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Marketing Strategy
Vocab & Notes For Midterm
114
Marketing
Undergraduate 4
02/05/2011

Additional Marketing Flashcards

 


 

Cards

Term
Marketing Plan consists of
Definition

Situational Analysis

 Marketing objectives

Marketing Strategy

Implement and control the plan

Term
Marketing Strategy
Definition

Strategy to be used to achieve the marketing objectives

Term
Strategic Planning
Definition
it is a long-term planning that includes an organization’s goals and objectives
Term
Strategic Plan Involves
Definition

Corporate mission statement

Specifying the organizational objectives

Developing the organizational strategies

Developing a portfolio plan

Term

   Corporate mission statement (definition)

Definition

A long-term view or vision of what the organization wants to become

Term

Corporate mission statement (what it provides)

Definition

§  Provide a lot of benefits to the company

§  Provides employees a sense of direction

Term
organizational objectives
Definition

§  Objectives are derived from the mission statement

§  Objectives must be specific and measurable

·         Helps to punish or reward the managers

Term
organizational strategies
Definition

§  These are general approaches to achieve the desired objectives

Term
Organizational Strategies Include
Definition

Market Penetration

Market Development

Product Development

Diversification

Term
Market Penetration
Definition

They try to penetrate more into the existing market

  • Present Market/ Present Target
  • Company takes existing product and sale it to consumers
  • Makes consumers buy the product in larger qualities
Term
Market Development
Definition

 Put product in new market

Present type, New market

Term
Product Development
Definition

Reaching same target with different products

New Product, Present Market

Term
Diversification
Definition

o   Develop new product for new market

New Product, New Market

Term
Developing a Portfolio Plan includes:
Definition
Strategic Business Units
Term

  Strategic Business Units (SBU) Definition

Definition

·         Any organizational unit that has a manager with sales and profit responsibilities

Term
More info on SBUs
Definition

·         Are organized by divisions of a company, product lines, etc.

  •       Have distinct missions
  •       Have their own competitors

Term
Product Line
Definition
different brands within the product
Term
Starbucks has new sizes
Definition

Trenta: 31 oz

Only for iced drinks, not coffee

Larger than average size of stomach

 

Term
Boston Consulting Group (BGC) model
Definition

o   Useful to assess each SBU and assign it most reasonable objective

Term
Growth/ Market Share includes:
Definition
  • Stars
  • Question Marks
  • Cash Cows
  • Dogs
Term
Stars
Definition
• SBUs that have high market share and high growth
• Example: iPhone for apple
• They are good
• And costs money to maintain this position
Term
Question Marks
Definition

·         SBUs low market share, high growth

·         Example: Microsoft Connect... video games controlled by body movement

·         New products

·         Require a lot of cash

o   Cash comes from cash cow

Term
 Cash Cows
Definition

·         SBUs high market share, low growth area

·         Example: Microsoft Office products

·         They generate a lot of cash and they don’t have to spend much to “upgrade”

o   Have low costs

·         Finance the stars

Term
Dogs
Definition

·         SBUs with low market share and low growth

·         Example: Type writers or even travel agents

·         Companies usually end in this category

Term
Life-Cycle of a successful SBU
Definition

  Question marks -> Stars -> Cash Cow -> Dogs

Term
What are the categories in Marketing Wars?
Definition

5 different war strategies

  • Frontal Attack
  • Flanking Attack
  • Encirclement Strategy
  • Leapfrog Strategy
  • Guerilla Attack
Term
Frontal Attack
Definition

First strategy in marketing wars

  • used when both companies are equal strength

 

Term
The two companies in the marketing wars
Definition

Challenger

&

Target Competitor

Term
Flanking attack
Definition

Second strategy in marketing wars

§  Where you don’t fight head on with your competitor, but you fight from the side

Example: you fight their weakness

Term
Encirclement Strategy
Definition

You attack from all sides

 

Example: Apple computers being able to use Windows operations

Term
Leapfrog Strategy
Definition

§  Jump over the competitor: you bypass your competitor

§  Concentrate in different markets that aren’t used

Term
Guerrilla Attack
Definition

Fight your competitor from behind

 

Example: hiring the key people from the competitor

Term
Decision Process
Definition
need recognition, alternative search, alternative evaluation, purchase decision, post-purchase evaluation
Term
Alternative Search
Definition

o   Second part of decision process

o   Internal: from memory

o   External: go to stores, internet, etc.

