Ch2 Strategic Planning for Competitive Advantage

Question 1

in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

Answer 1

cash cow

Question 2

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Answer 2

competitive advantage

Question 3

provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

Answer 3

control

Question 4

being the low-cost competitor in an industry while maintaining satisfactory profit margins

Answer 4

cost competitive advantage

Question 5

a strategy of increasing sales by introducing new products into new markets

Answer 5

diversification

Question 6

in the portfolio matrix, a business unit that has low growth potential and a small market share

Answer 6

dog

Question 7

collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

Answer 7

environmental scanning

Question 8

gauging the extent to which the marketing objectives have been achieved during the specified time period

Answer 8

evaluation

Question 9

curves that show costs declining at a predictable rate as experience with a product increases

Answer 9

experience curves

Question 10

product, place, promotion, and price, which together make up the marketing mix

Answer 10

four Ps

Question 11

the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives

Answer 11

implementation

Question 12

a marketing strategy that entails attracting new customers to existing products

Answer 12

market development

Question 13

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

Answer 13

market opportunity analysis (MOA)

Question 14

a marketing strategy that tries to increase market share among existing customers

Answer 14

market penetration

Question 15

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization

Answer 15

marketing audit

Question 16

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

Answer 16

marketing mix

Question 17

defining a business in terms of goods and services rather than in terms of the benefits customers seek

Answer 17

marketing myopia

Question 18

a statement of what is to be accomplished through marketing activities

Answer 18

marketing objective

Question 19

a written document that acts as a guidebook of marketing activities for the marketing manager

Answer 19

marketing plan

Question 20

designing activities relating to marketing objectives and the changing marketing environment

Answer 20

marketing planning

Question 21

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Answer 21

marketing strategy

Question 22

a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

Answer 22

mission statement

Question 23

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

Answer 23

niche competitive advantage

Question 24

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

Answer 24

planning

Question 25

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

Answer 25

portfolio matrix

Question 26

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins

Answer 26

problem child (question mark)

Question 27

a marketing strategy that entails the creation of new products for present markets

Answer 27

product development

Question 28

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

Answer 28

product/service differentiation competitive advantage

Question 29

in the portfolio matrix, a business unit that is a fast-growing market leader

Answer 29

star

Question 30

a subgroup of a single business or collection of related businesses within the larger organization

Answer 30

strategic business unit (SBU)

Question 31

the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

Answer 31

strategic planning

Question 32

an advantage that cannot be copied by the competition

Answer 32

sustainable competitive advantage

Question 33

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Answer 33

SWOT analysis