Marketing Chapter 2 Flashcards (2022)

Term

Strategic Planning

Definition

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

Term

Mission Statement

Definition

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

Term

Business Portfolio

Definition

The collection of businesses and products that make up the company.

Term

Portfolio Analysis

Definition

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

Term

Growth-Share Matrix

Definition

A portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.

Term

Stars

Definition

high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.

Term

Cash Cows

Definition

low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.

Term

Question Marks

Definition

low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

Term

Dogs

Definition

Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

Term

Product/market expansion grid

Definition

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

Term

Market Penetration

Definition

A strategy for company growth by increasing sales of current products to current market segments without changing the product.

Term

Market Development

Definition

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

Term

Product Development

Definition

A strategy for company growth by offering modified or new products to current market segments.

Term

Diversification

Definition

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

Term

Downsizing

Definition

Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.

Term

Value Chain

Definition

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

Term

Value Delivery Network

Definition

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

Term

Marketing Strategy

Definition

The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.

Term

Market Segmentation

Definition

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

Term

Market Segment

Definition

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

Term

Marketing Targeting

Definition

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

Term

Positioning

Definition

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

Term

Differentiation

Definition

Actually differentiating the market offering to create superior customer value.

Term

Marketing Mix

Definition

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.

Term

Product

Definition

means the goods-and-services combination the company offers to the target market.

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Variety, quality, design, features, brand name, packaging, services.

Term

Price

Definition

the amount of money customers must pay to obtain the product.

List price, discounts, allowances, payment period, credit terms

Term

Place

Definition

includes company activities that make the product available to target consumers.

(Video) Chapter 2: Company and Marketing Strategy, by Dr Yasir Rashid, Free Course Kotler [English]

channels, coverage, assortments, locations, inventory, transportation, logistics

Term

Promotion

Definition

means activities that communicate the merits of the product and persuade target customers to buy it.

Advertising, personal selling, sales promotion, public relations.

Term

The Four C's of Marketing Mix

Definition

Customer Solution

Customer Cost

Convenience

Communication

Term

SWOT Analysis

Definition

An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T).

Term

Stregths

Definition

Internal capabilities that may help a company reach its objectives.

Term

Weaknesses

Definition

Internal limitations that may interfere with a company's ability to achieve its objectives.

Term

Opportunites

Definition

External factors that the company may be able to exploit to its advantage.

Term

Threats

Definition

Current and emerging external factors that may challenge the company's performance.

Term

Marketing Implementation

Definition

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.

Term

Marketing Control

Definition

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

Term

Return on Marketing Investment (Marketing ROI)

Definition

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

Term

Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment?

Definition

strategic planning

Term

When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________.

Definition

strategic planning

Term

Which of the following is the first step in strategic planning?

Definition

define the company mission

Term

Which of the following is NOT a step in the strategic planning process?

Definition

evaluating all members of the value chain

Term

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?

Definition

a mission statement

Term

________ should be market oriented and defined in terms of ________.

Definition

Mission statements; customers' needs

Term

All of the following are accurate guidelines for a company's mission statement EXCEPT which one?

Definition

A mission statement should be narrow.

Term

A company's mission statement serves as a statement of ________.

Definition

purpose

Term

Which of the following is NOT a market-oriented business definition?

Definition

"to sell tools and home repair and improvement items"

Term

All of the following are examples of product-oriented mission statements, EXCEPT which one?

Definition

"We sell lifestyle and self-expression; success and status; memories, hopes, and dreams."

Term

Which of the following is the principle objective of a market-oriented mission statement?

Definition

to satisfy basic customer needs

Term

Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company.

Definition

supporting objectives

Term

The collection of businesses and products that make up a company is called its ________.

Definition

business portfolio

Term

Which of the following can be a company division, a product line within a division, or sometimes a single product or brand?

Definition

an SBU

Term

After management has identified the key businesses making up its company, what is the next step in portfolio analysis?

Definition

assessing the attractiveness of its SBUs

Term

The best known product portfolio planning method was developed by ________.

Definition

the Boston Consulting Group

Term

Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.

