Chapter 2

Question 1

control phase

Answer 1

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

Question 2

customer excellence

Answer 2

Involves a focus on retaining loyal customers and excellent customer service.

Question 3

diversification strategy

Answer 3

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

Question 4

downsizing

Answer 4

Exiting markets, reducing product portfolios, or closing certain businesses or store or plant locations.

Question 5

implementation phase

Answer 5

Where marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning. They then develop and implement the marketing mix by using the four Ps.

Question 6

locational excellence

Answer 6

Involves a focus on a good physical location and Internet presence.

Question 7

market development strategy

Answer 7

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international or segments not currently served by the firm.

Question 8

market growth rate

Answer 8

The annual rate of growth of the specific market in which the product competes.

Question 9

market penetration strategy

Answer 9

A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.

Question 10

market positioning

Answer 10

Involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products.

Question 11

market segment

Answer 11

A group of consumers who respond similarly to a firms’s marketing efforts.

Question 12

market segmentation

Answer 12

The process of dividing the market into distinct groups of customers -where each individual group has similar needs, wants, or characteristics- who therefore might appreciate products or services geared especially for them in similar ways.

Question 13

market strategy

Answer 13

Identifies a firm’s target market(s), a related marketing mix -the four Ps, and the bases upon which the firm plans to build a sustainable competitive advantage.

Question 14

mission statement

Answer 14

A broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? And What does it need to do to accomplish its goals and objectives?

Question 15

operational excellence

Answer 15

Involves a focus on efficient operations and excellent supply chain management.

Question 16

planning phase

Answer 16

Where marketing executives and other top managers define the mission and objectives of the business, and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm’s potential for success.

Question 17

product development strategy

Answer 17

A growth strategy that offers a new product or service to a firm’s current target market.

Question 18

product excellence

Answer 18

Involves a focus on achieving high-quality products and effective branding and positioning.

Question 19

product line

Answer 19

A group of products that consumers may use together or perceive as similar in some way.

Question 20

relative market share

Answer 20

A measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales archieved by the largest firm in the industry.

Question 21

situation analysis (SWOT)

Answer 21

The second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats.

Question 22

STP

Answer 22

The process of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.

Question 23

stratigic business unit (SBU)

Answer 23

A division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers.

Question 24

sustainable competitive advantage

Answer 24

Something the firm can persistently do better than its competitors that is not easily copied and thus can be maintained over a long period of time.

Question 25

target marketing/targeting

Answer 25

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.