Marketing Strategy Flashcards

A brand with high brand equity benefits most directly from:

Answer: Greater pricing power, customer loyalty, and easier new product acceptance

Strong brand equity enables premium pricing, lowers customer churn, and creates a halo effect that eases acceptance of brand extensions.

In a competitive intelligence context, the term 'competitive benchmarking' refers to:

Answer: Systematically comparing a company's processes and metrics against best-in-class competitors

Competitive benchmarking identifies performance gaps by measuring the company against rivals or industry leaders on key operational and strategic metrics.

A company that reduces product line breadth to focus on fewer, stronger SKUs is executing a strategy of:

Answer: Portfolio pruning or rationalization

Portfolio rationalization eliminates underperforming or redundant SKUs to concentrate resources on products with the strongest margins and market positions.

Which element of a SWOT analysis represents external factors the company cannot control but can exploit?

Answer: Opportunities

Opportunities are favorable external conditions—market trends, regulatory changes, or competitor weaknesses—that the firm can leverage to its advantage.

A company using a 'focus' generic strategy (Porter) differs from broad differentiators primarily because it:

Answer: Targets a narrow customer segment or niche rather than the broad market

A focus strategy tailors competitive advantages—cost or differentiation—to the specific needs of a well-defined, narrow segment rather than the whole market.

Net Promoter Score (NPS) is strategically relevant to marketers because it:

Answer: Correlates customer advocacy levels with organic growth potential and customer retention

NPS measures the likelihood of customers to recommend the brand, which research links to word-of-mouth growth, retention, and overall business performance.

When a company shifts from a product-centric to a customer-centric marketing strategy, the most fundamental change is:

Answer: Organizing strategy around customer needs, relationships, and lifetime value rather than product attributes

Customer-centricity reorients the entire organization to understand and serve customer needs profitably, measuring success through customer metrics like CLV and satisfaction rather than product metrics.