Marketing 2200: Chapter 2
Relationship between businesses and developing a Competitive Advantage:
Marketing planning: implementing, planning activities devoted to achieving
marketing objectives establishes the basis for any marketing strategy.
This is how you decide on prices, product lines, selection of distribution channels,
and decisions relating to promotional campaigns.
Strategic Planning: is a process of determining an organizations primary
objectives and then adopting courses of action that will eventually achieve these
objectives.
Mission: essential purpose that differentiates the company from others
Porters 5 force model:
Potential new entrants: sometimes blocked by the cost or difficulty of entering a
market, and the Internet has reduced barriers for many marketing industries.
Bargaining power of buyers: Internet can increase buying power by providing
information that is not easily accessible, such as supplier alternatives and price
comparisons.
Number of available suppliers to manufacture or retailer affects their bargaining
power.
Threat of substitute products: if customers have the opportunity to replace a
company’s products with the goods or services from a competing firm or industry,
the company’s marketers may have to take steps to find a new market, change
prices, or compete in other ways to maintain an advantage.
Rivalry among competitors: issues such as cost and differentiation or lack of
differentiation of products along with the internet influence the strategies that
companies use to stand out from their competitors.
First mover strategy: attempting to capture the greatest market share and develop long
term relationships by being the first to enter the market with a product or service.
Second mover strategy: observing closely the innovations of first movers and then
improving on them to gain advantage in the marketplace.
Swot Analysis:
Helps planners compare internal organizational strengths and weaknesses with external
opportunities and threats. Strengths: core competencies what it does well. (Cost advantages, and customer
loyalty)
Weaknesses: (Too narrow a product line, Lack of management depth, Weak
market image)
Opportunities: (Add to product line, Enter new markets, and acquire firms with
needed technology)
Threats: (Changing buyer tastes, likely entry of new competitors, adverse
government policies)
Marketing Strategy:
An effective marketing strategy reaches the right buyers at the right time,
persuades them to try the product, and develops a strong relationship with them
over time. The basic elements of a marketing strategy consists of:
1) The target market
2) The marketing mix variables of products, distribution, promotion, and price that
combine to satisfy the needs of the target market.
The target market:
The group of people toward whom the firm decides to direct its marketing efforts
and ultimately its merchandise.
Examples: Sears Canada serves a target market consisting of consumers
purchasing for themselves and their families. Other companies such as
Bombardier, market most of their products to business buyers such as Air Canada.
Marketing mi variables:
The blending of four strategic elements to fit the needs and preferences of a
specific target market.
1) Product strategy: involves more than just deciding what goods or services the firm
should offer to a group of consumers. It also includes decisions about custom
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