Chapter 2 Flashcards
What does a company do to start the strategic planning process?
Define its overall purpose and mission.
Mission statements should be defined in terms of satisfying basic customer needs. In other words, they should be __________.
market oriented
What are the steps in the strategic marketing process?
- define company mission
- set company objectives and goals
- design the business portfolio
- plan marketing and other functional strategies
After defining its mission, the next step in strategic planning is to __________.
set company objectives and goals
What is the overall focus of strategic planning?
To create a game plan for long-run survival and growth in consideration of changing marketing opportunities
In portfolio analysis, a company must identify __________, which are key businesses that make up the company.
strategic business units (SBU)
What are the two measurements used in the BCG matrix to classify strategic business units?
Relative market share; market growth rate
The BCG matrix classifies products which have a high market share in a low growth market as __________.
cash cows
According to the growth-share matrix, __________ are high-share, high-growth products. When the market growth slows these products become __________.
stars; cash cows
Strategically, a company may phase out or sell an SBU. This is known as __________.
divesting
What are the 4 strategies for each SBU?
- build
- hold
- harvest
- divest
Define building an SBU
the company can invest more in the business unit to build its share.
Define holding and SBU
invest just enough to hold the SBU’s share at the current level
Define harvesting an SBU
milking its short-term cash flow regardless of the long-term effect
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?
Market penetration
When Under Armour expanded its current products into global markets, it was pursuing which growth strategy?
Market development
When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategy?
Diversification
One key role marketing plays in a company’s strategic planning is to __________.
provide a guiding philosophy
To improve the performance of the __________, many companies today are partnering with other members of the supply chain–—suppliers, distributors, and customers.
customer value delivery network
What is the internal value chain?
marketers must must work closely with partners in other company departments to form an effective internal value chain that serves customers
In which way does increasing customer satisfaction disrupt the internal value chain?
It can increase production costs, increase inventories, and disrupt production schedules.
What is the overall goal of marketing strategy?
To create customer value and build profitable relationships
In determining which customers to serve, a company engages in which two marketing activities?
Segmentation and targeting
Some retailers, such as the Dollar Store, Dollar Tree, and Family Dollar, profitably focus on buyers with modest means. This is an example of __________.
market targeting
What does a market segment consist of?
A group of consumers who respond to the marketing effort in the same way
Effective positioning is based on __________.
differentiation
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
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)
Which of the following is not one of the five marketing management functions?
Customer service
Name the five marketing management functions
—analysis, planning, implementation, organization, and control. (pdf p. 80)
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
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.
