Grewal - Marketing - 4e, solutions manual and test bank 0078029007
Developing Marketing Strategies and a Marketing Plan
TOOLS FOR INSTRUCTORS
· Brief Chapter Outline
· Learning Objectives
· Chapter Overview (“Summing Up”)
· Extended Chapter Outline with Teaching Tips
o Topics, key terms, and boxed inserts referenced to PPT slide
· PowerPoint Slides with Teaching Notes
· Answers to End of Chapter Learning Aids
· Chapter Case Study
· Additional Teaching Tips
BRIEF CHAPTER OUTLINE
What is a Marketing Strategy?
The Marketing Plan
Growth Strategies
Summing Up
End of Chapter Learning Aids
Chapter Case Study: The Netflix Rollercoaster
LEARNING OBJECTIVES
LO1. Define a marketing strategy.
LO2. Describe the elements of a marketing plan.
LO3. Analyze a marketing situation using SWOT analyses.
LO4. Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
LO5. Outline the implementation of the marketing mix as a means to increase customer value.
LO6. Summarize portfolio analysis and its use to evaluate marketing performance.
LO7. Describe how firms grow their business
CHAPTER OVERVIEW (“SUMMING UP”)
Define a marketing strategy.
A marketing strategy identifies (1) a firm’s target markets(s), (2) a related marketing mix—the four Ps—and (3) the bases upon which the firm plans to build a sustainable competitive advantage. Firms use four macrostrategies to build their sustainable competitive advantage. Customer excellence focuses on retaining loyal customers and excellent customer service. Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Product excellence entails having products with high perceived value and effective branding and positioning. Finally, locational excellence entails having a good physical location and Internet presence.
Describe the elements of a marketing plan.
A marketing plan is composed of an analysis of the current marketing situation, its objectives, the firm’s strategy for the four Ps, an analysis of opportunities and threats, and appropriate financial statements. A marketing plan represents the output of a three-phase process: planning, implementation, and control. The planning phase requires that managers define the firm’s mission and vision and assess the firm’s current situation. It helps answer the questions, “What business are we in now, and what do we intend to be in the future?” In the second phase, implementation, the firm specifies, in more operational terms, how it plans to implement its mission and vision. Specifically, to which customer groups does it wish to direct its marketing efforts, and how does it use its marketing mix to provide good value? Finally, in the control phase, the firm must evaluate its performance using appropriate metrics to determine what worked, what didn’t, and how performance can be improved in the future.
Analyze a marketing situation using SWOT analysis.
Recall that SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs during the second step in the strategic planning process, the situation analysis. By analyzing what the firm is good at (its strengths), where it could improve (its weaknesses), where in the marketplace it might excel (its opportunities), and what is happening in the marketplace that could harm the firm (its threats), managers can assess their firm’s situation accurately and plan its strategy accordingly.
Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
Once a firm identifies different marketing opportunities, it must determine which opportunities are the best to pursue. To accomplish this task, marketers go through a segmentation, targeting, and positioning (STP) process. Firms segment various markets by dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially
toward them. After identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm’s perceived ability to satisfy the needs of those groups better than competitors and profitably. To complete the STP process, firms position their products or services according to the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product or service does or represents relative to competing products or services.
Outline the implementation of the marketing mix as a means to increase customer value.
The marketing mix consists of the four Ps - product, price, promotion, and place - and
each P contributes to customer value. To provide value, the firm must offer a mix of products and services at prices their target markets will view as indicating good value. Thus, firms make trade-offs between the first two Ps, product and price, to give customers the best value. The third P, promotion, informs customers and helps them form a positive image about the firm and its products and services. The last P, place, adds value by getting the appropriate products and services to customers when they want them and in the quantities they need.
Summarize portfolio analysis and its use to evaluate marketing performance.
Portfolio analysis is a management tool used to evaluate the firm’s various products and businesses—its “portfolio”—and allocates resources according to which products are expected to be the most profitable for the firm in the future. A popular portfolio analysis tool, developed by the Boston Consulting Group classifies all products into four categories. The first, stars, are in high growth markets and have high market shares. The second, cash cows, are in low-growth markets, but have high market share. These products generate excess resources that can be spun off to products that need it. The third category, question marks, is in high-growth markets, but has relatively low market shares. These products often utilize the excess resources generated by the cash cows. The final category, dogs, are in low-growth markets and have relatively low market shares. These products are often phased out.
Describe how firms grow their business.
