Chapter 2

Question 1

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

Answer 1

Strategic planning

Question 2

is the organization’s purpose, what it wants to accomplish in the larger environment

Answer 2

Mission statment

Question 3

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

Answer 3

business portfolio

Question 4

is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company

Answer 4

Portfolio analysis

Question 5

is a unit mof the company that has a separate mission and objectives that can be planned separately from other company businesses

Answer 5

Strategic business unit (SBU)

Question 6

is a growth strategy increasing sales to current market segments without changing the product

Answer 6

Market penetration

Question 7

is a growth strategy that identifies and develops new market segments for current products

Answer 7

Market development

Question 8

is a growth strategy that offers new or modified products to existing market segments

Answer 8

Product development

Question 9

is a growth strategy for starting up or acquiring businesses outside the company’s current products and markets

Answer 9

Diversification

Question 10

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

Answer 10

Downsizing

Question 11

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

Answer 11

Value chain

Question 12

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

Answer 12

Value delivery network

Question 13

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

Answer 13

Market segmentation

Question 14

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

Answer 14

Market segment

Question 15

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

Answer 15

Market targeting

Question 16

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

Answer 16

Market positioning

Question 17

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

Answer 17

Marketing mix

Question 18

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

Answer 18

Implementing

Question 19

is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.

Answer 19

Return on marketing investment (marketing ROI)