Company and Marketing Strategy

Question 1

(Company-Wide Strategic Planning)

What is strategic planning?

Answer 1

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.

Question 2

(Company-Wide Strategic Planning)

Steps in strategic planning

Answer 2

> defining the company mission
setting company objective + goals
designing the business portfolio
planning marketing + other functional strategies

A mission statement is a statement of the organization’s purpose—what it wants to accomplish in the larger environment.

The company needs to turn its broad mission into detailed supporting objectives for each level of management.

Business portfolio is the collection of businesses and products that make up the company.

Question 3

(Company-Wide Strategic Planning)

Business objectives

Answer 3

> Build profitable customer relationships
Invest in research
Improve profits

Question 4

(Company-Wide Strategic Planning)

Marketing objectives

Answer 4

> Increase market share
Create local partnerships
Increase promotion

Question 5

(Designing the Business Portfolio)

What is portfolio analysis?

Answer 5

a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.

Question 6

(Designing the Business Portfolio)

Strategic Business Units (SBUs) can be a

Answer 6

> Company division
Product line within a division
Single product or brand

Question 7

(Designing the Business Portfolio)

Analysing the Current Business Portfolio

Answer 7

> Identify strategic business units (SBUs)
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves

Question 8

(Designing the Business Portfolio)

Product/market expansion grid

Answer 8

looks at new products, existing products, new markets, and existing markets for company growth opportunities.

  E products      N products

EM market product
penetration development

NM market diversification
developement

Question 9

(Designing the Business Portfolio)

Downsizing

Answer 9

when a company must cut, harvest, or separate businesses that are unprofitable or that no longer fit the strategy.

Question 10

(Partnering with Other Company Departments)

Value chain

Answer 10

a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

Question 11

(Partnering with Others in the Marketing System)

Value delivery network

Answer 11

made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system.

Question 12

(Customer Value-Driven Marketing Strategy)

Marketing strategy

Answer 12

is the marketing logic by which thecompany hopes to create customer value and achieve profitable customer relationships.

Question 13

(Customer Value-Driven Marketing Strategy)

Market segmentation

Answer 13

is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes.

Question 14

(Customer Value-Driven Marketing Strategy)

Market segment

Answer 14

a group of consumers who respond in a similar way to a given set of marketing efforts.

Question 15

(Customer Value-Driven Marketing Strategy)

Market targeting

Answer 15

the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Question 16

(Customer Value-Driven Marketing Strategy)

Market positioning

Answer 16

the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Question 17

(Customer Value-Driven Marketing Strategy)

Differentiation

Answer 17

begins the positioning process.

Question 18

(Developing an Integrated Marketing Mix)

Marketing mix

Answer 18

the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market.

Question 19

(Developing an Integrated Marketing Mix)

Examples of product

Answer 19

variety
quality
design
features
brand name
packaging
services

Question 20

(Developing an Integrated Marketing Mix)

Examples of price

Answer 20

list price
discounts
allowances
payment period
credit terms

Question 21

(Developing an Integrated Marketing Mix)

Examples of promotion

Answer 21

advertising
personal selling
sales promotion
public relations

Question 22

(Developing an Integrated Marketing Mix)

Examples of place

Answer 22

channels
coverage
location
inventory
transportation
logistics

Question 23

(Managing the Marketing Effort)
Marketing Analysis
SWOT analysis

Answer 23

Internal pos = strengths
> internal capabilities that may help a company to reach its objective

internal neg = weakness
> internal limitations that may interfere w/ a companys ability to achieve its objectives

external pos = opportunities
> external factors that the company may be able to exploit to its advantage

external neg = threats
> current and emerging external factors that may challenge the companys performance

Question 24

(Managing the Marketing Effort)

Marketing Implementation

Answer 24

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Addresses who, where, when, and how

Question 25

(Managing the Marketing Effort)

Marketing Control

Answer 25

> Evaluating results
Taking corrective action
Operating control
Strategic control

Question 26

(Measuring and Managing Return on Marketing Investment)

Return on Marketing Investment (Marketing ROI)

Answer 26

> Net return from a marketing investment divided by the costs of the marketing investment
Measurement of the profits generated by investments in marketing activities

Question 27

(Segmenting Consumer Markets)

Geographic segmentation

Answer 27

divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.

Question 28

(Segmenting Consumer Markets)

Demographic segmentation

Answer 28

divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Question 29

(Segmenting Consumer Markets)

Psychographic segmentation

Answer 29

divides a market into different segments based on social class, lifestyle, or personality characteristics.

Question 30

(Segmenting Consumer Markets)

Behavioral segmentation

Answer 30

divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Question 31

(Segmenting International Markets)

Answer 31

> Geographic location
Economic factors
Political and legal factors
Cultural factors

Question 32

Requirements for Effective Segmentation

Answer 32

> Measurable
> Accessible
> Substantial
> Differentiable
> Actionable

Question 33

(Selecting Target Market Segments)

Individual marketing

Answer 33

involves tailoring products and marketing programs to the needs and preferences of individual customers.

Also known as
> One-to-one marketing
> Mass customization

Question 34

Product position

Answer 34

is the way the product is defined by consumers on important attributes.