Chapter 2

Question 1

Strategic planning

Answer 1

This is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.

Question 2

The mission statement

Answer 2

This is the organization’s purpose; what it wants to accomplish in the larger environment.

Question 3

The business portfolio

Answer 3

This is the collection of businesses and products that make up the company.

Question 4

Portfolio analysis

Answer 4

This is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.

Question 5

Growth-share matrix

Answer 5

A portfolio-planning method that evaluates a company´s SBUs in terms of market growth rate and relative market share.

Question 6

Product/market expansion grid

Answer 6

A portfolio tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Question 7

Market penetration

Answer 7

Company growth by increasing sales of current products to current market segments without changing the product.

Question 8

Market development

Answer 8

Company growth by identifying and developing new market segments for current company products.

Question 9

Product development

Answer 9

Company growth by offering modified or new products ti current market segmentation.

Question 10

Diversification

Answer 10

Company growth through starting up or acquiring businesses outside the company´s current products and markets.

Question 11

Value chain

Answer 11

This is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

Question 12

Value delivery network

Answer 12

This is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system.

Question 13

Marketing strategy

Answer 13

This is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.

Question 14

Market segmentation

Answer 14

Dividing a market into district groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Question 15

Market segment

Answer 15

A group of consumers who respond in a similar way to a given set of marketing efforts.

Question 16

Market targeting

Answer 16

Evaluating each market segment´s attractiveness and selecting one or more segments to serve.

Question 17

Positioning

Answer 17

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Question 18

Differentiation

Answer 18

This begins the positioning process.

Question 19

Marketing mix

Answer 19

The set of tactical marketing tools, products, price, place., and promotion that the firm blends to produce the response it wants in the target market.

Question 20

SWOT analysis

Answer 20

An overall evaluation of the company´s, strengths (S), weaknesses (W), opportunities (O), and threats (T).

Question 21

Marketing implementation

Answer 21

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Question 22

Marketing control

Answer 22

Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

Question 23

Marketing return on investment (marketing ROI)

Answer 23

The net return from a marketing investment divided by the costs of the marketing investment.