chapter 2

Question 1

define strategic planning

Answer 1

developing a strategic fit between organizations goals/capabilities and its changing marketing opportunities.

Question 2

describe the company-wide strategic planning

Answer 2

• define mission
• setting goals and objectives
• design business portfolio
• planning other mkt startegies

Question 3

define mission statement

Answer 3

organizations purpose

Question 4

product vs market oriented business definition

Answer 4

P–> ´´we sell coffee´´
M–> we sell ´´the starbucks experience´´

Question 5

business vs marketing objectives

Answer 5

Business: increasing sales, improving profits
Marketing: increase market share, increase promotion.

Question 6

define business portfolio

Answer 6

collection of businesses +products making up a company

Question 7

define portfolio analysis

Answer 7

activity in strtegic planning where products and businesses are evaluated

Question 8

How to plan the business portfolio:

Answer 8

1. analyze current business portfolio+ find out which businesses should receive more, less or no investment.
2. shape future–> develop strategies and growth/downsizing.

Question 9

How to analyze the current business portfolio

Answer 9

1. identify strategic business units (SBU´S) makign up company
2. assessing SBUS attractiveness
3. decide how much support each SBU deserves

Question 10

strategic business units can be

Answer 10

1. single product
2. company division
3. product line within division

Question 11

The BCG growth-share matrix

Answer 11

1. stars: high growth, high share businesses/products
2. cash cows: low-growth, high-share businesses
3. question marks: high-growth, low share
4. dogs: low-growth, low-share

Question 12

problems with matrix approaches

Answer 12

• difficult to undertake
• time consuming
• costly
• may not apply well to certain markets with structural changes.

Question 13

the product/market expansion grid

Answer 13

• uses to identify growth opportunities
• developing new markets for existing products (market development)
• existing markets/existing products (market penetration)
• developing new product’s in existing markets (product development)
• new products and new markets (diversification)–> buying businesses outside market

Question 14

downsizing definition:

Answer 14

company must eliminate buisnesses that are unprofitable/no longer fit startegy

Question 15

define value chain

Answer 15

• each department has a value-creating activity to design, produce, market, deliver and support firms products.
• also partner with other company departments to have more sails+customer relationships

Question 16

define value delivery network

Answer 16

• suppliers, distributors, customers partnering with each other to improve performance of entire system.

Question 17

describe the marketing strategy and marketing mix

Answer 17

1. segmentation/targeting: ´´Which customers will we serve´´
2. differentiation/positioning: ´´how will we create value´´
3. marketing mix (the 4PS)– >intended value for customers
4. creating customer value +building profitable customer relationships

Question 18

define marketing strategy

Answer 18

• mkt logic focused to create customer value+achieve profitable customer relationships.

Question 19

define market segmentation:

Answer 19

dividing market into different groups of buyers with distinct needs, behaviour’s, characteristics

Question 20

define market segment

Answer 20

group of consumers respond similarly to marketing efforts

Question 21

define market targeting

Answer 21

• evaluating segments and choosing which segment to enter

Question 22

define positioning

Answer 22

• arranging for product to occupy a distinctive place relative to competing products in minds of target customers.
• distinguishing products from competing brands–> standing out

Question 23

define brand audit

Answer 23

• examination of a brands current position in market compared to competition
• strengths+weaknesses of brand/ opportunities for improvements

Question 23

explain differentiation

Answer 23

• differentiating company´s marketing offerings to create superior customer value compared to competition.

Question 24

define marketing mix

Answer 24

4PS price place product promotion

Question 25

define swot analysis

Answer 25

evaluates: 1. Strength's (internal capabilities) 2. weaknesses (internal limitations interfyung with objectives) 3. opportunities (external factors favoring company 4. threats (external factors challenging)

Question 25

how to manage the marketing effort

Answer 25

1. planning (develop strategic plans) 2. implementation and organisation: (carry out the plans) PLANS--> ACTIONS 3. control: measuring and evaluating results +taking corrective action if needed

Question 26

define marketing plan

Answer 26

documents helping reach long-term strategical goals by focusing in one year

Question 27

The parts in a marketing plan

Answer 27

1. executive summary 2. current marketing situation 3. SWOT 4. objectives and issues 5. marketing strategy 6. execution plans 7. budgets 8. controls

Question 28

arrangement of marketing departments

Answer 28

1. functional organisation 2. geographic organization 3. product management organization 4. market/customer organization.

Question 29

define marketing implementattion

Answer 29

- turning PLANS into ACTIONS

Question 30

four steps in marketing control

Answer 30

1. setting mkt goals 2. measuring performance in marketplace 3. evalauting current and expected performance 4. take corrective action if needed

Question 31

operating vs strategic control

Answer 31

operating--> checking ongoing performance against annual plan strategic---> looking if strategies are well matched to the opportunities

Question 32

define marketing ROI

Answer 32

- net return from marketing investment divided by cost of investment - measures profits made through investments