Chapter 2

Question 1

a subgroup of a single business or collection of related businesses within the larger organization.

Answer 1

Strategic Business Unit

Question 2

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

Answer 2

Strategic Planning

Question 3

a marketing strategy that tries to increase market share among existing customers.

Answer 3

Market Penetration

Question 4

a marketing strategy that entails attracting new customers to existing products.

Answer 4

Market Development

Question 5

a marketing strategy that entails the creation of new products for present markets.

Answer 5

Product Development

Question 6

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

Answer 6

Diversification

Question 7

a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Answer 7

Portfolio Matrix

Question 8

in the portfolio matrix, a business unit that is a fast growing market leader.

Answer 8

Star

Question 9

in the portfolio matrix, a business unit that generates more cash than it needs to maintain it’s market share.

Answer 9

Cash Cow

Question 10

in the portfolio matrix, a business unit that shows rapid growth but poor profit margins.

Answer 10

Problem Child / ?

Question 11

in the portfolio matrix, a business unit that has low growth potential and a small market share.

Answer 11

Dog

Question 12

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

Answer 12

Planning

Question 13

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

Answer 13

Marketing Planning

Question 14

a written document that acts as a guidebook of marketing activities for the marketing manager.

Answer 14

Marketing Plan

Question 15

a statement of the firm’s business based on careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

Answer 15

Mission Statement

Question 16

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

Answer 16

Marketing Myopia

Question 17

identifying internal strengths and weaknesses as well as external opportunities and threats.

Answer 17

SWOT Analysis

Question 18

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.

Answer 18

Environmental Scanning

Question 19

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

Answer 19

Competitive Advantage

Question 20

being the low cost competitor in industry while maintaining satisfactory profit margins.

Answer 20

Cost Competitive Advantage

Question 21

curves that show costs declining at a predictable rate as experience with a product increases.

Answer 21

Experience Curves

Question 22

the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Answer 22

Product/service differentiation Competitive advantage

Question 23

the advantage achieved when a firm seeks to target and effectively serve a small segment of the market.

Answer 23

Niche Competitive Advantage

Question 24

an advantage that cannot be copied by the competition.

Answer 24

Sustainable Competitive Advantage

Question 25

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

Answer 25

Marketing Objective

Question 26

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.

Answer 26

Marketing Strategy

Question 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.

Answer 27

Market Opportunity Analysis

Question 28

a unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Answer 28

Marketing Mix (4 Ps)

Question 29

the 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.

Answer 29

Implementation

Question 30

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

Answer 30

Evaluation

Question 31

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

Answer 31

Control

Question 32

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.

Answer 32

Marketing Audit