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53 Cards in this Set
- Front
- Back
Choosing the Value |
Represents the “homework” marketing must do before any product exists. Marketers must segment the market, select the appropriate target, and develop the offering’s value positioning. The formula “segmentation, targeting, positioning (STP)” is the essence of strategic marketing. |
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Providing the Value |
Marketing must determine specific product features, prices, and distribution. |
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Communicating the Value |
By utilizing the sales force, Internet, advertising, and any other communication tools to announce and promote the product. The value delivery process begins before there is a product and continues through development and after launch. |
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Value Chain |
a tool for identifying ways to create more customer value. |
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Primary Activities |
(1) inbound logistics,or bringing materials into the business;(2) operations, or converting materials into final products; (3) outbound logistics, or shipping out final products; (4) marketing, which includes sales; and (5) service. Specialized departments handle the support activities—(1) procurement,(2) technology development,(3) human resource management, and (4) firm infrastructure. |
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Supply Chain |
Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network. |
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Core Competencies |
(1) It is a source of competitive advantage and makes a significant contribution to perceived customer benefits. (2) It has applications in a wide variety of markets. (3) It is difficult for competitors to imitate. |
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Distinctive Capabilities |
Excellence in broader business processes * market sensing, customer linking, and channel bonding |
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Marketing Plan |
It is the central instrument for directing and coordinating the marketing effort. It operates at two levels: strategic and tactical. |
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Tactical Marketing Plan |
Specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. |
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Strategic marketing plan |
Lays out the target markets and the firm’s value proposition, based on an analysis of the best market opportunities. |
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Value Exploration |
How a company identifies new value opportunities. |
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Value Creation |
How a company efficiently creates more promising new value offerings |
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Value Delivery |
How a company uses its capabilities and infrastructure to deliver the new value offerings more efficiently. |
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Mission Statements |
*To share with managers, employees, and (in many cases) customers.A clear, thoughtful mission statement provides a shared sense of purpose, direction, and opportunity. *are at their best when they reflect a vision, an almost “impossible dream” that provides direction for the next 10 to 20 years. |
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Tactical Marketing Plan |
Specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. |
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Transportation |
the horse and carriage, automobile, railroad, airline, ship, and truck are products that meet that need. |
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Target Market |
tends to focus on selling a product or service to a current market. |
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Three Dimensions of Business |
customer groups, customer needs, and technology. |
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INTENSIVE GROWTH |
A review of opportunities for improving existing businesses. |
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Market-penetration strategy |
The company first considers whether it could gain more market share with its current products in their current markets |
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Market-development strategy |
It considers whether it can find or develop new markets for its current products |
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Product-development strategy |
It considers whether it can develop new products of potential interest to its current markets |
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Diversification strategy. |
The firm will also review opportunities to develop new products for new markets. |
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Product-market expansion grid |
It considers the strategic growth opportunities for a firm in terms of current and new products and markets. |
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INTEGRATIVE GROWTH |
A business can increase sales and profits through backward, forward, or horizontal integration within its industry. |
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DIVERSIFICATION GROWTH |
makes sense when good opportunities exist outside the present businesses—the industry is highly attractive and the company has the right mix of business strengths to succeed. |
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Organization |
Consists of its structures, policies, and corporate culture, all of which can become dysfunctional in a rapidly changing business environment. |
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Corporate Culture |
“the shared experiences, stories, beliefs, and norms that characterize an organization.” |
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Scenario Analysis |
develops plausible representations of a firm’s possible future using assumptions about forces driving the market and different uncertainties. Example question: “What will we do if it happens?” |
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Business Mission |
Each business unit needs to define its specific mission within the broader company mission. EX: “To target major television studios and become their vendor of choice for lighting technologies that represent the most advanced and reliable studio lighting arrangements.” |
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SWOT Analysis |
The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats |
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EXTERNAL ENVIRONMENT (OPPORTUNITY AND THREAT) ANALYSIS |
A business unit must monitor key macroenvironment forces and significant microenvironment factors that affect its ability to earn profits. |
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Marketing Opportunity |
Is an area of buyer need and interest that a company has a high probability of profitably satisfying. |
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Problem detection method |
Asks consumers for their suggestions |
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Ideal method |
Imagine an ideal version of the product or service |
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Consumption Chain Method |
Asks them to chart their steps in acquiring,using,and disposing of a product. |
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Environmental threat |
Is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit. |
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Goal formulation |
Developing specific goals for the planning period. |
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Overall cost leadership |
Firms work to achieve the lowest production and distribution costs so they can underprice competitors and win market share. They need less skill in marketing. |
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Differentiation |
The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market. The firm seeking quality leadership, for example, must make products with the best components,put them together expertly,inspect them carefully, and effectively communicate their quality. |
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Focus |
The business focuses on one or more narrow market segments, gets to know them intimately, and pursues either cost leadership or differentiation within the target segment. |
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Strategic group |
firms directing the same strategy to the same target market |
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Product or service alliances |
One company licenses another to produce its product, or two companies jointly market their complementary products or a new product. |
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Promotional alliances |
One company agrees to carry a promotion for another company’s product or service. |
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Logistics alliances |
One company offers logistical services for another company’s product. |
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Pricing collaborations |
One or more companies join in a special pricing collaboration. |
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Partner relationship management (PRM) |
Corporations have begun to develop organizational structures to support them, and many have come to view the ability to form and manage partnerships as core skills |
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Style |
Means company employees share a common way of thinking and behaving. |
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Skills |
Means employees have the skills needed to carry out the company’s strategy. |
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Staffing |
Means the company has hired able people, trained them well, and assigned them to the right jobs. |
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Shared Values |
Means employees share the same guiding values. |
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Marketing Plan |
Is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. |