Chapter 2 Guided Notes
Chapter 2 Guided Notes MKT1211K
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This 5 page Study Guide was uploaded by Lia Pearson on Tuesday September 15, 2015. The Study Guide belongs to MKT1211K at Jamestown Business College taught by Mrs. Halftown in Summer 2015. Since its upload, it has received 82 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Jamestown Business College.
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Date Created: 09/15/15
Chapter 2 Guided Notes 1 Explain the various components of a marketing strategy A marketing strategy has three basic components l The rms target market 2 The four P s The marketing mix 3 The bases on which the rm will be competitive on a long term basis The marketing mix is an important component as it sets the basis for the future and for more complex components A good marketing strategy helps a rm to be success ll 2 Describe in detail the four macro strategies that are used to create and deliver value and to develop sustainable competitive advantages a Customer Excellence Customer excellence focuses on keeping as well as gaining long term loyal customers by providing them with excellent customer service Example A rm having a customer loyalty program b Operational Excellence Having ef cient operations and having excellent supply chain management and strong relationships with the rms suppliers Example Keeping in touch with all the rms in the supply chain warehouses etc Example c Product Excellence Providing products to consumers that have a high perceived value effecting branding and effective positioning as well as maintaining and improving product quality Example a software update d Locational Excellence Location is perceived to be the most important aspect of a company Firms who wish to be successful have to be accessible to all consumers Example A McDonalds being across the street from a shopping mall Example 3 Describe the 5 stages of a marketing plan a Step 1 De ne the Business Mission The business mission also known as the mission statement is a broad description of what the rm plans to so activities it plans to take part in as well as the main goals of the company Almost all businesses big or small have a mission statement A mission statement helps to show the consumers and potential investors what the company is all about b Step 2 Conduct a Situation Analysis After the mission statement is established a situation analysis is then performed The rm uses SW0T as a guide to analyze Strengths Weaknesses Opportunities and Threats After SWOT has been examined the rm then uses CDSTEP Cultural Demographic Social Technological Economic and Political factors to consider any uncertainties and unexpected changes c Step 3 Identify and Evaluate Opportunities Using STP Companies use STP Segmentation Targeting and Positioning as a way to increase sales and pro ts The rm rst divides the markets into different groups or segments and then decides which one is most beneficial for the rm to target Finally the rm decides how their products should be positioned to best meet the needs of the target market group that the rm has chosen d Step 4 Implement Marketing Mix and Allocate Resources In the fourth step the rm takes all of the information learned four P s market etc and puts it into action At this point marketers make decision on how to spend their limited resources in order to best bene t the rm e Step 5 Evaluate Performance Using Marketing Metrics The nal step of this process is to evaluate the results of the strategy and implementation program using marketing metrics A metric is a measuring system that quanti es a trend By understanding the causes of performance the rm can then use that information to better the rm making adjustments Where they are needed 4 Explain the concept of Market Share A market share is a percentage representing how much of a specific market any particular rm accountsfor 5 Explain each quadrant in the Relative Market Share Matrix a Stars Stars are rapid growing yet usually short lived market share products Stars then usually turn into cash cows b Cash Cows Cash cows grow slowly over time and are high market share products c Question Marks Question marks are in high growth markets but are low in value Companies often turn them into cash cows or stars d Dogs Dogs are in low growth markets and have a fairly low market share value 6 Explain in detail each of the different growth strategies and provide an example ef each a Market Penetration 3 A market penetration strategy employs the existing marketing mix and focuses the rms efforts on existing customers An example of this strategy would be encouraging customers to purchase more when they visit b Market Development A market development strategy uses its existing marketing tactics to reach new market segments An example of this would be a show broadcasting on air in a new country c Product Development A product development strategy creates new products on a regular basis to keep consumers interested in and buying their products An example of this would be the IPhone 5 which upgraded to the IPhone 6 then the 6 Plus d Diversi cation Diversi cation strategy is implemented by marketing to a market segment that was previously untouched which opens up more doors to make a pro t An example of this would be building a hospital in a place where there are no hospitals such as in the middle of the desert or the rainforest
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