Chapter 3

Question 1

business planning

Answer 1

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

Question 2

business plan

Answer 2

plan that includes the decisions that guide the entire organization

Question 3

market plan

Answer 3

document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies how the company will implement and control the strategies embedded in the plan

Question 4

strategic planning

Answer 4

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

Question 5

strategic business units (SBU’s)

Answer 5

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

Question 6

functional planning

Answer 6

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

Question 7

market planning

Answer 7

functional planning marketers do; market planning typically includes both a broad 3-5 year marketing plan to support the firm’s strategic plan and a detailed annual plan for the coming year

Question 8

operational planning

Answer 8

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

Question 9

mission statement

Answer 9

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 10

situation analysis

Answer 10

assessment of a firm’s internal and external environments

Question 11

internal environment

Answer 11

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

Question 12

external environment

Answer 12

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

Question 13

SWOT analysis

Answer 13

analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment (Strengths, Weakness, Opportunities, and Threats)

Question 14

business portfolio

Answer 14

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

Question 15

portfolio analysis

Answer 15

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

Question 16

BCG growth-market share matrix

Answer 16

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

Question 17

stars

Answer 17

SBU’s with products that have a dominant market share in high-growth markets

Question 18

cash cows

Answer 18

SBU’s with a dominant market share in a low-growth-potential market

Question 19

question marks

Answer 19

SBU’s with low market shares in fast-growth markets

Question 20

dogs

Answer 20

SBU’s with a small share of a slow-growth market; business that offer specialized products in limited markets that are not likely to grow quickly

Question 21

market penetrating strategies

Answer 21

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

Question 22

market development strategies

Answer 22

growth strategies that introduce existing products to new markets

Question 23

product development strategies

Answer 23

growth strategies that focus on selling new products in existing markets

Question 24

diversification strategies

Answer 24

growth strategies that emphasize both new products and new markets

Question 25

control

Answer 25

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

Question 26

activity metrics

Answer 26

metrics focused on measuring and tracking specific activities taken with a firm that are part of different marketing processes

Question 27

outcome metrics

Answer 27

metrics focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes

Question 28

return on marketing investment (ROMI)

Answer 28

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

Question 29

action plans

Answer 29

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 30

leading indicators

Answer 30

performance indicators that provide insight into the performance of current efforts in a way that allows a marketer to adjust relevant marketing activities (hopefully) resulting in performance improvements against the current action plan

Question 31

lagging indicators

Answer 31

performance indicators that provide insight into the performance of an action plan based on outcomes realized

Question 32

operational plans

Answer 32

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 task