o   Results of search yields an evoke set

§  Limited brands

Term
Evoke Set
Definition
the shortlist of potential products that the consumer has to choose from within the purchasing decision-making process
Term

·         Post-Purchase Evaluation

Definition

o   The last part of the decision process

o   In some cases, it may result in cognitive dissonance

Term

   Reduce cognitive dissonance

Definition

§  Provide Warranties

§  Good return policy

·         Allow returns or exchanges

§  Coupons

§  Discount Products

§  Provide after-sale service

§  Make realistic claims about product’s performance

Term
WINIM Delta Airlines
Definition

o   Silent Auction

§  How much money you are willing to be bumped out of the flight

§  Shows a list of all the people to be bumped out

o   Bad for passengers, good for Delta

Term
WINIM Intellidrive
Definition

o   30,000 people die in car crashes in the united states

§  Mainly because of cell phone usages

o   Ford, GM, Toyota

o   Allows cars to communicate with each other and warn drivers of crashing

Term
Market Segment
Definition

o   A group of individuals or organizations that share one or more similar characteristics which make them have relatively similar product needs

Term
Market Segmentation
Definition
divide the market into groups
Term
Selecting Target Markets involves
Definition

Undifferentiated Strategies

Market segmentation approach

Term
Undifferentiated Strategy
Definition

§  Example: salt

§  Company-- single marketing mix-- target market

§  Use when most consumers have similar needs

§  Company uses a single marketing mix

Term
Market Segmentation Approach
Definition

§  Company-- a separate marketing mix for each segment-- target market

§  Use when the customers have heterogeneous preferences

§  Should be able to design a separate marketing mix for each segment

Term
Bases for segmenting consumer markets
Definition

§  Demographic

§  Geographic

·         Market density

o   Example: Bloomingdales in high populated areas

§  Psychographic

·         Personality attributes

·         Motives

·         lifestyles

§  Benefit segmentation

·         Example: toothpaste

o   People choose by cavity protection, whitening, taste, etc.

§  Usage-rate segmentation

·         Example: alcohol

o   College students

Term
A priori segmentation
Definition

§  Segmentation basis is decided before conducting any research

§  Use if the firm knows markets very well

Term

   Post hoc segmentation

Definition

§  Segmentation basis is decided after conducting research

§  Useful for marketing entirely new products

Term
Product Strategy Elements (3)
Definition
  • Product Components
  • Brand
  • Brand Equity
Term
Product Components
Definition

Tangible

Intangible

 

Term
Brand
Definition

o   Brand is name, design symbol (logo), or any other features that identify a seller’s product

Term
Brand Equity
Definition
is the marketing and financial value associated with a brand
Term
Elements of Brand Equity
Definition

§  Brand loyalty

§  Name awareness

§  Perceived quality

§  Brand associations

§  Other proprietary brand assets

Term
The Different Branding Policies
Definition
  • Multi- Branding
  • Line extension
  • Brand extension
  • Family branding
  • Dual branding
Term
Multi-branding
Definition

o   assigning different brand names to each product

§  Example: Ivory, Tide, Cheer, Dash, Bold, Era, Solo

Term
Line extension
Definition

o   using the existing brand name or part of the name to facilitate entry into a new market segment

§  Example: Coke, Diet Coke

Term
Line extension advantages
Definition

§  Advantages

·         Easier to promote

·         Easier to extend

Term
Line extension disadvantages
Definition

·         If something happens to one of the products, then people would stop using anything that is associated with the product

Term
Brand extension
Definition

o   uses an existing brand to enter a different product class

§  Example: Ivory soap, Ivory shampoo

Term
Family branding
Definition

o   attaches the corporate name to a product to either enter a new market or new product class

§  Example: Honda lawn mower

Term
Dual branding
Definition

o   integration of two or more brands

§  Example: Tide w/ Febreeze

Term
Different Types of Brands (3)
Definition

Manufacturer (national)

Private Distributor/ Private Label Brands

Generic

Term
Manufacturer Brands
Definition

o   Example: Crest

o   Target Market:

§  Risk avoiders and quality conscious

o   Best quality control

o   They usually get primary shelf space

o   Put a lot of money advertising the products

o   Promoted by manufacturers

o   Priced high

o   Intended to generate brand loyalty

Term
Manufacturer Brands target market
Definition
risk avoiders and quality conscious
Term

