Chapter 3

Question 1

Business planning

Answer 1

An ongoing process of making decisions that guides the firm both in the short term and in the long term

Question 2

Business plan

Answer 2

A plan that includes the decisions that guide the entire organization

Question 3

Marketing plan

Answer 3

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.

Question 4

Strategic planning

Answer 4

A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival.

Question 5

Strategic business units (SBUs)

Answer 5

Individual units within the firm that operates like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

Question 6

Functional planning

Answer 6

A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic planning

Question 7

Operational Planning

Answer 7

A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans.

Question 8

Mission statement

Answer 8

A formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.

Question 9

Situation analysis

Answer 9

An assessment of a firm’s internal and external environments.

Question 10

Internal environment

Answer 10

The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the oranization.

Question 11

External environment

Answer 11

The uncontrollable elements outside an organization that may affect its performance either positively or negatively.

Question 12

SWOT analysis

Answer 12

An analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment.

Question 13

Business portfolio

Answer 13

The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.

Question 14

Portfolio analysis

Answer 14

A management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units.

Question 15

BCB growth-market share matrix

Answer 15

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

Question 16

Stars

Answer 16

SBUs with products that have a dominant market share in high-growth markets.

Question 17

Cash cows

Answer 17

SBUs with a dominant marketing share in a low-growth-potential market.

Question 18

Question marks

Answer 18

SBUs with low market shares in fast-growth markets.

Question 19

Dogs

Answer 19

SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly.

Question 20

Market penetration strategies

Answer 20

Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.

Question 21

Market development strategies

Answer 21

Growth strategies that introduce existing products to new markets

Question 22

Product development strategies

Answer 22

Growth strategies that focus on selling new products in existing markets.

Question 23

Diversification strategies

Answer 23

Growth strategies that emphasize both new products and new markets.

Question 24

Control

Answer 24

A process that entails measuring actual performance, comparing, this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis.

Question 25

Return on marketing investment (ROMI)

Answer 25

Quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise.

Question 26

Action plans

Answer 26

Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as”marketing programs”

Question 27

Operational plans

Answer 27

Plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines to accomplish the tasks.