Chapter 2

Question 1

strategic planning

Answer 1

the managerial process for creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

Question 2

planning

Answer 2

process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Question 3

marketing planning

Answer 3

involves designing activities relating to marketing objectives and the changing marketing environment

Question 4

marketing plan

Answer 4

written document that acts as a guidebook of marketing activities for the marketing manager
why write it? it provides clearly stated activities that help employees and managers understand and work toward common goals

Question 5

mission statement

Answer 5

answers the question, “What business are we in?”

Question 6

marketing myopia

Answer 6

defining a business in terms of goods and services rather than in terms of the benefits customers seek.

Question 7

strategic business unit

Answer 7

a subgroup of a single business or collection of related business within a larger business

Question 8

SWOT analysis

Answer 8

the firm should identify its internal strengths and weaknesses and also examine external opportunities and threats

Question 9

environmental scanning

Answer 9

the collection and interpretation of info about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

Question 10

marketing objective

Answer 10

statement of what is to be accomplished through marketing activities
realistic
measurable
time specific 
compared to a benchmark
consistent with the organization's goals

Question 11

competitive advantage

Answer 11

a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition

Question 12

cost competitive advantage

Answer 12

being low cost competitor in an industry while maintaining satisfactory profit margins

Question 13

experience curve

Answer 13

tells us that costs decline at a predictable rate as experience with a product increases

Question 14

product/service differentiation competitive advantage

Answer 14

exists when a firm provides something unique that is valuable to buyers beyond simply offering a low price

Question 15

niche competitive advantage

Answer 15

seeks to target and effectively serve a single segment of the market

Question 16

sustainable competitive advantage

Answer 16

one that cannot be copied by the competition

Question 17

market penetration

Answer 17

tying to increase market share among existing customers

Question 18

market developments

Answer 18

attracting new customers to existing products

Question 19

product development

Answer 19

entails the creation of new products for present markets

Question 20

diversification

Answer 20

a strategy of increasing sales by introducing new products into new markets

Question 21

portfolio matrix

Answer 21

classifies each SBU by its present or forecast growth and market share

Question 22

star

Answer 22

market leader and growing fast

Question 23

cash cow

Answer 23

an SBU that usually generates more cash than it needs to maintain its market share

Question 24

problem child(question mark)

Answer 24

shows rapid growth but poor profit margins

Question 25

dog

Answer 25

low growth potential and a small market share

Question 26

marketing strategy

Answer 26

involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Question 27

market opportunity analysis

Answer 27

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

Question 28

marketing mix

Answer 28

refers to a unique blend of product, place, promotion, pricing strategies(four P’s) designed to produce mutually satisfying exchanges with a target market

Question 29

four p’s

Answer 29

product, place, promotion, pricing strategies

Question 30

implementation

Answer 30

process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives

Question 31

evaluation

Answer 31

entails gauging the extent to which marketing objectives have been achieved during the specified time

Question 32

control

Answer 32

provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

Question 33

marketing audit

Answer 33

a thorough, systematic, periodic evaluation of the objective, strategies, structure, and performance of the marketing organization, four parts
comprehensive, systematic, independent, periodic