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AEM 2420 > Chapter 2 -- Overview > Flashcards

Chapter 2 -- Overview Flashcards

1
Q

What is a strategic business unit (SBU)?

A

a subgroup of a single business or collection of related businesses within the larger organization

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2
Q

What are the characteristics of SBUs?

A
  1. distinct mission & target market
  2. control over its resources
  3. its own competitors
  4. a single business or a collection of related businesses
  5. plans independent of other SBUs in total organization
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3
Q

Draw Ansoff’s Strategic Opportunity Matrix.

A

See drawing

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4
Q

Define market penetration.

A

a marketing strategy that tries to increase market share among existing customers

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5
Q

Define market development.

A

a marketing strategy that entails attracting new customers to existing products

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6
Q

How is an Innovation Matrix different from Ansoff’s Strategic Opportunity Matrix?

A

Enables a company to see exactly what types of assets need to be developed and what types of markets are possible to grow into (or create) based on company’s core capabilities

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7
Q

Draw the Innovation Matrix.

A

Draw & learn meanings of core innovation, adjacent innovation, transformational innovation

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8
Q

What is the portfolio matrix?

A

a tool for allocating resources among products or SBUs on the basis of relative market share and market growth rate

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9
Q

What is a star?

A

In the portfolio matrix, a business unit that is fast-growing market leader.

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10
Q

What is a cash cow?

A

In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share

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11
Q

What is a problem child (question mark)?

A

In the portfolio matrix, a business unit that shows rapid growth but poor profit margins

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12
Q

What is a dog?

A

In the portfolio matrix, a business unit that has low growth potential and small market share

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13
Q

Draw the Portfolio Matrix/BCG Model.

A

Draw

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14
Q

Define marketing myopia.

A

Defining a business in terms of goods and services rather than in terms of the benefits customers seek

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15
Q

What is market opportunity analysis (MOA)?

A

the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in the market segments

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16
Q

What are the 5 types of competitive advantages?

A

Cost competitive, product/service differentiation, niche, sustainable

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17
Q

Draw the General Electric Model.

A

Draw

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18
Q

What are the elements of a marketing plan?

A

Business mission statement, situation, or SWOT, analysis, objectives, marketing strategy (target market strategy, market mix), implementation & evaluation & control

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19
Q

What does the SWOT Analysis consist of?

A

Strengths, Weaknesses, Opportunities, Threats

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20
Q

What should you focus on when creating a SWOT analysis?

A

organizational resources, such as production costs, marketing skills, financial resources, company or brand image, employee capabilities, and available technology

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21
Q

What is environmental scanning?

A

collection and interpretation of information on forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan; helps ID market opportunities and threats, and provide guidelines for the design of marketing strategy

22
Q

What are the three types of competitive advantages?

A
  1. cost
  2. product/service differentiation
  3. niche
23
Q

How does cost leadership occur?

A

From obtaining inexpensive raw materials, creating an efficient scale of plant operations, designing products for ease of manufacture, controlling overhead costs, and avoiding marginal customers

24
Q

Having a cost competitive advantage means being the ___ competitor in an industry while maintaining ___ profit margins.

A

low-cost; satisfactory

25
Q

What is an experience curve?

A

Costs decline at a predictable rate as experience with a product increases; reflect learning by doing, technological advances, and economies of scale

26
Q

What are 5 different ways that costs can be reduced?

A
  1. Experience curves
  2. Efficient labor
  3. No frills goods and services
  4. Government subsidies
  5. Product design
  6. Reengineering
  7. Production innovations
  8. New methods of service delivery
27
Q

When does a product/service differentiation competitive advantage exist?

A

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition

28
Q

What is a niche competitive advantage?

A

It seeks to target and effectively serve a single segment of the market; most important for small companies with limited resources

29
Q

When are niche strategies used by companies?

A

To serve a limited geographic market

30
Q

What is a sustainable competitive advantage?

A

An advantage that cannot be copied by the competition (ex. Netflix)

31
Q

Successful firms that engage in competitive advantage don’t imitate, they ___.

A

They stake out a position unique in some manner from its rivals.

32
Q

Competitive advantages in the future markets are:

A

skills and assets; assets include patents, copyrights, locations, equipment, and technology that are superior to those of the competition; skills are functions like customer service and promotion that firms perform better than competitors

33
Q

What is a marketing objective?

A

A statement of what is to be accomplished through marketing activities; must be consistent with and indicate the priorities of the oragnization

34
Q

What are the functions of objectives?

A
  1. communicate marketing management philosophies and provide direction for lower-level marketing managers so marketing efforts are integrated and pointed in one direction
  2. serve as motivators
  3. motivate those charged with achieving objectives
  4. process forces executives to clarify their thinking
  5. form a basis for control
35
Q

What should marketing objectives consist of to be effective?

A
  1. should be realistic
  2. should be measurable
  3. should be time specific
  4. should be compared to a benchmark
36
Q

How are target markets selected?

A
  1. by appealing to the entire market with one marketing mix
  2. concentrating on one segment
  3. appealing to multiple market segments using multiple marketing mixes
37
Q

What is the marketing mix?

A

The blend of product, place, promotion, and pricing strategies, designed to produce mutually satisfying exchanges with a target market

38
Q

Which P does the marketing mix start with?

A

Product (product offering and product strategy)

39
Q

Product includes not only the physical unit, but also….

A

its package, warranty, after-sale service, brand name, company image, value, etc.

40
Q

What does promotion include?

A

advertising, public relations, sales promotion, and personal selling

41
Q

What is promotion’s role in the marketing mix?

A

To inform, educate, persuade, and remind them of the benefits of an organization or a product

42
Q

Which of the 4 Ps is the easiest to change?

A

the price is the most flexible of the 4 Ps and easiest to change

43
Q

What is implementation?

A

The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives

44
Q

What does implementation involve?

A

detailed job assignments, activity descriptions, time lines, budgets, and lots of communications

45
Q

What is one difficult part of implementation?

A

Acceptance of changes; people fear change because they worry they will lose something

46
Q

What are 4 common reasons why marketing objectives fail?

A
  1. unrealistic objectives
  2. inappropriate marketing strategies
  3. poor implementation
  4. changes in the environment after the objective was specified and the strategy implemented
47
Q

Why are evaluation and control important?

A

Evaluation entails gauging the extent to which marketing objectives have been achieved during the time period. Control provides the mechanisms for evaluating marketing results based on objectives and for correcting actions that don’t move the organization towards reaching these goals

48
Q

What is marketing audit?

A

a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization; helps management allocate resources efficiently and improve communication

49
Q

What are the three post-audit tasks?

A
  1. audit should profile existing weaknesses, strengths, and opportunities
  2. ensure that the role of audit has been clearly communicated
  3. make someone accountable for implementing recommendations
50
Q

What are the 4 characteristics of a marketing audit?

A
  1. comprehensive
  2. systematic
  3. independent
  4. periodic
51
Q

What does effective strategic planning require?

A
  1. continual attention
  2. creativity
  3. management commitment (such as management support & participation)
52
Q

What is an example of a company that uses top management’s support and participation for successful strategic planning?

A

Google

AEM 2420 (5 decks)

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