chapter 2

Question 1

cash cow

Answer 1

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

Question 2

competitive advantage

Answer 2

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Question 3

control strategy

Answer 3

provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

Question 4

cost competitive advantage

Answer 4

being the low-cost competitor in an industry while maintaining satisfactory profit margins cost competitive advantage being the low-cost competitor in an industry while maintaining satisfactory profit margins

Question 5

diversification

Answer 5

a strategy of increasing sales by introducing new products into new markets diversification a strategy of increasing sales by introducing new products into new markets

Question 6

dog

Answer 6

in the portfolio matrix, a business unit that has low growth potential and a small market share

Question 7

environmental scanning

Answer 7

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

Question 8

evaluation strategy

Answer 8

gauging the extent to which the marketing objectives have been achieved during the specified time period evaluation

Question 9

experience curves

Answer 9

curves that show costs declining at a predictable rate as experience with a product increases

Question 10

implementation

Answer 10

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives

Question 11

market development

Answer 11

a marketing strategy that entails attracting new customers to existing products market development a marketing strategy that entails attracting new customers to existing products

Question 12

market opportunity analysis [MOA] strategy

Answer 12

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

Question 13

market penetration

Answer 13

a marketing strategy that tries to increase market share among existing customers

Question 14

market audit strategy

Answer 14

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization marketing

Question 15

marketing mix [four P’s] strategy

Answer 15

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

Question 16

market myopia

Answer 16

defining a business in terms of goods and services rather than in terms of the benefits customers seek

Question 17

marketing objective

Answer 17

a statement of what is to be accomplished through marketing activities

Question 18

marketing plan

Answer 18

a written document that acts as a guidebook of marketing activities for the marketing manager marketing plan

Question 19

marketing planning

Answer 19

designing activities relating to marketing objectives and the changing marketing environment marketing planning designing activities relating to marketing objectives and the changing marketing environment

Question 20

marketing strategy

Answer 20

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Question 21

mission statement

Answer 21

a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

Question 22

niche competitive advantage

Answer 22

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

Question 23

planning

Answer 23

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

Question 24

portfolio matrix

Answer 24

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate portfolio matrix

Question 25

problem child [question mark]

Answer 25

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

Question 26

product development

Answer 26

a marketing strategy that entails the creation of new products for present markets product development

Question 27

product/ service \ differentiation competitive advantage

Answer 27

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition product/service differentiation competitive advantage the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

Question 28

star

Answer 28

in the portfolio matrix, a business unit that is a fast-growing market leader

Question 29

strategic business unit [SBU]

Answer 29

a subgroup of a single business or collection of related businesses within the larger organization

Question 30

strategic planning

Answer 30

the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

Question 31

sustainable competitive advantage

Answer 31

an advantage that cannot be copied by the competition

Question 32

SWOT analysis

Answer 32

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)