Marketing Strategy Flashcards

A company discovers that two of its products are cannibalizing each other's sales. This situation is MOST likely a result of poor:

Answer: Product portfolio and positioning strategy

Cannibalization occurs when positioning and product line decisions are not sufficiently differentiated.

Which metric measures the total revenue a customer is expected to generate over the entire relationship with a company?

Answer: Customer Lifetime Value (CLV/LTV)

Customer Lifetime Value (CLV) estimates the total net profit attributed to the entire future relationship with a customer.

In Ansoff's Matrix, which growth strategy carries the HIGHEST risk?

Answer: Diversification

Diversification is the riskiest strategy because it involves entering new markets with entirely new products.

A retailer places its private-label product next to the national brand leader to compare favorably on quality but at a lower price. This is an example of:

Answer: Comparative competitive positioning

Comparative positioning explicitly references a competitor to establish the brand's relative benefits.

Which of the following is the CORRECT order of steps in developing a marketing strategy?

Answer: Segment → Target → Position

The STP process requires first segmenting the market, then selecting target segments, then positioning the offer.

A firm maintains profitability despite charging a premium price because customers perceive its offering as uniquely superior. This describes:

Answer: Differentiation competitive advantage

Differentiation advantage allows a firm to command premium prices because customers value its unique attributes.

When evaluating market segments, a marketer should consider all of the following criteria EXCEPT:

Answer: The personal preferences of the CEO

Personal executive preferences are not a valid criterion; segment evaluation must be based on objective strategic and commercial factors.