Chapter 2

Question 1

Marketing Strategy

Answer 1

a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage

Question 2

Sustainable Competitive Advantage

Answer 2

something the firm can persistently do better than its competitors

Question 3

Customer Excellence

Answer 3

involves a focus on retaining loyal customers and excellent customer service

Question 4

Operational Excellence

Answer 4

involves a firm’s focus on efficient operations and excellent supply chain management

Question 5

Product Excellence

Answer 5

involves a focus on achieving high-quality products; effective branding and positioning is key

Question 6

Locational Excellence

Answer 6

a method of achieving excellence by having a strong physical location and/or Internet presence

Question 7

Planning Phase

Answer 7

the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers define the mission or vision of the business and evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success

Question 8

Implementation Phase

Answer 8

the part of the strategic marketing planning process when marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and implement the marketing mix using the four P’s

Question 9

Control Phase

Answer 9

the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take and necessary corrective actions

Question 10

Mission Statement

Answer 10

a broad description of a firm’s objectives and the scope of activities it plans to undertake attempts to answer two main questions: what type of business is it? what does it need to do to accomplish its goals and objectives?

Question 11

Situation Analysis

Answer 11

second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of opportunities and threats

Question 12

Market Segmentation

Answer 12

the process of dividing the market into groups of customers with different needs, wants, or characteristics- who therefore might appreciate products or services geared especially for them

Question 13

Target Marketing/ Targeting

Answer 13

the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market

Question 14

Market Positioning

Answer 14

involves the process of defining the marketing mix variables so that target consumers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Question 15

Metric

Answer 15

a measuring system that quantifies a trend, dynamic, or characteristic

Question 16

Strategic Business Unit (product line)

Answer 16

a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives

Question 17

Market Share

Answer 17

percentage of a market accounted for by a specific entity

Question 18

Relative Market Share

Answer 18

a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Question 19

Market Growth Rate

Answer 19

the annual rate of growth of the specific market in which the product competes

Question 20

Market Penetration Strategy

Answer 20

a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers

Question 21

Market Development Strategy

Answer 21

a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international

Question 22

Product Development Strategy

Answer 22

a growth strategy that offers a new product or service to a firm’s current target market

Question 23

Diversification Strategy

Answer 23

a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve

Question 24

Related Diversification

Answer 24

a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity

Question 25

Unrelated Diversification

Answer 25

a growth strategy whereby a new business lacks any common elements with the present business