Marketing Chapter 2Marketing strategy- a firms target market, marketing mix, and method of obtaining asustainable competitive advantage- 3 things:o Identifies a firms target marketso a related marketing mix, it’s 4 Ps ando The bases on which the firm plans to build a sustainable competitive advantageSustainable competitive advantage- something the firm can persistently do better than its competitorsCustomer Value- Locational Excellence, Operational Excellence, Customer Excellence, and Product Excellence- Four macro, or overarching, strategies that focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages.o Customer excellence- focuses on retaining loyal customers and excellent customer serviceo Operational excellence- achieved through efficient operations and excellent supply chain and human resource managemento Product excellence- having products with high perceived value and effective branding and positioningo Locational excellence- having a good physical location and Internet presence. Customer Excellence- is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. CRM- customer relationship management program. Firms can identify members through loyalty cards or membership information the consumer provides when he or she makes a purchase.Marketing Plan- a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.Planning Phase- the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, define the mission orvision of the business and evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential successImplementation phase- the part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging insegmentation, targeting, and positioning and (2) implement the marketing mix using the 4 PsControl Phase- the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions. Mission Statement- a broad description of a firm’s objectives and the scope of activities it plans to undertake. Tries to answer two main questions: What type of business are we? What do we need to do to accomplish our goals and objectives?Situational Analysis- second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknessesand the external environment in terms of its Opportunities and Threats.STP- the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.Market segment- a group of consumers who respond similarly to a firm’s marketing efforts.Market segmentation- the process of dividing the market into groups of customers with different needs, wants, or characteristics- who therefore might appreciate products or services geared especially for themTarget Marketing (Targeting)- the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.Market positioning- involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. Products- anything that is of value to a consumer and can be offered through a voluntary marketing exchange.Metric- a measuring system that quantifies a trend, dynamic, or characteristic. Strategic Business Unit (SBU)- a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.Product Line- groups of associated items, such as those that consumers use togetheror think of as part of a group of similar products.Market Share- percentage of a market accounted for by a specific entity.Relative Market Share- a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the largest firm in the industry.Market Growth Rate- the annual rate of growth of the specific market in which the product competes. Market Penetration Strategy- a growth strategy that employs the existing marketingmix and focuses the firm’s efforts on existing customers.Market Development Strategy- a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international. Product Development Strategy- a growth strategy that offers a new product or service to a firm’s current target market. International expansion generally is riskier than domestic expansion because firms must deal with differences in government regulations, cultural traditions, supply chains, and languages. Diversification Strategy- a growth strategy whereby a firm introduces a new product or service to market segments that it does not currently serve.Related Diversification- a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.Unrelated Diversification- a growth strategy whereby a new business lacks any common elements with the present