Firms use four basic growth strategies: market penetration, market development, product development, and diversification. A market penetration strategy directs the firm’s efforts toward existing customers and uses the present marketing mix. In other words, it attempts to get current customers to buy more. In a market development strategy, the firm uses its current marketing mix to appeal to new market segments, as might occur in international expansion. A product development growth strategy involves offering a new product or service to the firm’s current target market. Finally, a diversification strategy takes place when a firm introduces a new product or service to a new customer segment. Sometimes a diversification strategy relates to the firm’s current business, such as when a women’s
clothing manufacturer starts making and selling men’s clothes, but a more risky strategy is when a firm diversifies into a completely unrelated business.
EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS
I. WHAT IS A MARKETING STRATEGY?
A. A marketing strategy identifies (1) a firm’s target market(s), (2) a related marketing mix—their four Ps—and (3) the bases upon which the firm plans to build a sustainable competitive advantage.
B. Sustainable competitive advantage (PPT slide 2-4)
C. Customer excellence (PPT slide 2-5)
1. Retaining Loyal Customers
2. Customer Service
D. Operational excellence (PPT slide 2-6)
1. Efficient Operation
2. Excellent Supply Chain Management and Strong Supplier Relations
3. Human Resource Management
E. Product Excellence (PPT slide 2-8)
F. Locational Excellence (PPT slide 2-9)
G. Multiple Sources of Advantage
Check Yourself: Several questions are offered for students to check their understanding of core concepts. (PPT slide 2-11)
¨ What are the various components of a marketing strategy?
Answer: A marketing strategy includes a firm’s target market(s), a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage.
¨ List the four macro strategies that can help a firm develop a sustainable competitive advantage.
Answer: The four microstrategies that can help a firm develop a sustainable competitive advantage include customer excellence, operational excellence, product excellence, and locational excellence.
II. THE MARKETING PLAN (PPT slide 2-12)
A. Step 1: Define the business mission. (PPT slide 2-14)
1. Mission statement
B. Step 2. Conduct a situation analysis using SWOT. (PPT slide 2-16)
C. Step 3: Identify and evaluate opportunities using STP (segmentation, targeting, and positioning). (PPT slide 2-17, 18)
1. Segmentation
2. Targeting
3. Positioning
D. Step 4: Implement the marketing mix and allocate resources. (PPT slide 2-20)
1. Product and Value Creation (PPT slide 2-21)
2. Price and Value Capture (PPT slide 2-22)
3. Place and Value Delivery ((PPT slide 2-23)
4. Promotion and Value Communication (PPT slide 2-24)
E. Step 5: Evaluate performance using marketing metrics. (PPT slide 2-25)
1. Who is Accountable for Performance?
2. Performance Objectives and Metrics
3. Financial Performance Metrics
4. Portfolio Analysis
F. Strategic planning is not sequential.
Check Yourself: Several questions are offered for students to check their understanding of core concepts. (PPT slide 2-27)
¨ What are the five steps in creating a marketing plan?
Answer: The five steps in creating a marketing plan are defining a business mission and objectives, evaluating a situation analysis, identifying opportunities, implementing a marketing mix, and evaluating performance using marketing matrix.
¨ What tool helps a marketer conduct a situation analysis?
Answer: A SWOT analysis helps a marketer conduct a situation analysis.
¨ What is STP?
Answer: STP is Segmentation, Targeting, and Positioning.
¨ What do the four quadrants of the portfolio analysis represent??
Answer: Stars, Cash Cows, Question Marks, Dogs.
III. GROWTH STRATEGIES (PPT slide 2-28)
A. Market penetration (PPT slide 2-29)
B. Market development and the case for global expansion (PPT slide 2-30)
C. Product Development (PPT slide 2-31)
D. Diversification (PPT slide 2-33)
Check Yourself: Several questions are offered for students to check their understanding of core concepts. (PPT slide 2-34)
¨ What are the four growth strategies?
Answer: They are market penetration strategy, market development strategy, product development strategy, and diversification strategy.
¨ What type of strategy is growing the business from existing customers?
Answer: The type of strategy that grows a business from existing customers is market penetration strategy.
¨ Which strategy is the riskiest?
Answer: The diversification strategy is the riskiest, because unrelated diversifications do not capitalize on either core strengths associated with markets or with products.
