Chapter 2

Question 1

Strategic planning

Answer 1

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

Question 2

The purpose of Strategic Planning

Answer 2

is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment

Question 3

The mission statement

Answer 3

is the organization’s purpose; what it wants to accomplish in the larger environment
A market-oriented mission statement defines the business in terms of satisfying basic customer needs

Question 4

A market-oriented mission statement

Answer 4

defines the business in terms of satisfying basic customer needs

Question 5

A mission statement should be:

Answer 5

*Market, not product, oriented
*An “invisible hand”
*Not too narrow, nor too broad
*Fitting the environment
*Emphasize the company’s strengths
*Motivating

Question 6

The business portfolio

Answer 6

is the collection of businesses and products that make up the company

Question 7

Portfolio analysis

Answer 7

is a major activity in strategic planning where management:
*Evaluates the current products and businesses that make up the company &…
*Shapes the future business portfolio

Question 8

Strategic business unit (SBU)

Answer 8

is a unit of the company that has a separate mission and objectives, that can be planned separately from other company businesses. SBU can be a:
Company division
Product line within a division
Single product or brand

Question 9

Analyzing the Current Business Portfolio

Answer 9

*Identify key businesses (strategic business units, or SBUs) that make up the company
*Assess the attractiveness of the company’s various SBUs
*Decide how much support each SBU deserves

Question 10

Designing the business portfolio

Answer 10

involves developing strategies for growth by identifying, evaluating, and selecting promising new product & market opportunities

Question 11

Downsizing

Answer 11

is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy

Question 12

Marketing’s Role in Strategic Planning

Answer 12

*Provide a guiding philosophy…market oriented, customer-centered, outside-in…
*Identify attractive opportunities
*Design effective strategies stressing superior customer value
*Build strong value chains
*Form superior value delivery networks

Question 13

Value chain

Answer 13

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

Question 14

Value delivery network

Answer 14

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

Question 15

Marketing Strategy

Answer 15

is how the company plans to create superior customer value and achieve profitable customer relationships

Question 16

Market segmentation

Answer 16

is the division of a market into distinct groups of buyers who have different needs, characteristics, and behaviors and who require separate products or marketing mixes

Question 17

Market segment

Answer 17

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

Question 18

Market targeting

Answer 18

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

Question 19

Market positioning

Answer 19

is arranging for a product to occupy a clear, distinctive, and desirable place in the mind of the target consumer, relative to competing products

Question 20

Marketing Mix

Answer 20

is the set of controllable, tactical marketing tools - Product, Price, Place, and Promotion - that the firm blends to produce the response it wants in the target market

Question 21

4Ps

Answer 21

• Product, Price, Place, and Promotion
• The “Four Ps” are everything the firm can do to influence demand for its product

Question 22

4Cs

Answer 22

The customer’s viewpoint are the corresponding “Four Cs”: Customer Solution, Cost, Convenience, Communication

Question 23

Marketing Plan Components

Answer 23

*Executive summary
*Marketing situation
*Threats and opportunities
*Objective and issues
*Marketing strategy

Question 24

Implementing

Answer 24

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

Question 25

What is successful implementing ??

Answer 25

Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies

Question 26

Marketing Control

Answer 26

is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved
Operating control: Checking ongoing performance against an annual plan and taking corrective action as needed
Strategic control: Looking at whether the company’s basic strategies (and strengths) are well matched to its opportunities

Question 27

Return on marketing investment (Marketing ROI)

Answer 27

*The net return from a marketing investment divided by the cost of the investment
*A measurement of the profits generated by investments in marketing activities

Marketing ROI means using measures such as sales or profits, but it can also mean using measures such as customer satisfaction, engagement, retention or equity