Final Exam - Chapter 2

Question 1

Strategic Marketing Management

Answer 1

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Question 2

Effectiveness

Answer 2

the degree to which long-term customer relationships help achieve an organization’s objectives

Question 3

Efficiency

Answer 3

minimizing the resources an organization uses to achieve a specific level of desired customer relationships

Question 4

Strategic Planning

Answer 4

the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy (waterfall effect)

Question 5

Mission Statement

Answer 5

a long-term view, or vision, of what the organization wants to become; goals derived from m.s.; who are our customers? What is our core competency?

Question 6

Waterfall Effect

Answer 6

Mission Statement
Corporate Strategy
Business-Unit Strategy
Marketing Strategy
Marketing Mix Elements (4Ps)

Question 7

Corporate Strategy

Answer 7

determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to reach the organization’s goals

Question 8

Broad Issues Corporate Strategy Planners are Concerned With

Answer 8

corporate culture
competition
differentiation
diversification
interrelationships among business units
environmental/social issues

Question 9

Strategic Business Unit (SBU)

Answer 9

a division, product line, or other profit center within the parent company

Question 10

Market

Answer 10

is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

Question 11

Market Share

Answer 11

The percentage of a market that actually buys a specific product from a particular company is referred to as that product’s (or business unit’s)

Question 12

Market Growth/Market Share Matrix

Answer 12

business tool based on the philosophy that a product’s market growth rate and its market share are important consideration in determining its market strategy (developed by the Boston Consulting Group)

Question 13

Stars

Answer 13

high product-market growth/high market share

Question 14

Chash Cows

Answer 14

low product-market growth/high market share

Question 15

Dogs

Answer 15

low product-market growth/low market share

Question 16

Question Marks

Answer 16

high product-market growth/low market share

Question 17

Core Competencies

Answer 17

things a company does extremely well, which sometimes give it an advantage over its competition

Question 18

Market Opportunity

Answer 18

a combination of circumstances and timing that permits an organization to take action to reach a particular target market

Question 19

Strategic Windows

Answer 19

temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

Question 20

Competitive Advantage

Answer 20

is the result of a company matching a core competency to opportunities it has discovered in the marketplace

Question 21

SWOT Analysis

Answer 21

a tool marketers use to assess an organization’s strengths, weaknesses, opportunities, and threats

Question 22

Strengths

Answer 22

competitive advantages or core competencies that give the company an advantage in meeting the needs of its target market

Question 23

Weaknesses

Answer 23

any limitations a company faces in developing or implementing a marketing strategy

Question 24

Opportunities

Answer 24

favorable conditions in the environment that could produce rewards for the organization if acted on properly

Question 25

Threats

Answer 25

conditions or barriers that may prevent the company from reaching its objectives

Question 26

First-Mover Advantage

Answer 26

is the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

Question 27

Late-Mover Advantage

Answer 27

is the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Question 28

Marketing Objective

Answer 28

a statement of what is to be accomplished though marketing activities

Question 29

Marketing Strategy

Answer 29

a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the need of that marketing

Question 30

Sustainable Competitive Advantage

Answer 30

one that the competition cannot copy in the foreseeable future

Question 31

Marketing Implementation

Answer 31

the process of putting marketing strategies into action

Question 32

Centralized Organizations

Answer 32

authority is concentrated at the top level; very little delegation to lower levels

Question 33

Decentralized Organizations

Answer 33

decision making authority is delegated as far down the chain of command as possible

Question 34

Strategic Performance Evaluation

Answer 34

establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy if needed

Question 35

Performance Standard

Answer 35

the expected level of performance against which actual perforamce can be compared

Question 36

Sales Analysis

Answer 36

uses sales figures to evaluate a firm’s current performance

Question 37

Marketing Cost Analysis

Answer 37

breaks down and classifies costs to determine which are associated with specific marketing efforts

Question 38

Marketing Plan

Answer 38

written document that specifies the activities to be performed to implement and control the organization’s marketing strategies