Definition

market or industry attractiveness; strength of the SBU's position

Term

In the Boston Consulting Group approach, ________ provides a measure of market attractiveness.

Definition

market growth rate

Term

In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.

Definition

) relative market share

Term

The BCG growth-share matrix classifies four types off SBUs. They are ________ , ________ , ________ , and ________.

Definition

stars; cash cows; question marks; dogs

Term

In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________.

Definition

stars; cash cows

Term

________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

Definition

Cash cows

Term

In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars.

Definition

cash cows

Term

The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.

Definition

harvesting; divesting

Term

Which of the following does NOT accurately reflect a problem with the BCG matrix approach?

(Video) Principles of Marketing Chapter 2:Marketing Strategy Partnering to Build Customer Relationships

Definition

It focuses on planning for the future.

Term

Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________.

Definition

decentralized

Term

To increase its U.S. market share, Starbucks has stepped up efforts in the areas of product availability and promotion. These are examples of broad ________.

Definition

strategies for growth

Term

Which department in a company carries the primary responsibility for achieving profitable growth?

Definition

marketing

Term

Which of the following is a useful tool for identifying growth opportunities?

Definition

the product/market expansion grid

Term

Making more sales to current customers without changing a firm's products is ________.

Definition

market penetration

Term

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________.

Definition

) market penetration

Term

While a valuable planning tool, a problem with using the BCG matrix centers is that it focuses on ________

Definition

the present instead of the future

Term

A common practice among marketers is to identify and develop new markets for their existing products. This practice is called ________.

Definition

market development

Term

Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station. This represents which strategy for growth?

Definition

diversification

Term

Which of the following entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy?

Definition

downsizing

Term

Which of the following is NOT a reason that a firm might want to abandon products or markets?

Definition

The economic environment is showing signs of recovery.

Term

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.

Definition

value chain

Term

Jack Welch, CEO at General Electric, said that "Companies can't give job security, only ________ can."

Definition

customers

Term

Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________.

Definition

value delivery network

Term

Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships?

Definition

marketing strategy

Term

Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting. ________ should appear in the center of her diagram depicting marketing strategies and the marketing mix.

Definition

Customer value and relationships

Term

A sound marketing strategy begins with which of the following?

Definition

customer analysis

Term

Your firm is attempting to divide up the total market to determine the best segments it can serve. Which is the correct order of doing so?

Definition

market segmentation, target marketing, market positioning

Term

The process of customer-driven marketing involves which of the following?

Definition

market segmentation; target marketing; differentiation; positioning

Term

Which of the following is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors?

Definition

market segmentation

Term

Your new employer has asked you, as a new marketing graduate, to develop a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to develop a(n) ________.

Definition

market segment

Term

Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter?

Definition

market targeting

Term

Which of the following is the place a product occupies in the consumer's mind relative to competition?

Definition

position

Term

Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value.

Definition

differentiating

Term

Which of the four Ps describes the goods-and-services combination the company offers to the target market?

Definition

product

Term

In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.

Definition

product

Term

Today the four Ps are compared to the four Cs. Product and place are called ________ and ________, respectively.

Definition

customer solution; convenience

Term

) In the marketing management functions, an SWOT analysis should ________ a marketing plan.

Definition

precede

Term

In a basic SWOT analysis the "T" stands for ________.

Definition

threats

Term

In a basic SWOT analysis, the "S" stands for ________.

Definition

strengths

Term

In SWOT analysis, which of the following would be considered a strength?

Definition

internal resources

Term

In SWOT analysis, which of the following refers to factors in the external environment?

Definition

opportunities

Term

The main section of the marketing plan presents a detailed ________ analysis of the current marketing situation.

Definition

SWOT

Term

A marketing plan begins with an executive summary, which quickly overviews goals and ________.

Definition

recommendations

Term

According to the textbook, your boss is most likely referring to ________ when she mentions "doing things right."

Definition

implementation

Term

IBM has its sales and marketing people assigned to markets in specific countries, regions, and districts. This is an example of which type of marketing organization?

Definition

geographic

Term

Which of the following is the most common approach to marketing organization?

