MKT 355 Strategic Planning, Positioning, and Segmentation

Vocabulary flashcards covering strategic planning, situation analysis (5 Cs, PEST, Porter's 5 Forces, SWOT), market positioning, perceptual mapping, positioning errors, and market segmentation strategies.

Strategy (in Strategic Planning)

Finding the 'right' match between a firm's internal capabilities and the external environment.

Marketing Strategy

Selecting target markets and creating a marketing mix that satisfies the needs of those target markets.

Marketing (AMA Definition)

According to the American Marketing Association, the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

5 Cs Analysis

A situational analysis framework evaluating Customer, Context, Company, Collaborators, and Competition.

Utilitarian and Hedonic Customer Needs

Utilitarian needs refer to practical and functional requirements, while hedonic needs involve emotional, sensory, or pleasure-driven customer desires.

Purchase Decision Process

The process consumers go through when making a buying decision, consisting of problem recognition, search for information, analysis of alternatives, decision, and after-purchase evaluation.

PEST Analysis

An external analysis tool evaluating Political/Legal, Economic, Social, and Technological factors impacting an industry and organization.

Porter's Firm Strategies

Three generic strategic orientations for competitive position: Cost Leadership, Differentiated, and Focused.

Competitive Advantage Types

Four key areas of excellence through which a company achieves competitive advantage: Product excellence, Operational excellence, Customer excellence, and Location excellence.

Collaborators

Stakeholders involved in marketing a product, including suppliers, distributors, and retailers.

Direct vs. Indirect Competitors

Direct competitors offer identical or highly similar products to the same target market, whereas indirect competitors offer substitute products satisfying the same general customer need.

Levels of Competition

A four-tier model categorizing competition into Product Form, Product Category, Generic, and Budget competition.

Porter's 5 Forces

An industry structure model that evaluates industry dynamics and profit potential through Competitive Rivalry, Threat of New Entrants, Bargaining Power of Buyers, Bargaining Power of Suppliers, and Threat of Substitute Products.

Internal Environment Analysis

Evaluating an organization's current strategy and performance, resources, and internal structure to understand strategic fit relative to external conditions.

SWOT Analysis

A framework assessing internal Strengths and Weaknesses alongside external Opportunities and Threats.

SWOT Matrix Strategy (Piercy 1992)

A decision framework where firms convert or leverage strengths and opportunities while converting or minimizing/avoiding weaknesses and threats.

Marketing Objectives

Specific and quantifiable benchmarks used to assess progress toward a goal, characterized as attainable, continuous or discontinuous, time-bound, and assigned to specific responsible parties.

Marketing Goals

Broad, intangible statements regarding where a firm wants to go, characterized as attainable, consistent, and comprehensive.

Market Positioning

A dynamic process determined by a firm's distinctive competence and sustainable competitive advantage that establishes how a product is perceived in consumers' minds.

Perceptual Map

A visual matrix used to map and analyze competitors' market positions based on key evaluation dimensions such as price, quality, attributes, or application.

Position vs. Positioning Statement (Beckwith)

According to Harry Beckwith, a position is a cold-hearted statement of how you are currently perceived by prospects, whereas a positioning statement expresses how you wish to be perceived across all media.

Under-positioning

A positioning error that occurs when a company fails to establish any clear position in the market.

Over-positioning

A positioning error that occurs when a firm provides buyers with too narrow a picture of the company.

Confused Positioning

A positioning error that leaves buyers with a confused or unclear image of the company.

Doubtful Positioning

A positioning issue where buyers find it difficult to believe the firm's positioning claims.

Market Segmentation

The process of dividing a broad target market into subgroups of consumers with similar needs and wants.

Four Bases of Segmentation

The four main categories used to segment consumer markets: Demographic (age, gender, income, family size), Geographic (nations, regions, states, neighborhoods), Psychographic (psychological traits, motivation, attitudes), and Behavioral (loyalty, price sensitivity, occasions, usage rate).

Mass Marketing

A traditional segmentation strategy utilizing a single marketing mix targeted at all consumers across the market.

Differentiated Marketing Strategy

A segmentation approach where a firm creates more than one marketing mix aimed at more than one market segment.

Market Concentration Strategy

A segmentation strategy where a firm directs a single marketing mix focused entirely on a single market segment.

Target Market Evaluation Criteria

The factors used to evaluate target market attractiveness: segment size, growth rate, level of competition, and capability fit with market needs.