MT1 - Chapter 2 Vocab

Question 1

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

mission statement

Answer 2

a statement of the organization’s purpose - what it wants to accomplish in the larger environment

Question 3

business portfolio

Answer 3

the collection of businesses and products that make up the company

Question 4

portfolio analysis

Answer 4

the process by which management evaluates the products and businesses that make up the company

Question 5

growth share matrix

Answer 5

a portfolio planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share

Question 6

product market expansion grid

Answer 6

a portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

Question 7

market development

Answer 7

company growth by identifying and developing new market segments for current company products

Question 8

product development

Answer 8

company growth by offering modified or new products to current market segments

Question 9

diversification

Answer 9

company growth through starting up or acquiring businesses outside the company’s current products and markets

Question 10

value chain

Answer 10

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

Question 11

value delivery network

Answer 11

the network made up of the company, its distributors, and ultimately, the customer who partner with each other to improve the performance of the entire system

Question 12

marketing strategy

Answer 12

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Question 13

market segmentation

Answer 13

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Question 14

market segment

Answer 14

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

Question 15

market targeting

Answer 15

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

Question 16

positioning

Answer 16

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

Question 17

differentiation

Answer 17

actually differentiating the market offering to create superior customer value

Question 18

marketing mix

Answer 18

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

Question 19

SWOT analysis

Answer 19

an overall evaluation of the company’s strengths, weaknesses, opportunities, and threats

Question 20

marketing implementation

Answer 20

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

Question 21

marketing control

Answer 21

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

Question 22

Marketing ROI

Answer 22

the net return from a marketing investment divided by the costs of the marketing investment

Question 23

market oriented

Answer 23

defined in terms of satisfying basic consumer needs

Question 24

stars

Answer 24

high growth, high share SBUs; often need heavy cash investments to finance rapid growth; eventually turn into cash cows

Question 25

cash cows

Answer 25

low growth, high share SBUs

Question 26

question marks

Answer 26

low share, high growth SBUs; require a lot of cash to hold mkt share
should it be built into star or phased out?

Question 27

dogs

Answer 27

low growth, low share SBUs; may generate enough cash to sustain themselves but are not large sources of cash

Question 28

four marketing management functions

Answer 28

analysis
planning
implementation
control

Question 29

functional organization

Answer 29

different marketing activities are headed by a functional specialist

Question 30

geographic organization

Answer 30

sales and marketing people are assigned to specific countries, regions and districts

Question 31

product management organization

Answer 31

a product manager develops and implements a complete strategy and marketing program for a specific product or brand

Question 32

market/customer management organization

Answer 32

market managers are responsible for developing marketing strategies and plans for their specific markets or customers

Question 33

customer management

Answer 33

moving away from managing only product or brand profitability and toward managing customer profitability and customer equity

Question 34

operating control

Answer 34

checking ongoing performance against the annual plan and taking corrective action when necessary

Question 35

strategic control

Answer 35

looking at whether the company’s basic strategies are well matched to its opportunities

Question 36

marketing dashboards

Answer 36

meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance