Chapter 2

Question 1

3 components of marketing strategy:

Answer 1

target market, related marketing mix, and how a firm will build a sustainable competitive advantage

Question 2

sustainable competitive advantage?

Answer 2

advantage over competition that isn’t easily copied and can be maintained long-term

Question 3

target market?

Answer 3

inside customers

Question 4

4 macro strategies for developing customer value:

Answer 4

customer excellence, operational excellence, product excellence, and locational excellence

Question 5

customer excellence?

Answer 5

retaining loyal customers and good service

Question 5

product excellence

Answer 5

products w high perceived value and effective branding

Question 5

operational excellence

Answer 5

efficient operations and good supply chain and HR management

Question 6

locational excellence

Answer 6

good location and internet presence

Question 7

marketing plan:

Answer 7

analysis of current marketing situation, opportunities by engaging in STP and implementing marketing mix

Question 8

mission statement

Answer 8

firm’s objective and scope of activities

Question 9

4 growth strategies:

Answer 9

market penetration, market development, product development, diversification

Question 10

market penetration

Answer 10

attracting new customers to current market or encouraging current customers to buy more per visit

Question 11

market development

Answer 11

reach new market segments

Question 12

product development

Answer 12

new products to current market

Question 13

diversification

Answer 13

new product to a new market segment

Question 14

3 phases of strategic marketing process

Answer 14

planning, implementation, control

Question 15

planning

Answer 15

mission/vision defined, examine how various players affect firm’s success

Question 16

implementation

Answer 16

identify and evaluate opportunities using STP and the 4 P’s

Question 17

control

Answer 17

evaluate performance and take corrective action

Question 18

segmentation

Answer 18

dividing market into groups of people w different wants and gear products towards them

Question 19

targeting

Answer 19

evaluate segment’s attractiveness and decide which to pursue

Question 20

positioning

Answer 20

make consumers understand the firm’s product compared to competitors

Question 21

components of BCG portfolio analysis?

Answer 21

market growth rate (Y axis), relative market share (X axis), stars, question marks, cash cows, dogs

Question 22

stars

Answer 22

high MGR, high RMS, dominant

Question 23

question marks

Answer 23

high MGR, low RMS, provide resources to become stars or withdraw to phase out

Question 24

cash cows

Answer 24

low MGR and high RMS, receive investments to develop high RMS, excess resources spun off to other products

Question 25

dogs

Answer 25

low MGR and low RMS, phased out

Question 26

portfolio analysis evaluates products and allocates resources which are profitable, performed at _____ or _____ levels

Answer 26

SBU; product-like

Question 27

strategic business unit

Answer 27

division of firm that can be operated independently

Question 28

what are the SBU’s

Answer 28

americas, europe, middle east, aftica, asia-pacific

Question 29

product-line

Answer 29

group of associated items which customers think of as a part of a group