2. Company and Marketing Strategy

Question 0

A statement of the organisation’s purpose—what it wants to accomplish in the larger environment

Answer 0

Mission statement

Question 1

The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing market opportunities

Answer 1

Strategic planning

Question 2

The collection of businesses and products that make up the company

Answer 2

Business portfolio

Question 3

The process by which management evaluates the products and businesses that make up the company

Answer 3

Portfolio analysis

Question 4

A portfolio-planning method that evaluates a company’s strategic business units (SBU) in terms of their market growth rate and relative market share.

Uses the Boston Consulting Group (BCG) approach

Answer 4

Growth-share matrix

Question 5

A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses

Answer 5

Strategic business unit (SBU)

Question 6

Describe the axes of the growth-share matrix

Answer 6

Market growth rate provides measure of market attractiveness

Relative market share serves as a measure of company strength in the market

Question 7

High growth, high share businesses and products

They often need heavy investment to finance their rapid growth

Eventually their growth will slow down and they will turn into cash cows

Answer 7

Stars

Question 8

Low-growth, high-share businesses or products

These established and successful SBUs need less investment to hold their market share.

Thus, they produce a lot of cash that the company uses to pay it’s bills and to support other SBUs that need investment

Answer 8

Cash cows

Question 9

Low-share business units in high-growth markets

They require a lot of cash to hold their share, let alone increase it

Management needs to think hard about which ones it should try to build into stars and which should be phased out

Answer 9

Question marks

Question 10

Low-growth, low-share businesses and products

They may generate enough cash to maintain themselves but do not promise to be large sources of cash

Answer 10

Dogs

Question 11

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification

Answer 11

Product/market expansion grid

Question 12

A strategy for company growth by increasing sales of current market segments without changing the product

Answer 12

Market penetration

Question 13

A strategy for company growth by identifying and developing new market segments for current company products

Answer 13

Market development

Question 14

A strategy for company growth by offering modified or new products to current market segments

Answer 14

Product development

Question 15

A strategy for company growth through starting up or acquiring businesses out side the company’s current products and markets

New products and new markets

Answer 15

Diversification

Question 16

Reducing the business portfolio by eliminating the products or business units that are not profitable or that no longer fit in the company’s overall strategy

Answer 16

Downsizing

Question 17

The series of departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products

Answer 17

Value chain

Question 18

The network made up of the company, suppliers, distributors and ultimately customers who ‘partner’ with each other to improve the performance of the entire system

Answer 18

Value delivery network

Question 19

The marketing logic by which the business unit hopes to achieve it’s marketing objectives

Answer 19

Marketing strategy

Question 20

Dividing a market into smaller group with distinct needs, characteristics or behaviours who might require separate products or marketing mixes

Answer 20

Market segmentation

Question 21

A group of consumers who respond in a similar way to a given set if marketing efforts

Answer 21

Market segment

Question 22

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Answer 22

Market targeting

Question 23

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

Answer 23

Positioning

Question 24

Actually differentiating the market to create superior customer value

Answer 24

Differentiation

Question 25

The set of controllable tactical marketing tools—product, price, place and promotion—that the firm blends to produce the response it wants in the target market

Answer 25

Marketing mix

Question 26

What are the 4Cs?

Answer 26

Customer satisfaction (Product)
Customer cost (Price)
Convenience (Place)
Communication (Promotion)

Question 27

An overall evaluation of the company’s strengths, weakness, opportunities and threats

Answer 27

SWOT analysis

Question 28

The process that turns marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Answer 28

Marketing implementation

Question 29

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Answer 29

Marketing control

Question 30

A comprehensive, systematic, independent and periodic examination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance

Answer 30

Marketing audit

Question 31

The net return from a marketing investment divided by the costs of the marketing investment

Answer 31

Return on marketing investment (or marketing ROI)