Chapter 2 Flashcards

1
Q

What does a company do to start the strategic planning​ process?

A

Define its overall purpose and mission.

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2
Q

Mission statements should be defined in terms of satisfying basic customer needs. In other​ words, they should be​ __________.

A

market oriented

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3
Q

What are the steps in the strategic marketing process?

A
  1. define company mission
  2. set company objectives and goals
  3. design the business portfolio
  4. plan marketing and other functional strategies
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4
Q

After defining its​ mission, the next step in strategic planning is to​ __________.

A

set company objectives and goals

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5
Q

What is the overall focus of strategic​ planning?

A

To create a game plan for​ long-run survival and growth in consideration of changing marketing opportunities

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6
Q

In portfolio​ analysis, a company must identify​ __________, which are key businesses that make up the company.

A

strategic business units (SBU)

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7
Q

What are the two measurements used in the BCG matrix to classify strategic business​ units?

A

Relative market​ share; market growth rate

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8
Q

The BCG matrix classifies products which have a high market share in a low growth market as​ __________.

A

cash cows

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9
Q

According to the​ growth-share matrix,​ __________ are​ high-share, high-growth products. When the market growth slows these products become​ __________.

A

​stars; cash cows

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10
Q

​Strategically, a company may phase out or sell an SBU. This is known as​ __________.

A

divesting

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11
Q

What are the 4 strategies for each SBU?

A
  1. build
  2. hold
  3. harvest
  4. divest
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12
Q

Define building an SBU

A

the company can invest more in the business unit to build its share.

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13
Q

Define holding and SBU

A

invest just enough to hold the SBU’s share at the current level

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14
Q

Define harvesting an SBU

A

milking its short-term cash flow regardless of the long-term effect

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15
Q

To grow​ sales, Under Armour increased its spending on advertising by 35 percent to increase sales in its current markets. Which growth strategy does this​ represent?

A

Market penetration

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16
Q

When Under Armour expanded its current products into global​ markets, it was pursuing which growth​ strategy?

A

Market development

17
Q

When a firm starts up or buys a business outside of its current product line and​ markets, it is pursuing which growth​ strategy?

A

Diversification

18
Q

One key role marketing plays in a​ company’s strategic planning is to​ __________.

A

provide a guiding philosophy

19
Q

To improve the performance of the​ __________, many companies today are partnering with other members of the supply chain–—​suppliers, ​distributors, and customers.

A

customer value delivery network

20
Q

What is the internal value chain?

A

marketers must must work closely with partners in other company departments to form an effective internal value chain that serves customers

21
Q

In which way does increasing customer satisfaction disrupt the internal value​ chain?

A

It can increase production​ costs, increase​ inventories, and disrupt production schedules.

22
Q

What is the overall goal of marketing​ strategy?

A

To create customer value and build profitable relationships

23
Q

In determining which customers to​ serve, a company engages in which two marketing​ activities?

A

Segmentation and targeting

24
Q

Some​ retailers, such as the Dollar​ Store, Dollar​ Tree, and Family​ Dollar, profitably focus on buyers with modest means. This is an example of​ __________.

A

market targeting

25
What does a market segment consist​ of?
A group of consumers who respond to the marketing effort in the same way
26
Effective positioning is based on​ __________.
differentiation
27
The four Ps of the marketing mix have been redefined in​ buyer's terms as the four As. Product design influences​ __________, price affects​ __________, place affects​ __________, and promotion influences​ __________.
​acceptability; affordability;​ accessibility; awareness
28
What are the main components of a marketing​ plan?
An executive​ summary, situation​ analysis, objectives, marketing​ strategy, action​ programs, budgets and​ controls, and threats and opportunities (p.82 on pdf)
29
Which of the following is not one of the five marketing management​ functions?
Customer service
30
Name the five marketing management functions
—analysis, planning, implementation, organization, and control. (pdf p. 80)
31
The demand for organic produce is growing. Green Acres Farms grows only organic vegetables. In a SWOT​ analysis, the rising demand for organic produce would be​ a(n) __________ for Green Acres​ Farms, and the fact that they grow only organic vegetables is​ a(n) __________.
​opportunity; strength
32
Which of the following is a true statement regarding managing and measuring marketing return on investment​ (ROI)?
Marketers are increasingly using measures such as customer acquisition and​ retention, customer​ engagement, and customer equity as measures of ROI.