Chapter 2

Question 1

Strategic Planning

Answer 1

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

Question 2

Marketing Strategy

Answer 2

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.

Question 3

Marketing Plan

Answer 3

A written document that specifies the activities to be performed to implement and control the organization’s marketing activities.

Question 4

Core Competencies

Answer 4

Things a company does extremely well, which sometimes gives it an advantage over its competition.

Question 5

Market Oppurtunity

Answer 5

A combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Question 6

Strategic Windows

Answer 6

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market.

Question 7

Competitive Advantage

Answer 7

The result of a company matching a core competency to opportunities is has discovered in the marketplace.

Question 8

SWOT Analysis

Answer 8

Assessment of an organization’s strengths, weaknesses, opportunities, and threats.

Question 9

Mission Statement

Answer 9

A long-term view, or vision, of what the organization wants to become.

Question 10

Marketing Objective

Answer 10

A statement of what is to be accomplished through marketing activities.

Question 11

Corporate Strategy

Answer 11

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals.

Question 12

Strategic Business Unit (SBU)

Answer 12

A division, product line, or other profit center within the parent company.

Question 13

Market

Answer 13

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

Question 14

Market Share

Answer 14

The percentage of a market that actually buys a specific product from a particular company.

Question 15

Market Growth/Market Share Matrix

Answer 15

A helpful business tool, based on the philosophy that a product’s market growth rate and it’s market share are important considerations in determining its marketing strategy.

Question 16

Sustainable Competitive Advantage

Answer 16

An advantage that competition cannot copy.

Question 17

Marketing Planning

Answer 17

The systematic process of assessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies, and establishing guidelines for implementation and control of the marketing program.

Question 18

Marketing Implementaion

Answer 18

The process of putting marketing strategies into action.

Question 19

Intended Strategy

Answer 19

The strategy the organization decides on during the planning phase and wants to use.

Question 20

Realized Strategy

Answer 20

The strategy that actually takes place.

Question 21

External Customers

Answer 21

Individuals who patronize a business–the familiar definition of “customers.”

Question 22

Internal Customers

Answer 22

The company’s employees.

Question 23

Internal Marketing

Answer 23

A management philosophy that coordinates internal exchanges between the organization and its employees to achieve successful external exchanges between the organization and its customers.

Question 24

Total Quality Management (TQM)

Answer 24

A philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customer’s perceptions of quality.

Question 25

Benchmarking

Answer 25

Comparing the quality of the company’s goods, services, or processes with that of its best-performing competitors.

Question 26

Empowerment

Answer 26

Giving customer-contact employees authority and responsibility to make marketing decisions without seeking approval of their supervisors.

Question 27

Centralized Organization

Answer 27

A structure in which top-level managers delegate little authority to lower levels.

Question 28

Decentralized Organization

Answer 28

A structure in which decision-making authority is delegated as far down the chain of command as possible.

Question 29

Marketing Control Process

Answer 29

Establishing performance standards, evaluating actual performance by comparing it with established standards, and reducing the differences between desired and actual performance.

Question 30

Performance Standard

Answer 30

An expected level of performance against which actual performance can be compared.