·         Private Distributor/ Private Label Brands

Definition

o   Example: Sears dryer

o   Offer high profit margins to the retailers

o   Target Market is price- conscious

o   They promote store loyalty

Term
Private Distributor/ Private Label Brands Target Market
Definition
price- conscious
Term
Generic Brands
Definition

o   Don’t mention manufacturer or private distributor

o   No name

Term
Different Types of Distribution (3)
Definition

o   Selective-supplying to a moderate amount of place

o   Intensive- a lot of stores are selling it

o   Inclusive- in clumps

Term
Selective Distribution
Definition
supplying to a moderate amount of places
Term
Intensive Distribution
Definition
a lot of stores are selling it
Term
Product Life Cycle (PLC)
Definition

o   Introduction-> Growth Stage-> Maturity Stage-> Decline Stage

Term
Industry profits are negative in the beginning of the PLC because.....
Definition
of more costs and less sales
Term
Industry profits grow in the growth stage because.....
Definition
they charge more in that stage
Term
Introduction Stage objective
Definition
to establish market
Term
Introduction Stage Profits
Definition
negligible (could be negative)
Term
Introduction Stage Distribution
Definition
selective
Term
Introduction Stage Prices
Definition

Pirces are skimming or penetration strategy

·         Skimming: selling at a higher price

·         Penetration: sale it at a lower price

 

Term
Introduction Stage Promotion
Definition

§  Target early adopters-(disposable income, innovators)

·         Use free samples, coupons

Term
Introduction Stage Competitors
Definition
Few comptitors
Term
Growth Stage Objective
Definition
Build Sales
Term
Growth Stage Profits
Definition
increase
Term
Growth Stage Distribution
Definition
intensive
Term
Growth Stage Prices
Definition
High
Term
Growth Stage Promotion
Definition
Focus on brand benefits
Term
Growth Stage Competitors
Definition
Competitors are growing
Term
Maturity Stage Objectives
Definition

Defend your market share

add new market segments

Term
Maturity Stage Profits
Definition
Profits start falling
Term
Maturity Stage Distribution
Definition
Intensive distribution
Term
Maturity Stage Prices
Definition
low; avoid price wars
Term
Maturity Stage Promotion
Definition
use sales promotions (coupons) to aid brand switching
Term
Maturity Stage Competitors
Definition
Intense competition
Term
Decline Stage Objectives
Definition
plan to extend its life or delete
Term
Decline Stage profits
Definition
profits are low
Term
Decline Stage Distribution
Definition
Selective Distribution
Term
Decline stage prices
Definition
very low prices
Term
Decline Stage Promotion
Definition
Minimal promotion
Term
Decline Stage Competitors
Definition
Declining competitors
Term
Positioning
Definition

·          refers to the place a brand occupies in consumers’ minds relative to competing offerings

o   Examples

§  Marlboro

§  Virginia Slims

·         Targeted towards women

§  Wal-Mart

·         Use low price strategy

Term
Perceptual Maps
Definition
helps companies to figure out where consumers position products in their mind
Term
The closer the brands are in the perceptual map........
Definition
greater is the competition between them
Term
Perceptual Maps are good for...
Definition
positioning and repositioning strategies
Term
Perceptual maps are helpful to....
Definition
determine their current positions
Term
Perceptual maps helps to identify...
Definition
niches in the market
Term
The Four Categories of Competitors are...
Definition
  • the laid back competitor
  • selective competitor
  • tiger competitor
  • stochasitc competitor
Term

o   The laid-back competitor

Definition

§  One that does not react quickly or strongly to a rival’s move

·         Example: Bose (the speaker company)

§  They think that their customers are loyal

Term
The selective competitor
Definition

§  One that reacts only to certain types of attacks

Term
The tiger competitor
Definition

§  Example: Bill Gates

§  One that reacts swiftly and strongly to any assault

Term
The stochastic competitor
Definition

§  One that does not exhibit a predictable reaction

§  Example: RC Cola & Pepsi

·         They might react to price changes in different ways

Term
Relations with competitors are (4)
Definition
  • conflicts
  • coexistence
  • cooperation
  • collusion
Term
Conflicts occurs....
Definition
if players have incompatible objectives
Term
Coexistence occurs...
Definition
when competitors define their niches
Term
Collusion can be...
Definition
illegal
Term
Direct collusion
Definition

·         Example: Price fixing by Wal-Mart and Target

o   This is illegal

Term
Indirect collusion
Definition
involves signaling
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