Chapter 2 - Company and Marketing Strategy

Question 1

Define strategic planning

Answer 1

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities

Question 2

Define marketing strategy

Answer 2

Marketing logic by which a firm creates value and achieves profitable customer relationships.

Question 3

What are 3 things marketing strategy identifies?

Answer 3

1. a firm’s target market
2. a firm’s positioning
3. bases upon which the firm builds a sustainable competitive advantage

Question 4

Define sustainable competitive advantage.

Answer 4

An advantage over the competition that is not easily copied, and can be maintained over a long period of time

Question 5

What are the steps in managing marketing?

Answer 5

Planning Phase:

1. Business mission & objectives
2. Situation Analysis (SWOT)

Implementation Phase./Marketing Strategy:

3. Identify Opportunities (using STP)
4. Implementing marketing mix (4 p’s)

Control Phase:
5. Eval. performance using marketing metrics

Question 6

Define situation analysis

Answer 6

• Gain understanding of the internal and external marketing environments in which a firm is operating
• Utilizes 5 C’s and SWOT

Question 7

What are the 5 C’s?

Answer 7

Customers
Company
Competitors
Collaborators
Context

Question 8

What is SWOT?

Answer 8

Strengths, weaknesses, opportunities, threats

Question 9

Define strengths

Answer 9

Internal capabilities that may help a company reach its objectives (positive)

Question 10

Define weaknesses

Answer 10

Internal limitations that may interfere with a company’s ability to achieve its objective (negative)

Question 11

Define opportunities

Answer 11

External factors that the company may be able to exploit to its advantage (positive)

Question 12

Define threats

Answer 12

Current and emerging external factors that may challenge the company’s performance (negative)

Question 13

Define STP.

Answer 13

• Segmentation, targeting, positioning

- used to identify and evaluate opportunities for growth (Step 3)

Question 14

What are the 4 growth strategies? (identify and define each)

Answer 14

1. Market Penetration (existing market, existing product)
2. Product Development (existing market, new product)
3. Market development (new market, existing product)
4. Diversification (new market, new product)