Chapter 2

Question 1

Strategic Planning

Answer 1

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

Question 2

Mission Statement

Answer 2

Statement of the organization’s purpose; what it wants to accomplish in the larger environment

Question 3

Business Portfolio

Answer 3

The collection of businesses and products that make up the company

Question 4

Portfolio Analysis

Answer 4

The process by which management evaluates the products and businesses that make up the company

Question 5

Growth Share Matrix

Answer 5

A portfolio planning method that evaluates a company’s SBUs in terms of its market growth rate and relative market share

Question 6

Product/Market Expansion Grid

Answer 6

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Question 7

Market Penetration

Answer 7

Company Growth by increasing sales of current products to current market segments without changing the prodcut

Question 8

Market Development

Answer 8

Company Growth by identifying and developing new market segments for current company products

Question 9

Product Development

Answer 9

Offering modified or new products to current markets

Question 10

Diversification

Answer 10

Starting up or buying businesses beyond its current products and markets

Question 11

Value Chain

Answer 11

The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products

Question 12

Value Delivery Network

Answer 12

The network made up of the company, suppliers, its distributers, and ultimately its customers who partner with each other to improve the performance of the entire system

Question 13

Market Segmentation

Answer 13

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

Question 14

Market Segment

Answer 14

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

Question 15

Market Targeting

Answer 15

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Question 16

Positioning

Answer 16

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

Question 17

Differentiation

Answer 17

Actually differentiating the market offering to create superior customer value

Question 18

Marketing Mix

Answer 18

The set of tactical marketing tools; product, price, place, and promotion that the firm blends to produce the response it wants in the target market

Question 19

SWOT Analysis

Answer 19

Strengths
Weaknesses
Opportunities
Threats

Question 20

Strengths

Answer 20

Internal Capabilities, Resources, and positive situational factors that may help the company service its customers and achieve its objectives

Question 21

Weaknesses

Answer 21

Internal limitations and negative situational factors that may interfere with the company’s performance

Question 22

Opportunities

Answer 22

Favorable factors or trends in the external environment the the company may be able to exploit to its advantage

Question 23

Threats

Answer 23

Unfavorable external factors or trends that may present challenges to performance

Question 24

Marketing Implementation

Answer 24

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Question 25

Marketing Control

Answer 25

Measuring and evaluating the results of marketing strategies and plans taking corrective action to ensure that the objectives are achieved

Question 26

Return on Marketing Investment (or marketing ROI)

Answer 26

The net return from a marketing investment divided by the costs of the marketing investment