Chapter 2 Study Guide Flashcards
What is the difference between a for-profit and a nonprofit organization?
For-profit: privately owned organization that service customers for a profit that allows the organization to survive.
Nonprofit: a nongovernmental organization that serves its customers. but does not have profit as an organizational goal.
What are examples of a functional level in an organization?
Marketing Department
Finance Department
HR Department
What is the meaning of an organization’s mission?
a statement of the function, identifying who its customers are, what it will produce, and what technology it will use.
What is the difference between an organization’s business and its goals?
Business refers to the industry
Goals are statements of what is to be achieved
What is the difference between a marketing dashboard and a marketing metric?
Marketing dashboard: a visual display of the essential information related to achieving a marketing objective.
Marketing metric: a measure of qualitative value or tend of marketing actions or results
Explain the 4 market product strategies in diversification analysis.
- Market penetration - used to increase sales of current products in current markets
- Market development - used to sell products to new markets
- Product development - strategy of selling new products to current markets
- Diversification - strategy of developing new products and selling them to new markets
What are the 3 steps of the planning phase of the strategic marketing process?
- Conduct a SWOT analysis
- Develop a market-product focus, customer value proposition, and goals
- Design a marketing program.
What is a customer value proposition?
a cluster of benefits that an organization promises customers/segments to satisfy their needs.
What is the implementation phase of the strategic marketing process?
Executing the strategic marketing process consists of
1. obtaining resources
2. designing the marketing organization
3. defining precise tasks, responsibilities, and deadlines
4. executing the marketing program designed in the planning phase
How do the goals set for a marketing program in the planning phase relate to the evaluation phase of the strategic marketing process?
Ensure that we are achieving the desired outcomes we set out to achieve, to identify deviations from the written marketing plans and then exploit positive ones or correct negative ones
Profit
the money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
Strategy
an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.
Core Values
the fundamental, passionate, and enduring principles of an organization that guide it conduct over time.
Mission
a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies.
Organizational culture
consists of the set of values, ideas, attitudes, and norms of behavior that is learned and shared among members of an organization.
Business
describes the clear, broad, underlying industry or market sector of an organization’s offering.
Goals/objectives
the statements of an accomplishments of a task to be achieved, often by a specific time.
Market share
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Marketing plan
the road map for the marketing actions of an organization for a specified future time period.
Business plan
a road map for the entire organization for a specified future period of time.
Marketing dashboard
the visual computer display of the essential information related to achieving a marketing objective
Marketing metric
a measure of the quantitative value or trend of a marketing action or result
Business Portfolio Analysis
a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.
Diversification Analysis
a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
Strategic marketing process
an approach whereby an organization allocates its marketing mix resources to reach its target markets.
Situation analysis
involves taking stock of where a firm/product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
SWOT analysis
an acronym describing an organization’s appraisal of its internal
Strengths and Weaknesses
and its external
Opportunities and Threats
Market Segmentation
involves aggregating prospective buyers into groups or segments that
1. have common needs
2. will respond similarly to a marketing action
Points of Difference
those characteristics of a product that make it superior or competitive substitutes
Marketing Strategy
the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Marketing tactics
the detailed, day-to-day operational marketing actions for each element of the marketing mix that contributes to the overall success of marketing strategies.
Step 2 in the planning phase of the strategic marketing process consists of
market-product focus and goal setting
Core values refer to
the fundamental, passionate, and enduring principles that guide an organization’s conduct over time.
During Step 3 of the strategic marketing process, firms like Ben and Jerry’s engage in all of the following marketing activities except:
a. select target markets
b. set marketing and product goals
c. develop the marketing program
d. find points of difference
c. develop the marketing program
The American railroad industry faced a serious decline in the 20th century.
What business did the rail executives think they were in?
What business is a railroad company really in?
Why is this difference important?
- The Railroad business
- The transportation business; people, goods, equipment, resources.
- This difference is important because their initial analysis lost sight of their customers and what their offerings provided them. The error made it difficult for railroad companies to compete with other transportation companies
Diversification refers to the marketing strategy of
selling new products to new markets.
Define the functional level of an organization.
where groups of specialists focus on specific strategic direction to create value for the organization
What are points of difference and why are they important?
POD: those characteristics of a product that make it superior to competitive substitutes
Important factors in the success or failure of a new product.
