Things I should have learned in Marketing: Jeopardy edition should

serve as a guide for what the organization wants to accomplish.serve as a guide for what the organization wants to accomplish. be “market-oriented” rather than “product-oriented”.be “market-oriented” rather than “product-oriented”. be neither too narrow, nor too broad.be neither too narrow, nor too broad. fit with the market environment.fit with the market environment. be motivating.be motivating.

 What is a mission Statement? Statement

 Should be specific  Measurable  Have a Time line

What is an objective?

 An SBU with a high relative market share in a market that has stopped growing

What is a Cash Cow

2 - 8 Figure 2-2: Growth-Share Matrix

 I should Divest or Harvest

 What is when my SBU is a DOG?

 This is the riskiest of the generic growth strategies

What is diversification?

Figure 2-3: Product / Market Expansion Grid

 Dividing up a heterogeneous market into multiple user groups

What is segmenting? segmenting

 The group of consumers that you are trying to sell your products to

What is your target market?

 Creating the perception in the mind of the consumers that your product is the ideal product for them

What is product positioning?

 The variables that the marketer controls, sometimes known as the 4ps

What is the marketing mix?

 This element of the marketing mix deals with communication

What is promotion?

 Branding and Packaging issues are part of this element of the Marketing mix

What is Product?

 Distribution and logistics are part of this element of the marketing mix

What is Place?

Figure 2-6: Managing the Marketing Effort

 An advantage over competitors gained by offering consumers greater value than competitors offer

What is competitive advantage? competitiveadvantagecompetitiveadvantage  Would have accepted core competency

 The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.

What is competitive analysis

 Concentrating on competitors so much that you ignore other issues

What is competitor Myopia?

 Using other companies to establish industry standards

What is benchmarking?

 Those companies that compete in the same way in the same industry

What is a strategic group?  Good or bad competitors

 The generic strategy of Creating a highly differentiated product line and marketing program

What is differentiation

 Basic Winning Competitive Strategies: Porter Overall cost leadershipOverall cost leadership  Lowest production and distribution costs DifferentiationDifferentiation  Creating a highly differentiated product line and marketing program FocusFocus  Effort is focused on serving a few market segments Competitive Strategies

 The value discipline of superior value via price and convenience

What is operational excellence?  Basic Competitive Strategies: Value Disciplines Operational excellenceOperational excellence  Superior value via price and convenience Customer intimacyCustomer intimacyintimacy  Superior value by means of building strong relationships with buyers and satisfying needs Product leadershipProduct leadershipleadership  Superior value via product innovation

Figure 18-3: Hypothetical Market Structure

Product proliferation

What is a market leader strategy designed to protect market share?  Expanding the total demand Finding new usersFinding new users Discovering and promoting new product usesDiscovering and promoting new product uses Encouraging greater product usageEncouraging greater product usage  Protecting market share Many considerationsMany considerationsManyconsiderationsManyconsiderations Continuous innovationContinuous innovation  Expanding market share Profitability rises with market shareProfitability rises with market share

 Option 1: challenge the market leader High-risk but high-gainHigh-risk but high-gain Sustainable competitive advantage over the leader is key to successSustainable competitive advantage over the leader is key to success  Option 2: challenge firms of the same size, smaller size or challenge regional or local firms  Full frontal vs. indirect attacks

What are market challenger strategies?

 Content to not rock the boat and to rely on “me too” products

 Follow the market leader Focus is on improving profit instead of market shareFocus is on improving profit instead of market share Many advantages:Many advantages:  Learn from the market leader’s experience Learn  Copy or improve on the leader’s offerings  Strong profitability

 Wants to be the dullest story in America

Who is the Dial Corporation?

 Targets small lucrative markets

What is a market nicher?  Serving market niches means targeting subsegments nichesmeansnichesmeans  Good strategy for small firms with limited resources  Offers high margins  Specialization is key By market, customer, product, or marketing mix linesBy market, customer, product, or marketing mix lines

Game playing industry a. Nintendo Nintendo a.Wii hyperlink hyperlink b. Microsoft Microsoft a.Xbox 360 Xbox 360Xbox 360 c. Sony Sony a.Play Station Play StationPlay Station

18- 56

Threat of New Entry  the existence of barriers to entry barriers to entrybarriers to entry  economies of product differences  brand equity  switching costs  capital requirements  access to distribution  absolute cost advantages  learning curve advantages  expected retaliation  government policies

Competitive Rivalry  number of competitors  rate of industry growth  intermittent industry overcapacity  exit barriers  diversity of competitors  informational complexity and asymmetry  brand equity  fixed cost allocation per value added  level of advertising expense

Supplier Power Power  supplier switching costs relative to firm switching costs  degree of differentiation of inputs  presence of substitute inputs  supplier concentration to firm concentration ratio  threat of forward integration by suppliers relative to the threat of backward integration by firms  cost of inputs relative to selling price of the product

Buyer Power  buyer concentration to firm concentration ratio  bargaining leverage  buyer volume  buyer switching costs relative to firm switching costs  buyer information availability  ability to backward integrate  availability of existing substitute products  buyer price sensitivity  price of total purchase

Threat of Substitution ofSubstitutionofSubstitution  buyer propensity to substitute  relative price performance of substitutes  buyer switching costs  perceived level of product differentiation