Chapter 3:Strategic Market Planning

Question 1

business plan

Answer 1

the decisions that guide the entire organization or its business units

Question 2

business planning

Answer 2

an ongoing process of decision-making that guides the firm in both the short term and the long term.

Question 3

marketing plan

Answer 3

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

Question 4

strategic plan

Answer 4

is the managerial decision process that matches the firm’s resources (such as its financial assets and workforce) and capabilities (the things it is able to do well because of its expertise and experience) to its market opportunities for long-term growth.

Question 5

functional planning

Answer 5

it involves the various functional areas of the firm, such as marketing, finance, and human resources.
an overall strategy or plan describing how, when, and where the objectives and goals will be accomplished for each function as well as for the entire business.

Question 6

operational planning

Answer 6

the managers who are responsible for planning at a third level
-such as sales managers, marketing communication managers, brand managers, and market research managers.
consists of day to day operations of supervisory management
steps: use action plan to implement marketing plan and then use marketing metrics to measure how well the plan is going

Question 7

mission

Answer 7

its purpose—its core reason for being
-It follows logically that a mission statement is a formal document that describes the organization’s overall purpose and what it intends to achieve in terms of its customers, products, and resources

Question 8

vision

Answer 8

is what a firm aspires to do or be in the future

Question 9

situational analysis

Answer 9

The second step in strategic planning is to assess the firm’s internal and external environments
-environmental analysis, or a business review.

Question 10

internal envoirnment

Answer 10

all the controllable elements inside a firm that influence how well the firm operates
-firms strengths and weaknesses

Question 11

SWOT analysis

Answer 11

This document summarizes the ideas from the situation analysis. It provides a clear focus on the meaningful strengths (S) and weaknesses (W) in the firm’s internal environment and on the opportunities (O) and threats (T) coming from outside the firm (the external environment).

Question 12

business portfolio

Answer 12

the range of different businesses that a large firm operates
-determining which SBU will benefit the company the most and where to put them

Question 13

BCG growth market share matrixs

Answer 13

→focuses on determining the potential of a firm’s existing SBUs to generate cash that the firm can then use to invest in other businesses.
-created by boston consulting group

Question 14

stars

Answer 14

require large funding but have a dominant share in the market

Question 15

cash cows

Answer 15

dominant share in low growth potential markets
-Firms usually milk cash cows of their profits to fund the growth of other SBUs.
-disney theme parks

Question 16

question marks

Answer 16

problem children—are SBUs with low market shares in fast-growth markets. When a business unit is a question mark, the key issue is whether through investment and new strategy it can be transformed into a star

Question 17

dogs

Answer 17

command small shares of slow-growth markets. They are businesses that offer specialized products in limited markets that are not likely to grow quickly.
-disney and espn

Question 18

market penetration strategy

Answer 18

seek to increase sales of existing products to existing markets, such as current users, nonusers, and users of competing brands within a market.
-ex.mcdonalds making the app and kiosks

Question 19

market development strategy

Answer 19

introduce existing products to new markets. This strategy can mean expanding into a new geographic area, or it may mean reaching new customer segments within an existing geographic market.

Question 20

product development strategy

Answer 20

create growth by selling new products in existing markets. Product development may mean extending the firm’s product line by developing new variations of the item, or it may mean altering or improving the product to provide enhanced performance.
Ex. coke releasing new diet coke cans and flavors

Question 21

diversification strategy

Answer 21

emphasize both new products and new markets to achieve growth.

Question 22

outcome metrics

Answer 22

which are focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes.
-number of sales

Question 23

return of market investment

Answer 23

consider marketing as an investment rather than an expense; this distinction drives firms to use marketing more strategically to enhance the business. For many firms today, ROMI is the metric du jour to analyze how the marketing function contributes to the bottom line.
(1) identify the most appropriate and consistent measure to apply,
(2) combine review of ROMI with other critical marketing metrics (one example is marketing payback—how quickly marketing costs are recovered)
(3) fully consider the potential long-term impact of the actions ROMI drives

Question 24

agile marketing

Answer 24

which refers to using data and analytics to continuously source promising opportunities or solutions to problems in real time, deploying tests quickly, evaluating the results, and rapidly iterating (doing it over and over)

Question 25

scrum

Answer 25

which had the original goal to embrace the uncertainty and creativity that already governed software development
-that whenever you start a project, you should regularly check in, see whether what you’re doing is heading in the right direction, and verify that it’s actually what people want.
-Scrum provides a framework that aims to create a culture of transparency, inspection, and adaptation while making it easier for team members to produce consistently great products. This approach lays out steps to achieve these objectives:
Sprint planning
Daily Scrum (also known as daily standup)
Sprint review
Sprint retrospective

Question 26

contingency planning

Answer 26

that better takes into account the market uncertainties and constancy of change in business today. Put succinctly, contingency planning assesses the risk of a variety of possible, mostly external, environmental factors and their potential level of impact on the firm’s ability to add value and serve its market through its offerings.
-Based on this assessment, enlightened firms develop and prepare for multiple strategic paths that are often referred to as scenarios