Definition

functional

Term

Berman Electric, a chain of 18 appliance stores, has a marketing organization in which specialists head different marketing activities. What is this type of organization called?

Definition

functional

Term

Modern marketing departments are arranged in the following ways, EXCEPT which one?

Definition

strategic management organization

Term

The ________ organizational format was first used by Procter and Gamble in 1929.

Definition

product management

Term

The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments.

Definition

market management

Term

An increasingly large number of firms are changing their organizational focus from ________ to ________.

(Video) Chapter 2: Principle of Marketing ( Company & Marketing Strategy ) Brief Explanation (Urdu/Hindi)

Definition

brand management; customer management

Term

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.

Definition

marketing control

Term

The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________.

Definition

measuring performance; taking corrective action

Term

Which of the following is NOT a step in the marketing control process?

Definition

defining the mission

Term

Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________.

Definition

operating control

Term

Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities?

Definition

strategic control

Term

Which of the following is a comprehensive and systematic analysis of a company's environment, objectives, strategies, and activities that is conducted by an outside and objective party?

Definition

) a marketing audit

Term

Which of the following measures the profits generated by investments in marketing activities?

Definition

marketing ROI

Term

Which of the following would NOT be useful in determining marketing ROI?

Definition

SWOT analysis

Term

Mission statements should be realistic and general in nature.
t/f

Definition

false

Term

ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.
t/f

Definition

true

Term

Mission statements should both emphasize the company's strengths in the marketplace and be motivating.
t/f

Definition

true

Term

At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented business definition.
t/f

Definition

false

Term

"At Nike, we sell shoes" is a market-oriented business definition.
t/f

Definition

false

Term

A firm's mission statement should be the basis for both its business and marketing objectives.
t/f

Definition

false

Term

The major activity in strategic planning is strategic business unit planning, whereby management evaluates the products and businesses making up the company.
t/f

Definition

false

Term

When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.
t/f

Definition

false

Term

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.
t/f

Definition

true

Term

In the BCG matrix, "dogs" are low-growth businesses and products that do not generate enough cash to maintain themselves.
t/f

Definition

false

Term

The growth strategy of diversification involves offering modified or new products to current markets.
t/f

Definition

false

Term

When an organization identifies and develops new markets for its current products and services, it is engaged in market development.
t/f

Definition

true

Term

When a firm finds products or businesses that no longer fit its overall strategy, it must carefully milk, harvest, or better develop them.
t/f

Definition

false

Term

In today's marketplace, competition increasingly takes place between entire value delivery networks rather than between individual competitors.
t/f

Definition

true

Term

To improve its value delivery network, a company needs to examine the value chains of its suppliers and distributors.
t/f

Definition

true

Term

Mandros International Foods evaluates each market segment's attractiveness and selects one or more segments to enter when considering adding new lines of imported foods. Mandros is engaged in selective marketing.
t/f

Definition

false

Term

The image of a product in the minds of consumers is called market segmentation.
t/f

Definition

false

Term

A market segment consists of consumers who respond in different ways to a given set of marketing efforts.
t/f

Definition

false

Term

Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.
t/f

Definition

false

Term

When a company positions its product, it should first identify possible customer value differences within a market segment that could be the basis of a competitive advantage for the product.
t/f

Definition

true

Term

The marketing mix consists of product, price, place, positioning, and promotion.
t/f

Definition

false

Term

Guided by marketing strategy, the company designs a marketing mix made up of factors under its control: product, price, place, and promotion.
t/f

Definition

true

Term

One valid criticism of the four Ps concept is that services are not considered.
t/f

Definition

false

Term

The four Ps concept takes the seller's view of the market.
t/f

Definition

false

Term

The four marketing management functions are analysis, planning, implementation, and control.
t/f

Definition

false

Term

Define strategic planning. Discuss the steps involved.

