CH. 2

Question 1

What is Strategic Planning

Answer 1

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies

Question 2

What is a Mission Statement

Answer 2

A statement of the organization’s purpose - what it wants to accomplish in the larger environment

Question 3

What is a Business Portfolio

Answer 3

The collection of business and products that make up the company

Question 4

What is Portfolio Analysis

Answer 4

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

Question 5

What is Growth-Share Matrix

Answer 5

A portfolio method that evaluates a company’s strategic business units in terms of their market growth rate and relative market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs

Question 6

What is Market Penetration

Answer 6

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

Question 7

What is Market Development

Answer 7

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

Question 8

What is Product Development

Answer 8

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

Question 9

What is Diversification

Answer 9

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

Question 10

What is Downsizing

Answer 10

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

Question 11

What is Value Chain

Answer 11

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

Question 12

What is Value-Delivering Network

Answer 12

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.

Question 13

What is Marketing Strategy

Answer 13

The marketing logic by which the business unit hopes to achieve its marketing objectives

Question 14

What is Marketing Segmentation

Answer 14

Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes

Question 15

What is a Marketing Segment

Answer 15

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

Question 16

What is Marketing Targeting

Answer 16

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

Question 17

What is Market Positioning

Answer 17

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

Question 18

What is Marketing Mix

Answer 18

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.

Question 19

What is Marketing Implementation

Answer 19

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

Question 20

What is Marketing Control

Answer 20

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

Question 21

What is Marketing Audit

Answer 21

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

Question 22

What is Return on Marketing (or Marketing ROI)

Answer 22

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

Question 23

Steps in strategic planning

Answer 23

defining the company mission, setting objectives and goals, designing the business portfolio, planning marketing and other functional strategies

Question 24

What is Differentiation

Answer 24

Actually differentiating the market offering to create superior cusotmer value

Question 25

What are the 4 p’s

Answer 25

Product, Price, Place, Promotion

Question 26

What is the Product/Marketing Expansion Grid

Answer 26

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

Question 27

What is the SWOT analysis

Answer 27

An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T)