog, (lower right quadrant) are in low growth markets and have relatively low market shares.

What is the final step in the planning process?

Evaluating the results of the strategy and implementation program using marketing metrics.

It is not always necessary to go through all the steps in the marketing planning process. T/F

False

The strategic planning process always proceeds sequentially through the five steps. T/F

False, planning processes can move back and forth between the steps as needed.

What does the segmentation, targeting, and positioning (STP) entail?

Firms use these processes to identify and evaluate opportunities for increasing sales and profits.

Woods, Inc. is a small, local heating and air conditioning business. The local military base is a potential source of growth, and Woods already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. Woods is considering a ________ growth strategy.

Market development

Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy.

Market penetration

Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ________ growth strategy.

Market penetration

What happens during the fourth step of the marketing plan?

Marketers implement the marketing mix ( four P's) and allocate resources.

For years, when considering new products, marketers at Bennett's Coffee and Tea asked themselves, "What would Kelsey think?" Kelsey was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Kelsey" represented Bennett's primary

Target market segment

Sustainable Competitive Advantage

Something the firm can persistently do better than its competitors.

What is the control phase and what happens during it?

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

What is the planning phase and what happens during it?

The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers (1) define the mission or vision of the business (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.

What is the implementation phase and what happens during it?

The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (2) implement the marketing mix using the four Ps.

What is market positioning?

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

What is market segmentation?

The process of dividing the market into groups of customers with different needs, wants, or characteristics.

What is target marketing?

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

Heidi has been assessing several of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heidi is trying to determine

The products relative market share

What is a situation analysis?

The second step in a marketing plan; 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.

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

market segmentation

What is a market segment?

a group of consumers who respond in a similar way to a given set of marketing efforts

How is customer excellence achieved?

Customer excellence is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service.

What are the Macro Strategies That Help a Firm Develop a Sustainable Competitive Advantage?

Customer excellence, Operational excellence, Product excellence, and Locational excellence

What is a marketing plan 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.

Target has announced that it would begin selling organic food products. In doing so, Target is most likely trying to

Attract a different market segment

How do marketing metrics help a firm?

By comparing results across regions, SBUs, product lines, and time periods, marketing metrics can help explain why things happened and also project the future.

How is locational excellence achieved?

By having a strong physical location and/or Internet presence.

What is integrated marketing communications (IMC)

Represents the promotion dimension of the four P's: encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.

Which of the following is likely to provide a sustainable competitive advantage? -Creating an efficient supply chain that lowers your costs -Lowering prices -Developing a strong mission statement -Using standard technology -Temporarily laying off staff

Creating an efficient supply chain that lowers your costs

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ________ growth strategy.

Diversification

How is operational excellence achieved?

Operational excellence is achieved through efficient operations and excellent supply chain and human resource management.

What are the three major phases of a marketing plan?

Planning, Implementation, and Control

What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future?

Portfolio Analysis

A(n) ________ is a group of products that consumers may use together or perceive as similar in some way.

Product line