Definition

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its marketing opportunities is called strategic planning. At the outset, beginning at the corporate level, each company must define its overall purpose and mission. What is our business? Who is the customer? What do our customers value? Answers to these questions are crucial in writing a clear mission statement. Mission statements need to be carefully defined in terms of customer needs. Missions should be realistic, motivating, and fit the market environment. Missions then lead to setting business and marketing objectives/goals in the planning process. This is followed by decisions regarding what portfolio of businesses and products is best for the company and how much support to give each one. Next, each business and product develops detailed marketing and other functional strategies. In this step, plans are drawn at the business unit, product, and market levels in support of company wide plans.

Term

What is business portfolio planning? Discuss how a company might use the Boston Consulting Group's product portfolio analysis method.

Definition

A business portfolio is the collection of businesses and products that make up a company. Business portfolio planning entails two steps. First, there is an analysis of the company's current business portfolio, followed by decisions about what businesses should receive more, less, or no investment. Second, planners must shape the future portfolio by developing strategies for growth and/or downsizing. The Boston Consulting Group matrix evaluates SBUs on two important dimensions: the attractiveness of the SBU's market or industry growth rate and the strength of the SBU's position or relative market share in that market or industry. The growth-share matrix defines four types of SBUs: stars, cash cows, question marks, and dogs. Once each SBU has been defined, a company can determine what role each will play in the firm's future, using strategies of building, holding, harvesting, or divesting each SBU.

Term

Describe some of the problems with matrix approaches.

Definition

: The BCG and other portfolio planning approaches can be difficult to execute, time consuming, and also costly to implement. Defining SBUs and the measurement of relative market share and growth can be a difficult task as well. A serious flaw with these approaches is that, while they are helpful for classifying current businesses, they offer little or no advice for future planning.

Term

The BCG is a useful approach to evaluate current businesses. Describe a device that a firm could use to identify future growth opportunities.

Definition

The product/market expansion grid is a useful device for identifying growth opportunities in the future. There are four strategies available to companies: market penetration, market development, product development, and diversification. Market penetration entails making more sales to current customers without changing products. Market development involves identifying and developing new markets for a company's products. New markets include demographic groups and geographic regions, among others. Companies can also consider product development, offering modified or new products to current markets. Diversifying companies might consider acquiring or starting new businesses unrelated to their core competencies. However, diversifying too broadly can be detrimental in the long run.

Term

What does the term "value-delivery network" mean? Explain.

Definition

For decades, marketers have traditionally created value to satisfy customer needs and wants. Today, the manufacturer or retailer needs to look beyond its own value chain and into the value chains of suppliers and distributors to create value throughout the entire supply chain. More companies are partnering with other members of the supply chain to improve the performance of the customer value-delivery network. In fact, today competition takes place between entire value delivery networks instead of between individual competitors.

Term

Define marketing strategy. Discuss the steps in formulating marketing strategy.

Definition

The marketing logic by which a company hopes to achieve profitable relationships is called its marketing strategy. Marketing strategy formulation entails four specific steps: market segmentation, market targeting, differentiation, and positioning. The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior is called market segmentation. Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain that value over time. Effective positioning begins with actually differentiating the company's marketing offer so that it gives consumers greater value. Positioning is defined as creating a distinct image of a product in the eyes of target consumers. A product's positioning should take advantage of a competitive advantage within the market target.

Term

Explain why, according to the authors of your text, the four Ps concept of the marketing mix takes a seller's view of the market, not the buyer's view. How should marketers consider the buyer's view?

Definition

In today's day and age of customer relationship marketing, the four Ps can be described as the four Cs from the customer's point of view. In lieu of product, there is customer solution; that is, customers buy solutions to their problems or look for value in products. Customers are more interested in the total costs of obtaining, using, and disposing of a product. That is, customer cost replaces price in customer relationships. The place element of the marketing mix focuses on convenience. Convenience in availability is the central focus of customers. Finally, customers and marketers want two-way communication. Marketers should use the four Cs as a base for the four Ps of their marketing mix.

Term

Define marketing planning. Briefly outline the major steps in a marketing plan.

Definition

Marketing planning involves deciding on marketing strategies that will help the company achieve its overall strategic objectives. A detailed marketing plan is needed at the business, product, or brand level. An executive summary is the first step in the plan. It contains a brief summary of the main goals and recommendations of the plan for management review. The main section of the plan presents a detailed SWOT analysis of the current marketing situation, along with potential threats and opportunities. The plan then states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them. In addition, action programs for implementing the marketing strategy along with the details of a supporting marketing budget are presented. The final section outlines the controls used to monitor progress and corrective action.

