Chapter 2 Marketing Strategy Planning

Flashcards cover core concepts from Chapter 2 Marketing Strategy Planning, including the marketing management process, strategic planning, marketing mix (Four Ps), target vs mass marketing, marketing planning vs strategy vs program, customer lifetime value and customer equity, growth strategies, SWOT, and key terms from the lecture. Also includes common checks from the Checking Your Knowledge sections.

What is the Marketing Management Process (Exhibit 2-1)

A sequence of steps to plan, implement, and control marketing activities: set objectives; evaluate opportunities; create marketing strategies; prepare marketing plans; develop marketing programs; implement and control; measure results; evaluate progress; adjust plans as needed.

What is strategic (management) planning?

Long-range planning to set objectives and allocate resources to achieve them.

What is a marketing strategy?

An approach for selecting a target market and using the marketing mix to satisfy needs and gain a competitive advantage.

What is a target market?

A clearly defined group of customers at whom the company aims its marketing program.

What is the marketing mix?

The set of four interrelated decisions—Product, Place, Promotion, and Price—that create the value proposition for the target market.

What is target marketing?

Marketing to one or more specific market segments with tailored mixes.

What is mass marketing?

Marketing to a broad audience with a single program, assuming similar needs across buyers.

What is a channel of distribution?

The path a product takes from producer to consumer, often via wholesalers and retailers.

What is personal selling?

A face-to-face, individualized selling approach tailored to the customer.

What is mass selling?

Nonpersonal promotion aimed at large audiences, including advertising, publicity, and sales promotion.

What is advertising?

Paid, nonpersonal communication in media to inform or persuade a target audience.

What is publicity?

Nonpaid exposure of an organization or its products in the media.

What is sales promotion?

Short-term incentives designed to encourage purchase or trial.

What is a marketing plan?

A written document detailing marketing objectives, strategies, budgets, and actions for a specific period.

What is a marketing program?

A coordinated set of marketing activities and tools designed to achieve the strategy and reach the target market.

What is customer lifetime value (CLV)?

The present value of the expected net profit from a customer over the entire relationship.

What is customer equity?

The total of the CLVs of all customers—the value of the customer base.

What is retention rate?

The percentage of customers who remain with the company over a given period.

What is acquisition cost?

The cost of acquiring a new customer.

What are breakthrough opportunities?

Opportunities with potential for substantial competitive advantage, not just small gains.

What is competitive advantage?

An attribute that allows a company to perform better than competitors in the market.

What is SWOT analysis?

A framework for analyzing Strengths, Weaknesses, Opportunities, and Threats.

What is differentiation?

Creating a distinct product or brand identity that customers perceive as different from competitors.

What is market penetration?

Growth strategy aimed at increasing sales to existing customers in existing markets.

What is market development?

Growth strategy expanding into new markets or segments with existing products.

What is product development?

Growth strategy creating new or improved products for existing markets.

What is diversification?

Growth strategy entering new products and new markets.

How do the four Ps relate to the whole product?

All four Ps (Product, Place, Promotion, Price) contribute to the total product offering; selecting the target market guides strategy.

What is the external market environment?

External factors such as customers, competitors, suppliers, and regulations that affect opportunities and threats.

What is the difference between marketing strategy, marketing plan, and marketing program? (short)

Strategy is the overall approach; plan is the specific actions and budgets; program is the coordinated set of activities to implement the plan.

What is a target market in marketing planning?

A defined group of consumers or organizations at whom marketing efforts are directed.

What is segmentation and targeting?

Segmentation divides the market into groups; targeting selects which groups to serve.

What are differentiation and positioning?

Differentiation creates unique benefits; positioning is how the product is perceived in the minds of the target market relative to competitors.

What should be considered about international opportunities?

Better trends, competitive advantage, early start, and risks involved in a smaller, more connected world.

What is market development vs market penetration in strategic terms?

Market penetration increases existing-market sales; market development expands into new markets.

What is product development in growth strategy terms?

Developing new or improved products for existing markets.

What is diversification in growth strategy terms?

Entering new products and new markets.

What is marketing analytics?

The analysis of data to improve marketing decisions and performance.

What is operational decision in marketing planning?

Day-to-day decisions about executing the marketing plan and programs.