Chapter 2 Vocab

Question 1

Business

Answer 1

The clear, broad, underlying industry or market sector of an organization’s offering.

Question 2

Business Portfolio Analysis

Answer 2

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.

Question 3

Core Values

Answer 3

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

Question 4

Diversification Analysis

Answer 4

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 5

Goals (Objectives)

Answer 5

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called “objectives”.

Question 6

Market Segmentation

Answer 6

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Question 7

Market Share

Answer 7

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Question 8

Marketing Dashboard

Answer 8

The visual computer display of the essential information related to achieving a marketing objective.

Question 9

Marketing Metric

Answer 9

A measure of the quantitative value or trend of a marketing action or result.

Question 10

Marketing Plan

Answer 10

A road map for the marketing actions of an organization for a specified future time period, such as one year or five years.

Question 11

Marketing Strategy

Answer 11

The means by which a marketing goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.

Question 12

Marketing Tactics

Answer 12

The detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies.

Question 13

Mission

Answer 13

A statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with “vision”.

Question 14

Objectives (Goals)

Answer 14

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called “goals”.

Question 15

Organizational Culture

Answer 15

The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

Question 16

Points of Difference

Answer 16

Those characteristics of a product that make it superior to competitive substitutes.

Question 17

Profit

Answer 17

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.

Question 18

Situation Analysis

Answer 18

Taking stock of where the firm or 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.

Question 19

Strategic Marketing Process

Answer 19

The approach whereby an organization allocates its marketing mix resources to reach its target markets.

Question 20

Strategy

Answer 20

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

Question 21

SWOT Analysis

Answer 21

An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

S trengths
W eaknesses
O pportunities
T hreats

Question 22

Market Penetration

Answer 22

A marketing strategy to increase sales of current products in current markets.

Question 23

Market Development

Answer 23

A marketing strategy to sell current products to new markets.

Question 24

Product Development

Answer 24

A marketing strategy of selling new products to current products.

Question 25

Diversification

Answer 25

A marketing strategy of developing new products and selling them in new markets.

Question 26

organization

Answer 26

a legal entity that consists of people who share a common mission. this motivates them to develop offerings (goods, services, or ideas) that create value for both the organization and its customers by satisfying their needs and wants.

Question 27

for-profit organization

Answer 27

often called a business firm,
is a privately owned organization, such as target, nike, that serves its customers to earn a profit so that it can survive.

Question 28

nonprofit organization

Answer 28

a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Instead, its goals may be operational efficiency or client satisfaction.

Question 29

government agency

Answer 29

is a federal, state, county, or city unit that provides a specific service to its constituents.

Question 30

Corporate level

Answer 30

where top management directs overall strategy for the entire organization.

Question 31

Strategic business unit level

Answer 31

managers set a more specific strategic direction for their businesses to exploit value-creating opportunities.

Question 32

strategic business unit (SBU)

Answer 32

a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined target market.

Question 33

functional level

Answer 33

where groups of specialists actually create value for the organization.

Question 34

mission statement

Answer 34

should be clear, concise, meaningful, inspirational, and long-term.

Question 35

with a marketing dashboard, a marketing manager glances at a graph or table and makes a decision whether to take action or to analyze the problem further.

Answer 35

choosing which marketing metric to display is critical for a busy manager, who can be overwhelmed with irrelevant data.

Question 36

todays marketers use data visualization,

Answer 36

which presents information about an organization’s marketing metrics graphically so marketers can quickly (1) spot deviations from plans during the evaluation phase and (2) take corrective actions.

Question 37

competencies

Answer 37

its special capabilities–the skills, technologies, and resources—that distinguish it from other organizations and can provide customer value.

Question 38

exploiting competencies can lead to success.

Answer 38

.

Question 39

competitive advantage

Answer 39

a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

Question 40

business portfolio analysis

Answer 40

is a technique that managers use to quantify performance measures and growth targets to analyze the firms’ strategic business units (SBUs) as though they were a collection of separate investments. the purpose of this tool is to determine which SBU or offering generates cash and which one requires cash to find the organization’s growth opportunities.

Question 41

cash cows

Answer 41

are SBUs that generate large amounts of cash, far more than they can use. They have dominant shares of slow-growth markets and provide cash to cover the organization’s overhead and to invest in other SBUs.

Question 42

stars

Answer 42

are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows.

Question 43

question marks

Answer 43

are SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. the name implies management’s dilemma for these SBUs : choosing the right ones to invest in and phasing out the rest.

Question 44

dogs

Answer 44

are SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may not become real winners for the organization. Dropping SBUs that are dogs may be required if they consume more cash than they generate, except when relationships with other SBUs, competitive considerations, or potential strategic alliances exist.

Question 45

an organization’s SBUs often start as question marks and go counterclockwise around to become stars, then cash cows, and finally dogs.

Answer 45

because an organization has little influence on the market growth rate, its main objective is to try to change its relative dollar or unit market share. to do this, management decides what strategic role each SBU should have in the future and either injects cash into or removes cash from it.