Chapter 2

Question 1

strategic planning

Answer 1

the process of developing and maintaing a strategic fit between the organisations goals and capabilities and tis changing marketing opportunities

Question 2

mission statement

Answer 2

statement of the organisations purpose- what it wants to accomplish in the larger environment
- should be market oriented and defined in terms of satisfying basic customer needs

Question 3

business portfolio

Answer 3

the collection of businesses and products that make up the company

Question 4

strategic business units

Answer 4

SBU, can be a company division, product line within a division, or single product or brand

Question 5

growth-share matrix

Answer 5

a portfolio-planning method that evaluates a companies SBU’s in terms of market growth rate and relative market share (Star, Question Mark, Cash cow, dog)

Question 6

market growth rate

Answer 6

measure of market attractiveness

Question 7

relative market share

Answer 7

a measure of company strength in the market

Question 8

stars

Answer 8

need heavy investment to finance their rapid growth, eventually growth will slow down and they will turn into cash cows

Question 9

cash cows

Answer 9

need less investment to hold their market share; produce a lot of cash

Question 10

question marks

Answer 10

require a lot of cash to hold their share and increase it, have to decide which to move to stars and which to phase out

Question 11

dogs

Answer 11

generate enough cash to maintain themselves but do not promise to be large sources of cash

Question 12

problems with BCG

Answer 12

difficult, time-consuming and costly to implement

not much information about future

Question 13

product/market expansion grid

Answer 13

tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Question 14

market penetration

Answer 14

making more sales to current customers without changing its original products

Question 15

product/market expansion grid

Answer 15

image…

Question 16

market development

Answer 16

company growth by identifying and developing new market segments for current company products

Question 17

product development

Answer 17

company growth by offering modified or new products to current market segments

Question 18

diversification

Answer 18

company growth through starting up or acquiring businesses outside the companies current products and markets

Question 19

value chain

Answer 19

departments that carry out value-creating actives to design, produce, market, deliver, and support a firms products

Question 20

value delivery network

Answer 20

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

Question 21

marketing strategy

Answer 21

the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships

Question 22

market segmentation

Answer 22

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

Question 23

market segment

Answer 23

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

Question 24

market targeting

Answer 24

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

Question 25

positioning

Answer 25

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

Question 26

marketing mix

Answer 26

product, price, place, promotion (takes the sellers view and not the buyers)

Question 27

marketing implementation

Answer 27

the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives

Question 28

marketing department organisation

Answer 28

functional, geographic, product management, market or customer management

Question 29

marketing control

Answer 29

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

Question 30

return on marketing investment (ROI)

Answer 30

the net return from a marketing investment divided by the costs of the marketing investment; it measures profits generated by investments in marketing activities