MKTG 2800 Chapter Notes - Chapter 22: Cost Leadership
5 Jul 2017
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Ch 22 pulling it all together: the strategic marketing process. Sales response function- relates the expense of the marketing effort to the marketing results obtained. Share points- percentage points of market share, the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. Input metrics- number of ideas or concepts in the new-product pipeline and r&d spending as a percentage of sales. Output metrics- revenue growth due to new products or services and customer satisfaction with new products or services. Cost leadership strategy- focuses on reducing expenses, and in turn, lowers product prices while targeting a broad array of market segments. Differentiation strategy- requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments. Cost focus strategy- controlling expenses, lowering product prices targeted at a narrow range of market segments.
