Chapter 2

Question 1

The activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Answer 1

Marketing

Question 2

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

Answer 2

Strategic Planning

Question 3

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

Answer 3

Strategic Business Unit (SBU)

Question 4

A marketing strategy that tries to increase market share among existing customers.

Answer 4

Market Penetration

Question 5

A marketing strategy that entails attracting new customers to existing products

Answer 5

Market Development

Question 6

A marketing strategy that entails the creation of new products for present markets

Answer 6

Product Development

Question 7

A strategy of increasing sales by introducing new products into new markets

Answer 7

Diversification

Question 8

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

Answer 8

Portfolio Matrix

Question 9

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

Answer 9

Star

Question 10

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

Answer 10

Cash Cow

Question 11

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

Answer 11

Problem Child (Question Mark)

Question 12

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

Answer 12

Dog

Question 13

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

Answer 13

Planning

Question 14

Designing activities relating to marketing objectives and the changing marketing environment

Answer 14

Marketing Planning

Question 15

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

Answer 15

Marketing Plan

Question 16

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

Answer 16

Mission Statement

Question 17

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

Answer 17

Marketing Myopia

Question 18

Identifying internal strengths and weaknesses and also examining external opportunities and threats

Answer 18

SWOT Analysis

Question 19

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

Answer 19

Environmental Scanning

Question 20

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

Answer 20

Competitive Advantage

Question 21

Being the low-cost competitor in an industry while maintaining satisfactory profit margins

Answer 21

Cost Competitive Advantage

Question 22

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

Answer 22

Experience Curves

Question 23

The provision of something that is unique and valuable to buyers beyond simply offering a lower price that that of the competition

Answer 23

Product/Service Differentiation Competitive Advantage

Question 24

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

Answer 24

Niche Competitive Advantage

Question 25

An advantage that cannot be copied by the competition

Answer 25

Sustainable Competitive Advantage

Question 26

A statement of what is to be accomplished through marketing activities

Answer 26

Marketing Objective

Question 27

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

Answer 27

Marketing Strategy

Question 28

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

Answer 28

Market Opportunity Analysis (MOA)

Question 29

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

Answer 29

Marketing Mix (Four P’s)

Question 30

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

Answer 30

Implementation

Question 31

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

Answer 31

Evaluation

Question 32

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

Answer 32

Control

Question 33

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

Answer 33

Marketing Audit