Chapter 2

Question 1

Strategic Planning

Answer 1

The managerial process of creating and

maintaining a fit between the organization’s objectives and resources and evolving market opportunities

Question 2

What is the goal when using marketing strategies?

Answer 2

To create Long-term growth and profitability

Question 3

What are the three primary levels of market strategy?

Answer 3

1) Corp
2) Business Unit
3) Functional

Question 4

SBU (Strategic Business Unit)

Answer 4

A subgroup of single business or a collection of related business

Question 5

Do SBU’s have the same mission as their parent companies?

Answer 5

No they have a distinct mission, have control of resources, and has own competitors

Question 6

Annsoff’s Strategic Opportunity Matrix

Answer 6

the concept of matching products with markets

Question 7

Market Penetration (Ansoff’s)

Answer 7

Attempting to INCREASE market share in EXISTING costumer base using the same product

Question 8

Market Development (Ansoff’s)

Answer 8

Bringing an EXISTING product into a NEW market

Question 9

Product Development

Answer 9

Bringing a NEW product into the SAME market

Question 10

Diversification

Answer 10

Bringing a NEW product into a NEW market

Question 11

BCG Portfolio Matrix

Answer 11

A matrix used to determine the status of a company

Question 12

Stars (BCG MATRIX)

Answer 12

Companies with high market growth rate and high relative market share. They usually have high profits, lots of competition, and require heavy investments

Question 13

Cash Cows (BCG Matrix)

Answer 13

Companies with low market growth rate but high relative market share. Usually have no competition, don’t need investments, and produce alot of cash

Question 14

Problem Child (BCG Matrix)

Answer 14

Companies with high market growth and low market share. Usually will build to stars or disappear. Require a lot of cash

Question 15

Dogs (BCG Matrix)

Answer 15

Low market growth and low market share. usually have low profits and will discontinue

Question 16

What are the 5 components of a mission statement?

Answer 16

1) Limited goals
2) values
3) Define competitive sphere
4) Long term goals
5) Short but meaningful/clear

Question 17

The Marketing Plan

Answer 17

A written document that acts as a guidebook

of marketing activities for organization

Question 18

4 Reasons to write a marketing plan?

Answer 18

Examines the marketing environment
Creates common awareness of marketplace factors
Establishes strategies and activities that work toward stated objectives
Basis for comparison of actual and expected performance

Question 19

What 4 things considered in marketing mix?

Answer 19

Product, Price, promotion, distribution

Question 20

Environmental Scanning

Answer 20

The 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 21

What does SWOT stand for and what is the purpose?

Answer 21

S-Internal Strengths
W-Internal Weaknesses
O- External opportunity 
T- External Threats 
** An analysis to understand current and potential environment in which the product or service is being marketed

Question 22

Competitive Advantage

Answer 22

The set of unique features of a company and

its products that are perceived by the target market as significant and superior to the competition.

Question 23

3 types of competitive advantage?

Answer 23

1) Cost
2) Product differentiation
3) niche

Question 24

Cost Competitive Advantage

Answer 24

Being the low-cost competitor in an industry

while maintaining satisfactory profit margins

Question 25

Product Differentiation

Answer 25

The provision of something that is superior and valuable to buyers beyond simply offering a lower price than the competition Ex: Brand

Question 26

Niche Competitive Advantage

Answer 26

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

Question 27

Sustainable Competitive advantage

Answer 27

Sustainable competitive advantage is an advantage that cannot be copied by the competition Ex: Patent

Question 28

Marketing Objectives

Answer 28

A statement of what is to be accomplished | through marketing activities

Question 29

4 components of marketing objectives

Answer 29

1) Realistic 2) Measurable 3) Time specific 4) Consistent with org

Question 30

5 purposes of marketing objectives?

Answer 30

1. Communicate marketing management philosophy 2. Provide management direction 3. Motivate employees 4. Force executives to clarify their thinking 5. Allow for better evaluation of results

Question 31

Marketing Strategy Development

Answer 31

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

Question 32

Marketing Opportunity Analysis

Answer 32

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

Question 33

The marketing mix

Answer 33

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

Question 34

What are the four P's?

Answer 34

Product, Place, Promotion, Price

Question 35

What three ways can you follow up on the marketing plan?

Answer 35

1) Implementation 2) Evaluation 3) Control

Question 36

3 requirements for effective strategic planning

Answer 36

1) Continual Attention 2) Creativity 3) Management Commitment