Chapter 2 Study Guide

Question 1

What is the difference between a for-profit and a nonprofit organization?

Answer 1

For-profit: privately owned organization that service customers for a profit that allows the organization to survive.

Nonprofit: a nongovernmental organization that serves its customers. but does not have profit as an organizational goal.

Question 2

What are examples of a functional level in an organization?

Answer 2

Marketing Department
Finance Department
HR Department

Question 3

What is the meaning of an organization’s mission?

Answer 3

a statement of the function, identifying who its customers are, what it will produce, and what technology it will use.

Question 4

What is the difference between an organization’s business and its goals?

Answer 4

Business refers to the industry
Goals are statements of what is to be achieved

Question 5

What is the difference between a marketing dashboard and a marketing metric?

Answer 5

Marketing dashboard: a visual display of the essential information related to achieving a marketing objective.

Marketing metric: a measure of qualitative value or tend of marketing actions or results

Question 6

Explain the 4 market product strategies in diversification analysis.

Answer 6

1. Market penetration - used to increase sales of current products in current markets
2. Market development - used to sell products to new markets
3. Product development - strategy of selling new products to current markets
4. Diversification - strategy of developing new products and selling them to new markets

Question 7

What are the 3 steps of the planning phase of the strategic marketing process?

Answer 7

1. Conduct a SWOT analysis
2. Develop a market-product focus, customer value proposition, and goals
3. Design a marketing program.

Question 8

What is a customer value proposition?

Answer 8

a cluster of benefits that an organization promises customers/segments to satisfy their needs.

Question 9

What is the implementation phase of the strategic marketing process?

Answer 9

Executing the strategic marketing process consists of
1. obtaining resources
2. designing the marketing organization
3. defining precise tasks, responsibilities, and deadlines
4. executing the marketing program designed in the planning phase

Question 10

How do the goals set for a marketing program in the planning phase relate to the evaluation phase of the strategic marketing process?

Answer 10

Ensure that we are achieving the desired outcomes we set out to achieve, to identify deviations from the written marketing plans and then exploit positive ones or correct negative ones

Question 11

Profit

Answer 11

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.

Question 12

Strategy

Answer 12

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

Question 13

Core Values

Answer 13

the fundamental, passionate, and enduring principles of an organization that guide it conduct over time.

Question 14

Mission

Answer 14

a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies.

Question 15

Organizational culture

Answer 15

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

Question 16

Business

Answer 16

describes the clear, broad, underlying industry or market sector of an organization’s offering.

Question 17

Goals/objectives

Answer 17

the statements of an accomplishments of a task to be achieved, often by a specific time.

Question 18

Market share

Answer 18

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

Question 19

Marketing plan

Answer 19

the road map for the marketing actions of an organization for a specified future time period.

Question 20

Business plan

Answer 20

a road map for the entire organization for a specified future period of time.

Question 21

Marketing dashboard

Answer 21

the visual computer display of the essential information related to achieving a marketing objective

Question 22

Marketing metric

Answer 22

a measure of the quantitative value or trend of a marketing action or result

Question 23

Business Portfolio Analysis

Answer 23

a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.

Question 24

Diversification Analysis

Answer 24

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 25

Strategic marketing process

Answer 25

an approach whereby an organization allocates its marketing mix resources to reach its target markets.

Question 26

Situation analysis

Answer 26

involves taking stock of where a firm/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.

Question 27

SWOT analysis

Answer 27

an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats

Question 28

Market Segmentation

Answer 28

involves aggregating prospective buyers into groups or segments that 1. have common needs 2. will respond similarly to a marketing action

Question 29

Points of Difference

Answer 29

those characteristics of a product that make it superior or competitive substitutes

Question 30

Marketing Strategy

Answer 30

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.

Question 31

Marketing tactics

Answer 31

the detailed, day-to-day operational marketing actions for each element of the marketing mix that contributes to the overall success of marketing strategies.

Question 32

Step 2 in the planning phase of the strategic marketing process consists of

Answer 32

market-product focus and goal setting

Question 33

Core values refer to

Answer 33

the fundamental, passionate, and enduring principles that guide an organization's conduct over time.

Question 34

During Step 3 of the strategic marketing process, firms like Ben and Jerry's engage in all of the following marketing activities except: a. select target markets b. set marketing and product goals c. develop the marketing program d. find points of difference

Answer 34

c. develop the marketing program

Question 35

The American railroad industry faced a serious decline in the 20th century. What business did the rail executives think they were in? What business is a railroad company really in? Why is this difference important?

Answer 35

1. The Railroad business 2. The transportation business; people, goods, equipment, resources. 3. This difference is important because their initial analysis lost sight of their customers and what their offerings provided them. The error made it difficult for railroad companies to compete with other transportation companies

Question 36

Diversification refers to the marketing strategy of

Answer 36

selling new products to new markets.

Question 37

Define the functional level of an organization.

Answer 37

where groups of specialists focus on specific strategic direction to create value for the organization

Question 38

What are points of difference and why are they important?

Answer 38

POD: those characteristics of a product that make it superior to competitive substitutes Important factors in the success or failure of a new product.