Marketing 210 Exam 1 Chapter 2

Question 1

Portfolio Matrix

Answer 1

Classifies each SBU (Strategic business unit) by its present or forecast growth and market share.

Question 2

Star

Answer 2

Fast-growing market leader.

Question 3

Cash Cow

Answer 3

SBU (Strategic business unit) that generates more cash than it needs to maintain its market share.

Question 4

Problem Child AKA Question Mark AKA ?

Answer 4

Rapid growth but poor profit margins. It has a low market share in a high-growth industry.

Question 5

Dog

Answer 5

Low growth potential and a small market share.

Question 6

Planning

Answer 6

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

Question 7

Marketing Planning

Answer 7

Involves designing activities relating to marketing objectives and the changing marketing environment. Marketing planning is the basis for all marketing strategies and decisions.

Question 8

Marketing Plan

Answer 8

Issues such as product lines, distribution channels, marketing communications, and pricing are all delineated in the marketing plan.

Question 9

Mission Statement

Answer 9

The foundation of any marketing plan is the firm’s mission statement, which answers the question “What business are we in?”.

Question 10

Marketing Myopia

Answer 10

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

Question 11

SWOT analyst

Answer 11

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

Question 12

Environmental Scanning

Answer 12

The 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 13

Competitive Advantage

Answer 13

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 14

Cost Competitive Advantage

Answer 14

Low-cost competitor in an industry while maintaining satisfactory profit margins.

Question 15

Experience Curves

Answer 15

Costs decline at a predictable rate as experience with a product increases.

Question 16

Product/Service Differentiation Competitive Advantage

Answer 16

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Question 17

Niche Competitive Advantage

Answer 17

Target and effectively serve a single segment of the market.

Question 18

Sustainable Competitive Advantage

Answer 18

One that cannot be copied by the competition.

Question 19

Marketing Objective

Answer 19

A statement of what is to be accomplished through marketing activities.

Question 20

Marketing Stratagy

Answer 20

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 21

(MOA)

Market Opportunity Analysis

Answer 21

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

Question 22

Marketing Mix

Answer 22

A unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) is designed to produce mutually satisfying exchanges with a target market.

Question 23

The Four Characteristics of a Marketing Audit

Answer 23

Comprehensive: The marketing audit covers all the major marketing issues facing an organization—not just trouble spots.

Systematic: The marketing audit takes place in an orderly sequence and covers the organization’s marketing environment, internal marketing system, and specific marketing activities. The diagnosis is followed by an action plan with both short-run and long-run proposals for improving overall marketing effectiveness.

Independent: The marketing audit is normally conducted by an inside or outside party that is independent enough to have top management’s confidence and has the ability to be objective.

Periodic: The marketing audit should be carried out on a regular schedule instead of only in a crisis. Whether it seems successful or is in deep trouble, any organization can benefit greatly from such an audit.

Question 24

Implemation

Answer 24

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

Question 25

Evaluation

Answer 25

Gauging the extent to which 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 thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.