Chapter 2

Question 1

A plan that includes the decisions that guide the entire organization.

Answer 1

business plan

Question 2

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.

Answer 2

marketing plan

Question 3

A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long term growth and survival.

Answer 3

strategic planning

Question 4

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

Answer 4

strategic business units (SBUs)

Question 5

A decision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an organization’s long-term strategic plan.

Answer 5

tactical (functional) planning

Question 6

A decision process that focuses on developing detailed plans for day-to-day activities that carry out organization’s tactical plans.

Answer 6

operational planning

Question 7

An approach to tactical planning in which managers work together in developing tactical plans for each functional area in the firm so that each plan considers the objectives of the other areas.

Answer 7

cross-functional planning

Question 8

A formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.

Answer 8

mission statement

Question 9

The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.

Answer 9

business portfolio

Question 10

A management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units.

Answer 10

portfolio analysis

Question 11

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

Answer 11

BCG growth-market share matrix

Question 12

An analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment.

Answer 12

SWOT analysis

Question 13

The controllable elements inside an organization including its people, its facilities, and how it does things that influence the operations of the organization.

Answer 13

internal environment

Question 14

The uncontrollable elements outside of an organization that may affect its performance either positively or negatively.

Answer 14

external environment

Question 15

The ability of a firm to outperform the competition, thereby providing customers with a benefit the competition can’t.

Answer 15

competitive advantage

Question 16

A superior capability of a firm in comparison to its direct competitors.

Answer 16

distinctive competency

Question 17

Properties of products that set them apart from competitors’ products by providing unique customer benefits.

Answer 17

differential benefit

Question 18

Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.

Answer 18

market penetration

Question 19

Growth strategies that introduce existing products to new markets.

Answer 19

market development

Question 20

Growth strategies that focus on selling new products in served markets.

Answer 20

product development

Question 21

Growth strategies that emphasize both new products and new markets.

Answer 21

diversification

Question 22

Decision about the best product design, its packaging, branding–even if it will offer a warranty.

Answer 22

Product Strategies

Question 23

Determines what specific price a firm charges for a product.

Answer 23

Pricing Strategies

Question 24

How marketers communicate product benefits and features to the target market.

Answer 24

Promotion Strategies

Question 25

Distribution or “place” strategy outlines how, when and where the firm will make the product available to targeted customers.

Answer 25

Distribution Strategies

Question 26

The first part of a marketing plan that provides a thorough description of the firm’s current situation including its internal and external environments. (Business Review).

Answer 26

situation analysis

Question 27

A statement of the total amount to be spent on marketing and the allocation of money for each activity under the marketer’s control.

Answer 27

marketing budget

Question 28

Measuring actual performance, comparing it to planned performance and making necessary changes in plans and implementation.

Answer 28

controlling the marketing plan

Question 29

An analysis of past industry or company sales data to determine patterns of change that may continue into the future.

Answer 29

trend analysis

Question 30

A comprehensive review of a firm’s marketing function.

Answer 30

marketing audit