Chapter 2

Question 1

Core competencies

Answer 1

Things firm does extremely well; sometimes gives advantage over competition –
Financial/human resources, reputation, goodwill, brand name

Question 2

Market opportunity

Answer 2

Combination of circumstances and timing permits organization to reach target market –
Core competencies matched to opportunities;
Strategic windows

Question 3

Strategic windows

Answer 3

Temporary period of optimal fit between key requirements of market and particular firm capabilities

Question 4

Competitive advantage

Answer 4

Result of company matching core competency to marketplace opportunities –
Manufacturing skills, technical skills, marketing skills

Question 5

SWOT Analysis

Answer 5

Assessment of organization’s strengths, weaknesses, opportunities, threats

Question 6

Strengths

Answer 6

competitive advantages, core competencies

Question 7

Weaknesses

Answer 7

limitations on competitive capability

Question 8

Opportunities

Answer 8

favorable environment conditions

Question 9

Threats

Answer 9

conditions/barriers to reach objectives

Question 10

Mission statement

Answer 10

Long-term view/vision of what organization wants to become; answers two questions –
Who are our customers?
What is our core competency?

Question 11

Marketing objective

Answer 11

Statement of what is to be accomplished through marketing activities to match strengths to opportunities/provide conversion of weakness to strength.
Be stated clear, simple terms;
Be accurately measurable;
Specify time frame for accomplishment;
Be consistent with business-unit and corporate strategy

Question 12

Market-Growth/Market-Share Matrix

Answer 12

Strategic planning tool based on philosophy product’s market growth rate and share important to determine market strategy;
Factors determining SBU/position:
Product-market growth rate;
Relative market share

Question 13

Star

Answer 13

Product-market growth: High

Relative market share: High

Question 14

Question mark

Answer 14

Product-market growth: High

Relative market share: Low

Question 15

Cash cow

Answer 15

Product-market growth: Low

Relative market share: High

Question 16

Dog

Answer 16

Product-market growth: Low

Relative market share: Low

Question 17

Marketing strategy

Answer 17

Target market selection - Define/understand target market:
Focus on specific, profitable customer groups,
Recognize changes in market;

Create market mix:
Analyze needs, preference, behavior,
Skills and resources required for product design, pricing, distribution, promotion,
Maintain consistency & flexibility in mix decisions

Question 18

Creating marketing plan

Answer 18

Marketing planning - Process of assessing opportunities and resources, determining objectives, defining strategies, establishing implementation and marketing program control guidelines

Question 19

Total Quality Management (TQM)

Answer 19

Constantly improving, never satisfied: uniform commitment to quality in all areas promotes culture meeting customers’ quality perceptions;
Benchmarking: compare quality of goods/services/processes with best-performing competitiors;
Empowerment: give customer-contact employees authority and responsibility to make marketing decisions on own

Question 20

Machiavelli

Answer 20

“It’s better to be feared than loved.”

Question 21

Taylor

Answer 21

Piece-rate system;

Doesn’t create best quality

Question 22

Gilbreath

Answer 22

“Therblig”

Least amount of energy and time to complete task

Question 23

Hawthorne

Answer 23

Environmental changes affect employees

Question 24

Deming

Answer 24

Quality > Quantity;
Always improving;
Originally shunned by American producers, went to Japan and established Japan’s quality philosophies

Question 25

Components of Total Quality Management (TQM)

Answer 25

Continuous quality improvement;

Empowered employees