CHAPTER 8: Implementing Strategies: Marketing, Finance/Accounting, R&D, and M.I.S. Issues

Question 1

tweeting

Answer 1

posting messages of at most 140 characters on Twitter

Question 2

market segmentation

Answer 2

the marketing technique of subdividing consumers into distinct subsets according to needs and buying habits in order to more effectively and economically direct marketing efforts

Question 3

product positioning

Answer 3

also called perceptual mapping; a two-dimensional, four-quadrant marketing tool designed to position a firm versus its rival firms in a schematic diagram in order to better determine effective marketing strategies

Question 4

marketing mix variables

Answer 4

the four to five Ps of marketing; place, promotion, product, price, and additionally, people

Question 5

multidimensional scaling

Answer 5

the same as product positioning, except encompasses three or more evaluative criteria simultaneously

Question 6

vacant niche

Answer 6

In product/market positioning, this is an area in the perceptual map that reveals a customer segment not being served by the firm or rival firms

Question 7

market segment

Answer 7

areas in a perceptual map where there is a cluster of ideal points indicating an attractive group of potential customers to target

Question 8

demand void

Answer 8

opposite of a market segment; areas in a perceptual map where there isn’t a cluster of ideal points indicating an unattractive group of potential customers to target

Question 9

earnings per share/earnings before interest and taxes (EPS/EBIT) analysis

Answer 9

a financial technique to determine whether debt, stock, or combination of death and stock is the best alternative for raising capital to implement strategies

Question 10

treasury stock

Answer 10

an item in the equity portion of the balance sheet that reveals the dollar amount of common stock owned by the company itself

Question 11

projected financial statement analysis

Answer 11

a financial technique that enables a firm to forecast the expected financial results of various strategies and approaches; involves developing income statements and balance sheets for future periods of time

Question 12

financial budget

Answer 12

a financial document that details/reveals how funds will be obtained and spent for a specified period of time in the future

Question 13

cash budget

Answer 13

the most common type of financial budget; develop to forecast future receipts and disbursement of cash in operations, investments, and financing

Question 14

goodwill

Answer 14

If a firm acquires another firm and pays more than the book value, then the additional amount is called a premium, and becomes this, which is a line item on the assets portion of the balance sheet

Question 15

price-earnings ratio method

Answer 15

this method includes dividing the market price of the firm’s common stocks by the annual earnings per share and multiplying this number by the firm’s average net income for the past five years

Question 16

outstanding shares method

Answer 16

a method for determining the cash worth of a firm by multiplying the number of shares outstanding by the market price per share; also called the book value, market value, or market capitalization

Question 17

discount

Answer 17

If an acquiring firm pays less for another firm than the firm’s stock price times its number of shares of stock outstanding (book value or market value), then that number less than the actual purchase price is called this