Marketing Strategy Vocabulary Flashcards

Vocabulary flashcards covering core concepts, first principles, STP framework, and customer-centricity from Chapter 1 marketing strategy notes.

Marketing Strategy

The decision a company makes to stand out from competitors in customers' minds so the company can make and keep stakeholders happy.

First Principles of Marketing Strategy

Core building blocks that apply everywhere, used because case studies do not apply to every company due to differences in customers, competitors, and industries.

Four First Principles of Marketing Strategy

1. All customers differ & manage customer heterogeneity; 2. All customers change & manage customer dynamics; 3. All competitors react & build sustainable competitive advantage; 4. All resources are limited & manage trade-offs.

Latent Customer Differences

Hidden customer needs that are not visible yet because laws block certain products, technology is not advanced enough, or costs are too high.

STP

An acronym for Segmenting, Targeting, and Positioning, which represents external alignment to determine who to target.

Segmenting

Breaking or dividing the whole market into groups based on needs, where people in the same segment have similar needs.

Targeting

Evaluating and selecting market segments based on market attractiveness, competitive strength, and SWOT analysis.

Good Segments

Market segments that are based on needs, different from other segments, sustainable, and easy to identify.

Positioning

Making an offering or product stand out in the minds of target customers, affected by product, price, place, and promotion.

Perceptual Maps

Visual tools that show how customers see brands.

Positioning Statement

A statement that must answer who the target customers are, what needs the product solves, and why it is the best option.

Customer Centricity

Putting customer needs at the center of the company's vision, mission, strategy, culture, and metrics to achieve internal alignment on how to serve them.

Customer-Centric Structures

Organizational structures where companies reorganize around customer groups rather than product lines, such as Intel reorganizing into digital home and mobile computing units.

Long-Term Performance of Customer Centricity

Performance trajectory where short-term performance drops during the learning stage, but long-term performance improves after 9-10 quarters.

Inputs (3 Cs)

The core inputs for managing customer heterogeneity: Customers (needs, demographics, size, growth), Company (strengths and weaknesses), and Competitors (strengths and weaknesses).

Outputs of Managing Customer Heterogeneity

The resulting deliverables from the customer heterogeneity framework, consisting of segments, target segments, and positioning statement.