Chapter 2

Question 1

What is an organization?

Answer 1

-It is a legal entity of people who share a common mission

Question 2

What is a business firm?

Answer 2

-It is a privately owned organization that serves its customers in order to earn a profit

Question 3

Profit

Answer 3

-it is the money left after a business firm’s total expenses are subtracted from its total revenue and is the reward for the risk it undertakes in marketing its offerings

Question 4

Non-profit organization

Answer 4

-it is a non governmental organization that serves its customers but does not have profit as an organizational goal

Question 5

Strategy

Answer 5

-It is an organization’s long term course of action designed to deliver a unique customer experience while achieving its goals

Question 6

What are the three organizational levels or strategies:

Answer 6

1. Corporate level
2. Business-Unit level
3. Functional Level

Question 7

What are cross functional Teams

Answer 7

-They are people from different departments working towards a goal

Question 8

Industries

Answer 8

-Groups of organizations that develop similar offerings

Question 9

Organizations set SMART goals

Answer 9

-Specific,
measurable
attainable
relevant
time based

Question 10

SWOT Analysis

Answer 10

• Strengths I
• Weakness I
• Opportunities E
• Threats external

Question 11

What are the 5 steps in developing Successful marketing strategies

Answer 11

1. SWOT analysis
2. Marketing product and goal setting focus
3. Marketing Program
4. Implementation Phase
5. Evaluation phase

Question 12

Marketing product and goal setting focus

Answer 12

• Identify target markets
• Market segmentation
• Goal setting

Question 13

Marketing program

Answer 13

-Decide how to market the product

Question 14

Implementation phase

Answer 14

• Obtaining resources
• Designing the marketing organization
• Developing schedule and deadlines
• Executing the marketing program

Question 15

Evaluation phase

Answer 15

• Compare results with expectations

- Exploit the positives and adjust what needs to be adjusted

Question 16

Corporate level

Answer 16

• Is where the top management directs overall strategy for the entire organization
• Boards of directors and senior managment officers

Question 17

Marketing accountability

Answer 17

the responsibility for the systematic management of marketing resources and processes to achieve measurable gains in return on marketing investment and increased marketing efficiency, while maintaining quality and increasing the value of the corporation.

Question 18

CROSS FUNCTIONAL TEAMS

Answer 18

a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.

Question 19

Core values

Answer 19

an organization’s core values are the fundamental, passionate, and enduring principles that guide its conduct over time.

Question 20

Mission

Answer 20

A statement of the organization’s function in society, often identifying its customers, markets, products, and technologies.

Question 21

Organizational culture

Answer 21

A set of values, ideas, attitudes, and norms of behaviour that is learned and shared among the members of an organization.

Question 22

Functional level

Answer 22

-The level in an organization where groups of specialists actually create value for the organization.

Question 23

Strategic business unit

Answer 23

-a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.

Question 24

Strategic business unit level

Answer 24

a business unit level where managers set a more specific strategic direction for their businesses to exploit value creating opportunities.

Question 25

SMART

Answer 25

Criteria for writing effective goals (S.M.A.R.T): Specific: Be a precise description of what is to be achieved. Measurable: Be a quantitative value to show attainment. Attainable: Be achievable, but challenging. Relevant: Be pertinent to the organization’s mission. Time-based: Have a deadline for completion.

Question 26

Business and business model

Answer 26

Business: the clear, broad, underlying industry or market sector of an organization’s offering. Business model: the strategies an organization develops to provide value to the customers it serves. Goals or objectives: statements of an accomplishment of a task to be achieved, often by a specific time.

Question 27

Business firms pursue several different types of goals

Answer 27

- Profit - Sales - Market share - Quality - Customer Satisfaction - Employee welfare - Social responsibility - Quality - Customers - Competitors

Question 28

Profit and sales

Answer 28

Profit: Most firms seek to maximize long-run profit. Sales: if profits are acceptable, a firm may elect to maintain or increase its sales level.

Question 29

Market share

Answer 29

a firm may choose to maintain or increase its market share. Market Share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Question 30

Quality and Customer Satisfaction

Answer 30

Quality: a firm may target the highest quality products or services in its industry. Customer Satisfaction: customers are the reason the organization exists, so their satisfaction is of vital importance.

Question 31

Employee welfare

Answer 31

a firm may recognize the critical importance of its employees by having an explicit goal stating its commitment to provide good employment opportunities and working conditions.

Question 32

Social responsibility

Answer 32

a firm may seek to balance the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits.

Question 33

Variation by level and by offering

Answer 33

Variation by level: creating increasingly specific, detailed strategies and plans. Variation by offering: strategy will be far different when marketing a physical product, a service, and idea and/or an experience.

Question 34

Competencies and competitive advantage

Answer 34

Competencies: an organization’s special capabilities, including skills, technologies, and resources, that distinguish it from other organizations and provide value to its customers. Competitive advantage: A unique strength relative to competitors, often based on quality, time, cost, innovation, customer intimacy, or customer experience management.

Question 35

Customers and Competitors

Answer 35

Customers: knowing in detail who customers and prospective customers are and the type of products and services (value) they are seeking for. knowing where, how and in what form they want this value delivered. Competitors: assess who competitors are and how they are behaving to respond with competitive strategies, including how they differentiate themselves from such competitors.

Question 36

Business Portfolio Analysis

Answer 36

uses quantified performance measures and growth targets to analyze a firm’s business units (called strategic business units SBUs) as though they were a collection of separate investments

Question 37

Benchmarking

Answer 37

discovering how others do something better than your own firm so that you can imitate or leapfrog competition.

Question 38

Four types of SBU's

Answer 38

Cash cows: low-growth, high-share business, require less investment to maintain market share, generate large amounts of cash. Stars: high-growth, high-share business, require heavy investment to finance rapid growth (may eventually become a cash cow when growth slows) Question marks: high-growth, low-share business, require major investment to hold a share and even more to increase share, decisions must be made about what to make into stars and what to cut. Dogs: low-growth, low-share business, may generate enough cash to maintain themselves but don’t hold promise to become real winners for the organization.

Question 39

Forecasts

Answer 39

Sales forecast: the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. Direct forecast: estimating the value to be forecast without any intervening steps. Lost-horse forecast: making a forecast using the last known value and modifying it according to positive or negative factors expected in the future. Survey of buyer’s intentions forecast: asking prospective customers if they are likely to buy a product during some future time period. Salesforce survey forecast: asking the firm’s salespeople to estimate sales during a coming period. Can be impacted based on salespersons enthusiasm and sales quota

Question 40

Trend extrapolation

Answer 40

Trend extrapolation: extending a pattern observed in past data in the future. Linear trend extrapolation: the pattern is described with a straight line.

Question 41

Market product and market potential

Answer 41

Market-Product: A company’s product or brand is with respect to these attributes If necessary, reposition. Market potential: the maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms.