Chapter 2 - Strategic Planning in Contemporary Marketing

Question 1

Planning

Answer 1

• The process of anticipating future events and conditions and of determining the best way to achieve organizational objectives

Question 2

Marketing Planning

Answer 2

• Implementing planning activities devoted to achieving marketing objectives; the basis for the marketing strategy

Question 3

Virtual Conferences

Answer 3

• Teleconferences with computer interfaces

Question 4

Strategic Planning

Answer 4

• The process of determining an organization’s primary objectives and adopting courses of action that will achieve these objectives; long-term

Question 5

Tactical Planning

Answer 5

• Planning that guides the implementation of activities specified in the strategic plan; short-term

Question 6

Top Management

Answer 6

• Spends the most time planning

- Strategic planning

Question 7

Middle Management

Answer 7

• Tactical planning

Question 8

Supervisory Management

Answer 8

• Operational planning

Question 9

Influencers

Answer 9

• People who have influence over other people’s opinions through authority, visibility, or expertise
• Spread word about the company

Question 10

Steps in the Marketing Planning Process

Answer 10

• Defining the Organization’s Mission and Objectives
• Determine Organizational Objectives
• Assessing Organizational Resources and Evaluating Environmental Risks and Opportunities
• Formulating, Implementing, and Monitoring a Marketing Strategy

Question 11

How is the marketing strategy implemented?

Answer 11

• Through operating plans

Question 12

Porter’s Five Forces

Answer 12

• Model developed by strategy expert Michael Porter that identifies five competitive forces that influence planning strategies

Question 13

What are the five forces that influence planning strategies?

Answer 13

• Potential new entrants
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of substitute powers
• Rivalry among competitors

Question 14

First-Mover Strategy

Answer 14

• Theory advocating that the company first to offer a project in a marketplace will be the long-term market winner

Question 15

Second-Mover Strategy

Answer 15

• Theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace

Question 16

SWOT Analysis

Answer 16

• Review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats

Question 17

The Strategic Window

Answer 17

• Limited periods when key requirements of a market and a firm’s particular competencies best fit together

Question 18

What are the elements of a marketing strategy?

Answer 18

• The target market

- The marketing mix variables of product, distribution, promotion, and price which combine to satisfy the target market

Question 19

The Target Market

Answer 19

• The group of people toward whom the firm aims its marketing efforts and merchandise

Question 20

Marketing Mix Variables

Answer 20

• The blend of four strategic elements to fit the needs and preferences of a specific target market
• Product, distribution, promotion, price

Question 21

Strategic Business Units

Answer 21

• Key business units within desired firms

Question 22

Market Share

Answer 22

• The percentage of the market the firm currently controls

Question 23

The BCG Matrix

Answer 23

• Stars: high share, high growth
• Question Marks: low share, high growth
• Cash Cows: high share, low growth
• Dogs: low share, low growth