Ch. 2

Question 1

Business portfolio analysis

Answer 1

a technique that manager 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 2

quadrants in its growth-share matrix base don the amount of cash they generate for or require from the organization.

Answer 2

Question marks, stars, cash cows, dogs

Question 3

question marks

Answer 3

are SBUs with a low share of high-growth markets. they require large injections of cash just to maintain their market share, much less increase it. The name implies management’s dilemma for these SBUs: choosing the right ones to invest in and phasing out the rest.

Question 4

stars

Answer 4

SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows.

Question 5

cash cows

Answer 5

SBUs that generate large amounts of cash, far more than they can use. they have dominant shares of slow-growth markets and provide cash to cover the organization’s overhead and to invest in other SBUs

Question 6

dogs

Answer 6

SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may no longer be or may not become real winners for the organization. dropping SBUs that are dogs may be required if they consume more cash than they generate, except when relationships with other SBUs, competitive considerations or potential strategic alliances exist.

Question 7

An organization’s SBUs often start as

Answer 7

questions marks and go clockwise around, to become starts then cash cows, and finally dogs. because an organization has limited influence on the market growth rate, its main objective is to try to change its relative dollar or unit market share.

Question 8

market development

Answer 8

a marketing strategy to sell current products to new markets.

Question 8

product development

Answer 8

marketing strategy of selling new products to current markets.

Question 8

Market penetration

Answer 8

marketing strategy to increase sales of current products in current markets, such as selling more Ben & Jerry’s chocolate chip cookie dough ice cream to us consumers. There is no change in either the basic product line or the markets served. increased sales are generated by selling either more ice cream (through better promotion or distribution) or the same amount of ice cream at a higher price to its current customers.

Question 8

diversification analysis

Answer 8

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

Question 8

diversification

Answer 8

marketing strategy of developing new products and selling them in new markets. This is potentially high-risk strategy.

Question 9

guiding principles of strategic marketing

Answer 9

guiding principles central to the concepts, techniques, and tools applied in strategic marketing process
customer are different
customers change
competitors change and react
organizational resources are limited

Question 9

strategic marketing process-planning phase

Answer 9

planning phase
step 1: Situation analysis
-assess the organization
-research customers
-analyze competition
-identify industry trends
step 2: market-product focus and goals
-selected a target market
-develop a customer value proposition
-determine product positing
-set market and product goals
step 3: Marketing program
-develop marketing mix
-set the budget
-make the financial projections

Question 10

strategic marketing process-implementation phase

Answer 10

-obtain resources
-design marketing organization
-develop schedules
-execute the marketing program

Question 11

strategic marketing process-evaluation phase

Answer 11

-compare results with goals to identify deviations
-correct negative deviations and exploit positive ones

Question 12

step 1 situation analysis

Answer 12

taking stock of where the firm or 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 13

strategic marketing process

Answer 13

involves the allocation of an organization’s marketing mix resources to reach its target markets and achieve a competitive advantage. the process is guided by underlying principles and is divided into three phases: planning, implementation, and evaluation

Question 14

swot analysis

Answer 14

identify the critical factors that impact the firm and then
-build on strengths
-correct weaknesses
-exploit opportunities
-avoid threats

Question 15

swot analysis internal vs external
favorable vs unfavorable

Answer 15

Favorable: strengths and opportunities
unfavorable: weaknesses and threats
Internal: strengths and weaknesses
external: opportunities and threats

Question 16

the three steps in the planning phase of the strategic marketing process include

Answer 16

1. conduct a situation (SWOT analysis)
2. develop a market, product focus, customer value proposition, and goals
3. design the marketing program.

Question 17

SWOT analysis

Answer 17

an acronym describing an organization’s appraisal of its internal strengths and weaknesses and its external opportunities and threats.

Question 18

swot analysis is based on study of 4 areas that form the foundation upon which the firm builds is marketing program

Answer 18

-identify changes and trends in the organization’s industry
-analyze the organization’s current and potential competitors
-asses the organization itself, including available resources
-research the organizations present and prospective customers