Chapter 2: company and marketing strategy

Question 1

strategic planning

Answer 1

the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities

Question 2

Steps in defining a marketing oriented mission

Answer 2

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

Question 3

Mission statement

Answer 3

statement of the organization’s purpose - what it wants to accomplish in the larger environment. Mission statements should be market-oriented and defined in terms of satisfying basic customer needs

Question 4

Setting goals and objectives

Answer 4

turning this broad mission into detailed supporting objectives for each level of management

Question 5

business portfolio

Answer 5

The collection of businesses and products that make up a company.

Question 6

What does the best business portfolio have

Answer 6

the one that best fits the company’s strengths and weaknesses to opportunities in the environment

Question 7

portfolio analysis

Answer 7

the process by which management evaluates the products and businesses that make up a company

Question 8

SBU

Answer 8

a company division, a product line within a division or sometimes a single product or brand

Question 9

Growth share matrix

Answer 9

a portfolio planning method that evaluates a company’s SBU in terms of market growth rate and relative market share

Question 10

What are the 4 categories of the BCG matrix

Answer 10

stars: high growth high share
Cash cows: low growth high share
question marks: low share high growth
dogs: low growth low share

Question 11

product / market expansion grid (ansoff matrix)

Answer 11

portfolio planning tool for identifying company growth opportunities

Question 12

market penetration

Answer 12

existing product, existing market

Question 13

Product development

Answer 13

Existing market, new product

Question 14

Market development

Answer 14

Existing product, new market

Question 15

Diversification

Answer 15

new product, new market

Question 16

value chain

Answer 16

the series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firms products

Question 17

Value delivering network

Answer 17

A network composed of the company, suppliers, distributors and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value

Question 18

marketing srategy

Answer 18

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Question 19

What does the customer value-driven marketing strategy consist on

Answer 19

market segmentation, market segment, market targeting, positioning and differentiation

Question 20

What is the marketing mix

Answer 20

the set of tactical marketing tools that the firm blends to produce the response it wants in the target market

Consists of product, price, place, and promotion

Question 21

Marketing mix tools

Answer 21

Product: goods and services offered
price: amount of money customers must pay
Place: company activities to make the product available
promotion: activities that communicate the merits of the product and persuade target customers to buy it

Question 22

SWOT analysis

Answer 22

an overall evaluation of the company’s strengths, weaknesses, opportunities and threats

Question 23

Marketing planning

Answer 23

process through which the company decides what it wants to do with each business unit

Question 24

marketing implementation

Answer 24

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Question 25

marketing department organization

Answer 25

the company must design a marketing organization that can carry out marketing strategies and plans