Ch.2

Question 1

the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities

Answer 1

strategic planning

Question 2

a fully functional unit of business that has its own vision and direction

Answer 2

strategic business unit

Question 3

How do an organization’s goals relate to its mission?

Answer 3

Measures how well the organization’s mission is being accomplished

Question 4

• Grow market share
• Increase awareness of offering/product by X%
• Increase household penetration by X%
• build customer loyalty
• improve return on marketing investment by 20% within 2 years

Answer 4

types of objectives

Question 5

1. Specific
2. Measurable
3. Achievable
4. Relevant
5. Time-bound

Answer 5

SMART objectives

Question 6

(total company units/$sales)/(total market units/$sales)

Answer 6

market share equation

Question 7

collection of businesses and products that make up the company

Answer 7

business portfolio

Question 8

marketing strategy (STP) and the marketing mix (4P’s)

Answer 8

marketing function

Question 9

seek to increase sales of existing products to existing markets

Answer 9

market penetration

Question 10

create growth by selling new products in existing markets

Answer 10

product development

Question 11

introduce existing products to new markets

Answer 11

market development

Question 12

emphasize both new products and new markets to achieve growth

Answer 12

diversification

Question 13

1. Segmentation
2. Targeting
3. Positioning
4. Planning

Answer 13

STP marketing model

Question 14

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Answer 14

market segmentation

Question 15

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

Answer 15

market segment

Question 16

evaluating each market segment’s attractiveness and selecting one of more segments to serve

Answer 16

market targeting

Question 17

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

Answer 17

positioning

Question 18

(return - investment cost)/(investment cost)

Answer 18

ROI

Question 19

The first step in strategic planning involves ______ the company’s mission

Answer 19

defining

Question 20

A company’s mission statement should be focused on ______

Answer 20

customers

Question 21

The major activity in strategic planning is the analyses of a business _____

Answer 21

portfolio

Question 22

Within the growth-share matrix, “cash cows” are _____ , _____ business or products

Answer 22

low-growth, high-share

Question 23

Each department can be thought of as a link in the company’s ____

Answer 23

value chain

Question 24

____ plays a key roles in the company’s strategic planning

Answer 24

Marketing

Question 25

_____ involves evaluating each market segments attractiveness and selecting one or more segments to enter

Answer 25

market targeting

Question 26

_____ refers to activities that communicate the merits of the product and persuade target customers to buy it

Answer 26

promotion

Question 27

In SWOT analysis, the favorable factors or trends in the external environment that the company may be able to exploit to its advantage are referred to as

Answer 27

opportunities

Question 28

The most common form of marketing organization is _______

Answer 28

functional organization