Term
| What are the 2 levels are marketing decision-making? |
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Definition
Inner: Operational Strategy Decisions
Outer: Marketing Strategy Decisions |
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Term
| What are the characteristics of operational strategy decisions? |
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Definition
- Pertain to the 4 P's
- Short term (1 year)
- Consists of an annual marketing plan in an effort to form plans for the long term |
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Term
| What are the characteristics of marketing strategy decisions? |
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Definition
- Pertain to scope, differentiation and positioning
- Long term (3-5 years out) |
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Term
| What is marketing strategy and what three factors must be decided upon? |
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Definition
What a firm is going to do to achieve an objective
1. Scope (i.e How many customers?)
2. Differentiation across market segments (i.e. one marketing program or many?)
3. Positioning (i.e. how will you communicate unique value to target?) |
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Term
| What factor does most of the marketing strategy decision-making pertain to? |
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Definition
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Term
| What does economies of scope refer to? |
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Definition
| A proportionate saving gained by producing two or more distinct goods, when the cost of doing so is less than that of producing each separately. |
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Term
| What does economies of scale refer to? |
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Definition
| a proportionate saving in costs gained by an increased level of production |
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Term
| Generic marketing strategies |
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Definition
- Differentiation (uniqueness, wide industry)
- Overall cost leadership (low cost position, wide industry)
- Focus/Niche [differentiation based] (Particular segment, uniqueness)
- Focus[cost based] (particular segment, low cost position) |
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Term
| What are cost leadership markets and what strategies are required? |
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Definition
A share of the market covers all segments and focus on keeping costs low
- Agressive construction of efficient scale facilites
- Cost minimization in R&D, service, sales, etc.
- Tight cost and overhead control
- Avoidance of marginal customer accounts, but service to all major customer groups
- Design for ease of manufacturing
- Aggressive pricing
- Standardized production
- Broad product line
i.e. Walmart, Amazon, Home depot |
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Term
| What are focused marketers and markets and what strategies are required? |
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Definition
Share of market covers an individual segment that the organization wants to dominate
- Concentration on particular buyer group, product line, geographic market, etc.
- Extensive market research and R&D
- Want to meet segment's needs more than anybody else
i.e. sand board companies, long board companies |
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Term
| What are differentiated marketers and markets and what strategies are required? |
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Definition
Has a share of market in each segment
- Participation in all significant market segments
- Strong reputation and image
- Pursuit of scale/scope economies
- Strong R&D and product commercialization skills
- Well developed marketing skills - sales, promotion, distribution
i.e. Timex |
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Term
| What are the factors that influence choice of marketing strategy? |
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Definition
- Customer buying behaviour
- Cost behaviour
- Company resources and skills |
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Term
| How does customer buying behaviour influence the choice of marketing strategy? |
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Definition
- Customer price sensitivity
- System vs. components purchasing
- Differentiation of customer needs |
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Term
| What are 7 marketing strategies designed to create access barriers? |
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Definition
1. Regulatory approval cycles
2. Economies of scope/scale
3. Monopolization of a scarce resource
4. Proprietary Technology/IP
5. Application expertise
6. Marketing expertise
7. Customer Loyalty |
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Term
| Which marketing strategies designed to create access barriers are considered the primary barriers created by marketing? |
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Definition
- Customer loyalty
- Marketing expertise
- Application expertise
- Proprietary technology/IP |
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Term
| What is meant by a primary barrier created by marketing? |
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Definition
| A barrier that is going to be durable overtime and going to prevent competitors to copy |
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