Chapter 2

Question 1

The money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings

Answer 1

Profit

Question 2

A legal entity that consists of people who share a common mission, and are collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired future outcomes

Answer 2

Organization

Question 3

An organizations long-term course of action designed to deliver a unique customer experience while achieving its goals. It is a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals

Answer 3

Strategy

Question 4

This organizational level is where top management directs overall strategy for the entire organization and usually means the board of directors and senior management officers with a variety of skills and experiences that are invaluable in establishing the organization’s overall strategy

Answer 4

Corporate Level

Question 5

This organizational level managers set a more specific strategic direction for their businesses to exploit value-creating opportunities.

Answer 5

Business Unit

Question 6

This organizational level groups of specialists actually create value for the organization. The organization’s strategic direction becomes its most specific and focused.

Answer 6

Functional Level

Question 7

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry including the firm itself

Answer 7

Market Share

Question 8

A road map for the marketing actions of an organization for a specified future time period, such as one year or five years

Answer 8

Marketing Plan

Question 9

Statements of an accomplishment of a task to be achieved, often by a specific time

Answer 9

Goals or objectives

Question 10

Increased sales with current products in current markets

Answer 10

Market penetration

Question 11

Increased sales of a current product in a new market

Answer 11

Market Development ( Oreos in a blizzard)

Question 12

Increased sales with new or improved products in current markets

Answer 12

Product Development (M & M pretzels)

Question 13

Increase sales by expanding a company’s business into a new industry

Answer 13

Diversification

Question 14

An organization allocates its marketing mix resources to reach its target markets

Answer 14

Strategic marketing process

Question 15

An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external opportunities and Threats

Answer 15

SWOT analysis

Question 16

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it

Answer 16

Situation Analysis

Question 17

What are the three phases of strategic marketing process

Answer 17

Planning, implementation and evaluation/control

Question 18

Involves aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action

Answer 18

Market Segmentation

Question 19

Those characteristics of a product that make it superior to competitive substitutes

Answer 19

Points of difference

Question 20

To implement a marketing program successfully hundreds of detailed decisions are often required to develop the actions that comprise a marketing program for offering and these actions are called?

Answer 20

Marketing Tactics

Question 21

The means by which a marketing goal is to be achieved usually characterized by a specified target market and a marketing program to reach it.

Answer 21

Marketing strategy

Question 22

Market Share Equation

Answer 22

Brand Sales/ Total Market Sales

Question 23

A unique strength relative to competitors, the ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively

Answer 23

Competitive Advantage

Question 24

Four Building Blocks of Competitive Advantage?

Answer 24

Superior Quality, Superior Efficiency, superior innovation, and superior responsiveness to customers

Question 25

SBU’s that generate large amounts of cash, far more than they can use

Answer 25

Cash cows

Question 26

SBU’s with a high share of high growth markets that may need extra cash to finance their own rapid future growth

Answer 26

Stars

Question 27

SBU’s with a low share of high-growth markets

Answer 27

Question markets

Question 28

SBU’s with a low share of slow-growth markets

Answer 28

Dogs

Question 29

Technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units as though they were a collection of separate investments. The purpose of this tool is determine which SBU or offering generates cash and which one requires cash to fund the organization’s growth opportunities

Answer 29

Business Portfolio Analysis

Question 30

The difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place

Answer 30

Planning gap