Chapter Two: Strategic Planning for Competitive Advantage

Question 1

Strategic Planning

Answer 1

The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

Question 2

Strategic Business Unit (SBU)

Answer 2

A subgroup of a single business or collection of related business within the larger organization

Question 3

Market Penetration

Answer 3

a marketing strategy that tries to increase market share among existing customers

Question 4

Market Development

Answer 4

A marketing Strategy that entails attracting new customers to existing products

Question 5

Product Development

Answer 5

A marketing strategy that entails the creation of new products for present markets

Question 6

Diversification

Answer 6

a strategy of increasing sales by introducing new products into new markets

Question 7

Planning

Answer 7

The process of anticipating future events and determine strategies to achieve organizational objectives in the future

Question 8

Marketing Planning

Answer 8

designing actives relating to marketing objectives and the changing marketing environment

Question 9

Marketing Plan

Answer 9

a written document that acts as a guidebook of marketing activities for the marketing manager

Question 10

Misson Statement

Answer 10

A statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental condition.

Question 11

Marketing Myopia

Answer 11

Defining a business in terms of goods and services rather than in terms of the benefits customers seek

Question 12

SWOT analysis

Answer 12

identifying internal strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T)

Question 13

Environmental Scanning

Answer 13

Collection and Interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

Question 14

Competitive Advantage

Answer 14

A set of unique features of a company and set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

Question 15

Cost Competitive Advantage

Answer 15

being the low-cost competitor in an industry while maintaining satisfactory profit margins

Question 16

Experience Curves

Answer 16

Curves that show costs declining at a predictable rate as experience with a product increase

Question 17

Product/Service Differentiation Competitive Advantage

Answer 17

the provision of something that is unique and valuable to buyers beyond simply offering a lower price that that of the competition

Question 18

Niche Competitive Advantage

Answer 18

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market

Question 19

sustainable competitive advantage

Answer 19

an advantage that cannot be copied by the competition

Question 20

Marketing Objective

Answer 20

a statement of what is to be accomplished through marketing activities

Question 21

Marketing Strategy

Answer 21

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

Question 22

Market Opportunity Analysis (MOA)

Answer 22

The description and estimation of the size and sales potential of market segments that are interest to the firm and the assessment of key competitors in these market segments

Question 23

Marketing Mix (four Ps)

Answer 23

a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

Question 24

Implementation

Answer 24

The process that turns a marketing plan into action assignments are executed in a way that accomplishes the plan’s objectives

Question 25

Evaluation

Answer 25

gauging the extent to which the marketing objectives have been achieved during the specified time period

Question 26

Control

Answer 26

provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

Question 27

Marketing Audit

Answer 27

a thought, systematic, periodic evaluation of the objectives, strategies, structure and performance of the marketing organization