ch 2 terms

Question 1

strategy

Answer 1

plan for where we are -> where we want to be

Question 2

mission statement

Answer 2

concise and detailed goal for future within time period
focus on customer satisfaction and our strengths

Question 3

portfolio

Answer 3

all products and businesses under one parent company

Question 4

what does SBU stand for

Answer 4

strategic business units

Question 5

4 SBUs

Answer 5

star, question mark, cash cow, dog

Question 6

Star SBU

Answer 6

high growth, high market share needed to support rapid growth

Question 7

Cash Cow SBU

Answer 7

low growth, high market share
income redistributed into new endeavours

Question 8

question mark SBU

Answer 8

high growth, low market share
needs a lot of help to be a success

Question 9

dog SBU

Answer 9

low growth, low market share
should probably be closed because it’s cruising at the bottom

Question 10

“market share”

Answer 10

how much of market pie (ex. shoes) does company (ex. nike) take up?

Question 11

value chain

Answer 11

internal pieces that give value
business departments (management, finance)

Question 12

value delivery network

Answer 12

external value delivery partners
(banks, delivery services, suppliers)

Question 13

market segmentation

Answer 13

differentiate different demographics
age, values, income

Question 14

market targeting

Answer 14

choose most profitable segment

Question 15

marketing positioning/differentiation

Answer 15

make us stand out against competitors

Question 16

SWOT analysis

Answer 16

internal Strengths and Weaknesses
external Opportunities and Threats

Question 17

market penetration

Answer 17

satisfy existing market with existing products
(expand breakfast options at starbucks)

Question 18

market development

Answer 18

bring in new markets with existing products
(ad campaign for old people to use iphones)

Question 19

product development

Answer 19

existing markets with new products
(coffee bean bags sold from starbucks to take home)

Question 20

diversification

Answer 20

new market with new products
(beer company sells non-alcoholic drinks)

Question 21

SMART for mission statement

Answer 21

Specific
Measurable
Attainable
Relevant
Time-bound

Question 22

ROI

Answer 22

return on investment
was marketing endeavour worth it? did we make money?