Chapter 2. Company and Marketing Strategy

Question 1

Strategic Planning

Answer 1

the process of developing and maintaining a strategic fit between the firm’s goals and capabilities and its changng marketing oppurtunities.

Question 2

What is the goal of writing a mission statement?

Answer 2

Turn the mission statement into detailed supporting objectives for each level of management.

Question 3

Business Portfolio

Answer 3

the collection of businesses and products that make up the company. The best portfolios fit the company’s strengths and weakness to opportunities.

Question 4

What is Portfolio Analysis?

Answer 4

the process of evaluating the products and businesses that make up the company, through SBUs (Strategic Business Units).

Question 5

Describe the Growth-Share Matrix

Answer 5

Evaluates a company’s SBUs in terms of Market Growth Rate and Relative Market Share.

Question 6

Describe the Product/Market Expansion Grid (PMEG)

Answer 6

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

Question 7

Describe the Value Chain

Answer 7

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

Question 8

What is a Value Delivery Network?

Answer 8

composed of a company, suppliers, distributors, and customers who partner with each other to improve the system’s abiltiy to deliver customer value.

Question 9

What is an example of the importance of a Value Delivery Network?

Answer 9

Ford’s performance against Toyota depends on the quality of Ford’s overall Value Delivery Network versus Toyota’s.

Question 10

Market Strategy

Answer 10

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

Question 11

Whare the components of a Marketing Strategy?

Answer 11

1. Market Segmentation
2. Marketing Targeting
3. Positioning
4. Differentation

Question 12

Market Segmentation

Answer 12

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors - requires separate marketing strategies or mixes.

Question 13

Market Targeting

Answer 13

Evaluating each Market Segment’s attractiveness and selecting one or more segments to serve.

Question 14

Positioning

Answer 14

Arranging for a product to occupy a distinct and desirable place relative to competitors in the minds of consumers.

Question 15

Differentiation

Answer 15

Actually differentiating the market offering (product) to create superior customer value. Deliver and communicate the Position to target consumers.

Question 16

What is the Marketing Mix (Four P’s)?

Answer 16

1. Product
2. Price
3. Place
4. Promotion

Question 17

What is the consumer perspective of the Four P’s (the Marketing Mix)?

Answer 17

1. Acceptability
2. Affordability
3. Accessibility
4. Awareness

Question 18

What are the 5 Marketing Management functions?

Answer 18

1. Analysis
2. Planning
3. Implementation
4. Organization
5. Control

Question 19

SWOT Analysis

Answer 19

an overall evaluation of the company’s:

1. Strengths (Internal)
2. Weaknesses (Internal)
3. Opportunities (External)
4. Threats (External)

Question 20

Marketing Planning

Answer 20

Choosing marketing strategies to attain the company’s goals. Addresses the “what & why” of marketing.

Question 21

Marketing Implementation

Answer 21

The process that turns marketing plans into marketing actions to accomplish marketing objectives.

Question 22

Marketing Organization

Answer 22

Carries out marketing strategies, plans, and activities.

Question 23

Marketing Control

Answer 23

Measuring and evaluating results of marketing strategies and taking corrective action to ensure objectives are reached.

Question 24

What are the two types of Marketing Control?

Answer 24

Operating Control - performance against the annual plan
Strategic Control - compatibility between strategies and opportunities

Question 25

Marketing ROI

Answer 25

the net return from a marketing investment divided by the cost of the marketing investment. Measures the profits generated by investments in marketing activities.