POWERPOINT SLIDES WITH TEACHING NOTES
| Power Point Slide | Teaching Notes |
| 2-1: Developing Marketing Strategies and a Marketing Plan | |
| 2-2: Learning Objectives | These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides. |
| 2-3: Nike | Students will most likely be familiar with Nike products. Ask Students to comment on any commercials they can recall and the company itself. Students will start to mention many topics in the chapter including target markets, marketing mix and sustainable competitive advantage. |
ch2 Key
| 1. | Strong supplier relations and efficient supply chains help firms such as Walmart to achieve operational excellence. Efficiency in the supply chain is one of the primary features of an operational excellence strategy. |
| AACSB: Analytic |
| 2. | To build a sustainable competitive advantage, companies should focus on a single strategy. While a firm may put primLevel: Easyary energy into one strategy in order to achieve excellence, many firms seek multiple sources of advantage in order to meet customers needs to the greatest possible extent. |
| AACSB: Analytic |
| 3. | It is not always necessary to go through all the steps in the marketing planning process. Revisions to existing plans often do not require going through all steps in the process. |
| AACSB: Analytic |
| 4. | A mission statement describes the specific actions a firm will take to achieve its goals. A mission statement is a broad description of a firm's objectives and the scope of activities it plans to undertake. |
| AACSB: Analytic |
| 5. | iTunes software is often credited for the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage. iTunes made the iPod so easy to use that it was difficult for other MP3 players to compete, even at lower prices. Over time, some competitors have created similar tools, but it has been difficult enough to copy that these competitors have never really caught up. |
| AACSB: Analytic |
| 6. | STP refers to segmentation, testing, and promotion. STP stands for "segmentation, targeting, and positioning." |
| AACSB: Analytic |
| 7. | The components of a SWOT analysis are Strengths, Weaknesses, Opportunities and Tactics. The components of a SWOT analysis are Strengths, Weaknesses, Opportunities, and Threats. |
| AACSB: Analytic |
| 8. | Firms are typically more successful when they focus on opportunities that build on their competitors' strengths. Firms are typically more successful when they focus on opportunities that build on their own strengths relative to the competition. |
| AACSB: Analytic |
| 9. | Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a Weakness. A recession is an external factor with possible negative results, so it is a Threat. |
| AACSB: Analytic |
| 10. | Price should be based on the value that the customer perceives. Value-based pricing helps to ensure that customers perceive a product as a good value. |
| AACSB: Analytic |
| 11. | Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit. A strategic business unit is a division of the firm that can be managed and operated somewhat independently from other divisions. |
| AACSB: Analytic |
| 12. | The marketing planning process always proceeds sequentially through the five steps. Planning processes can move back and forth between the steps as needed. |
| AACSB: Analytic |
| 13. | Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy. This is a product development strategy. A market development strategy offers existing products and services to new customers. |
| AACSB: Analytic |
| 14. | Sandisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In BCG portfolio analysis, the Sansa would be considered a dog. The Sansa has low relative market share in a low-growth market, which is the definition of a dog. |
| AACSB: Analytic |
| 15. | The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase. It is part of the Implementation phase, along with STP analysis. |
| AACSB: Analytic |
| 16. | Relative market share is an example of a marketing metric. Relative market share might be used as a metric to evaluate a firm's performance compared to its competitors. |
| AACSB: Analytic |
| 17. | Product penetration is one of the four major growth strategies. The four major growth strategies are Market Penetration, Product Development, Market Development, and Diversification. |
| AACSB: Analytic |
| 18. | Firms decide how to allocate resources to their various products and services during the STP step of the marketing planning process. Resource allocation takes place during Step 4, in which the marketing mix is implemented and resources are allocated. |
| AACSB: Analytic |
| 19. | If a firm wants to develop a sustainable competitive advantage, it should:
A sustainable competitive advantage comes from doing things that add value and that are not easily imitated by competitors. The other options do not achieve this objective. |
| AACSB: Analytic |
| 20. | Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?
The four overarching strategies are locational excellence, customer excellence, operational excellence, and product excellence. |
| AACSB: Analytic |
| 21. | When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her ten-hour plane trip. The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of:
The Ritz-Carlton clerk went to extra trouble to offer excellent customer service, which is one way to pursue a customer excellence strategy. |
| AACSB: Analytic |
| 22. | Taking steps to encourage customer loyalty is one way to:
A customer excellence macro strategy, which is one way to pursue a sustainable competitive advantage, depends in part on encouraging customer loyalty. |
| AACSB: Analytic |
| 23. | Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize:
By spending money now in the hope of receiving revenues later, banks are recognizing that the lifetime value of a customer relationship must be considered when choosing target markets. This does not mean that costs don't matter at all, but it means that a relationship that is initially unprofitable may become profitable as it continues. |
| AACSB: Analytic |
| 24. | Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in:
This is a good example of a potential sustainable competitive advantage based on customer service (i.e., a customer excellence strategy). |
| AACSB: Analytic |
| 25. | Firms achieve ___________ through efficient procedures and excellent supply chain management.
An operational excellence strategy depends on efficiency throughout the supply chain in order to keep costs low. |
No comments:
Post a Comment