chp 2

Question 1

strategic planning is?

Answer 1

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

Question 2

strategic marketing management asks two questions?

Answer 2

1. what is the org.’s main activity at a particular time?

2. how will it reach its goals

Question 3

what characteristics do SBU’S have?

Answer 3

1. a distinct mission & specific target market
2. control over its resources
3. its own competitors
4. a single business or a collection of related businesses
5. plans independent of other SBU’S

Question 4

ansoff’s opportunity matrix?

Answer 4

1. market penetration
2. market development
3. product development
4. diversification

Question 5

market penetration is?

Answer 5

try to increase market share among existing customers

Question 6

market development is?

Answer 6

means to attracting new customers to existing products

Question 7

product development is?

Answer 7

creating new products for present markets

Question 8

diversification is?

Answer 8

introduce new products into new markets

Question 9

why write a marketing plan?

Answer 9

the creation & implementation of a complete marketing plan will allow the org. to achieve marketing objectives and succeed.
only is the plan is as good as the info it contains and the effort.

Question 10

defining the business mission?

Answer 10

“what business are we in?”

the business mission profoundly affects the firm’s long run resource allocation, profitability and survival

Question 11

what is SWOT analysis?

Answer 11

Internal- strengths and weaknesses

external- opportunities and threats

Question 12

SWOT- strength

Answer 12

things the company does well

Question 13

SWOT- opportunities

Answer 13

conditions in the external environment that favor strengths

Question 14

SWOT- weaknesses

Answer 14

things the company doesn’t do well

Question 15

SWOT- threats

Answer 15

conditions in the external environment that don’t relate to existing strengths or favor areas of current weaknesses

Question 16

Components of SWOT

Answer 16

1. production costs
2. marketing skills
3. financial resources
4. company or brand image
5. employee capabilities
6. technology

Question 17

what is environmental scanning?

Answer 17

the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the org. or the implementation of the marketing plan

Question 18

what are the six environmental forces?

Answer 18

1. social
2. demographic
3. economic
4. technological
5. political and legal
6. competitive

Question 19

what is competitive advantage?

Answer 19

a 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 20

cost competitive advt. is?

Answer 20

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

Question 21

what are the three types of competitive advt?

Answer 21

1. cost
2. product/service differentiation
3. niche

Question 22

product/service differentiation is?

Answer 22

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

Question 23

niche is?

Answer 23

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

Question 24

what are the sources of cost reduction?

Answer 24

1. experience curves
2. efficient labor
3. no-frills products
4. gov’t subsidies
5. product design
6. re engineering
7. production innovation
8. new service delivery methods