marketing ch 2 Flashcards
What is the difference between a for-profit and a nonprofit organization?
: A for-profit organization is a privately-owned organization that serves its customers to earn a profit so that it can survive. A nonprofit organization is a nongovernmental organization that serves its customers but does not have profit as an organizational goal. Instead, its goals may be operational efficiency or client satisfaction.
What are examples of a functional level in an organization?
The functional level in an organization is where groups of specialists from the marketing, finance, focus on a specific strategic direction to create value for the organization.
What is the meaning of an organization’s mission?
A mission is a clear, concise, meaningful, inspirational, and long-term statement of the organization’s function in society, often identifying its customers, markets, products, and technologies. It is often used interchangeably with vision.
What is the difference between an organization’s business and its goals?
An organization’s business describes the clear, broad, underlying industry or market sector of an organization’s offering. An organization’s goals (or objectives) are statements of an accomplishment of a task to be achieved, often by a specific time. Goals convert an organization’s mission and business into long- and short-term performance targets to measure how well it is doing
What is the difference between a marketing dashboard and a marketing metric?
A marketing dashboard is the visual computer display of the essential information related to achieving a marketing objective. Each variable in a marketing dashboard is a marketing metric, which is a measure of the quantitative value or trend of a marketing action or result.
What is business portfolio analysis?
Business portfolio analysis is a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments. The purpose of this tool is to determine which SBU or offering generates cash and which one requires cash to fund the organization’s growth opportunities.
Explain the four market-product strategies in diversification analysis.
The four market-product marketing strategies in diversification analysis are:
* Market penetration. Increasing sales of current products in current markets. There is no change in either the basic product line or the markets served. Rather, selling more of the product or selling the product at a higher price generates increased sales.
* Market development. Selling current products to new markets.
* Product development. Selling new products to current markets.
* Diversification. Developing new products and selling them in new markets.
What are the three steps of the planning phase of the strategic marketing process?
The three steps of the planning phase of the strategic marketing process are:
* Situation analysis. Involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it. To do this, an organization uses a SWOT analysis, an acronym that describes an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
* Market-product focus and goal setting. Determines what products an organization will offer to which customers. This is often based on market segmentation—aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action.
* Marketing program. Is where an organization develops the marketing mix elements and budget for each offering.
What are points of difference and why are they important?
Points of difference are those characteristics of a product that make it superior to competitive substitutes—offerings the organization faces in the marketplace. They are important factors in the success or failure of a new product.
What is the implementation phase of the strategic marketing process?
: The implementation phase carries out the marketing plan that emerges from the planning phase and consists of: (1) obtaining resources; (2) designing the marketing organization; (3) defining precise tasks, responsibilities, and deadlines; and (4) executing the marketing program designed in the planning phase
How do the goals set for a marketing program in the planning phase relate to the evaluation phase of the strategic marketing process?
: The planning phase goals, or objectives are used as the benchmarks with which the actual performance results are compared in the evaluation phase to identify deviations from the written marketing plans and then exploit positive ones or correct negative ones.