Term

Marketing departments are organized in several ways. Discuss the most common forms of marketing organizations.

(Video) Chapter 2: Company and Marketing Strategy, Free Course Kotler and Armstrong [Urdu]

Definition

Some common forms of marketing department organization include functional organization, geographical organization, product management organization and market management organization. Under a functional department organization, a functional specialist, such as a sales manager, advertising manager, or market research manager, is responsible for all marketing activities. Under a geographic organization, sales and marketing people are assigned to specific countries, regions, and districts. Product management organization first appeared at P&G in 1929. Under this approach, a product manager develops and implements a complete strategy and marketing program for a specific product or brand. Under a market or customer management organization, the company is organized around the needs of specific customer segments. In firms that use this organization, one product line is sold to many different types of markets and customers that have different needs and preferences. Finally, large companies that produce many products sold in many geographic areas typically use some combination of these organizational forms.

Term

Briefly discuss how marketers measure return on marketing investment, explaining why this figure can be difficult to assess.

Definition

Marketing ROI (return on investment) is the net return from a marketing investment divided by the costs of the marketing investment. In other words, ROI is a measure of the profits generated by investments in a marketing activity. Marketing ROI can be difficult to assess because the benefits of marketing are not always easily translated in dollar amounts. However, marketing ROI can be assessed in terms of brand awareness, sales, or market share. Some companies are now using marketing dashboards, which are single displays showing several sets of marketing performance measures. And beyond standard performance measures, many marketers are using customer-centered measures such as customer acquisition, retention, and lifetime value.

Term

Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities with which it is presented. To best take advantage of its constantly changing environment, Starbucks should do which of the following?

Definition

conduct strategic planning

Term

Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment."

Definition

mission

Term

The current mission statement of the Girl Scouts of America reads "where girls grow strong." The organization's former mission statement had read "to prepare young girls for motherhood and wifely duties." This change reflects the guideline that mission statements should be ________.

Definition

market-oriented

Term

A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the 21st century, Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs." The marketing manager is referring to Ford's ________.

Definition

mission statement

Term

When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.

Definition

broadly

Term

Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________.

Definition

strategic business unit (SBU)

Term

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers would be most likely to decide which of the following?

Definition

use money from a cash cow to promote the pharmaceuticals division

Term

Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is pursuing ________ as a growth strategy.

Definition

geographic market development

Term

Fence Patrol has developed an entirely new mounting system for chain link fences. Although they are a local company, through the acquisition of a distributor they now have the ability to market their products nationwide. Fence Patrol is most likely to be following a ________ strategy.

Definition

diversification

Term

The Bank of New York bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston. The Bank of New York is pursuing a ________.

Definition

diversification strategy

Term

Acme, Inc., has slightly modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy.

Definition

market development

Term

Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for ________.

Definition

market development

Term

For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.

Definition

market segment

Term

Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore. Which of the following best describes Favorite Memories?

Definition

market nicher

Term

Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's ________.

Definition

market positioning

Term

Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed?

Definition

a SWOT analysis

Term

Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis?

Definition

A company is more able to change a weakness than a threat.

Term

Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into groups headed by a sales manager, an advertsing manager, and a customer-service manager. What type of organization is this?

Definition

functional

Term

Juanita Castro is looking at whether her company's strategies are well matched to its opportunities. Juanita is utilizing ________.

Definition

strategic control

Term

As Starbucks continues to grow, it is faced with myriad challenges and surprises during the implementation of marketing plans. Hence, the marketing department must practice constant ________.

Definition

marketing control

Term

Refer to the scenario below to answer the following questions.

Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful! There is nothing else like Fun-Spot Fun Park in the area. We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added. We provide a ‘total package' of entertainment. Plus, we try to change our rides and various attractions from time to time."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like it says on the entrance to the park, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."

Definition

Term

Fun-Spot's mission is ________.

Definition

) market-oriented

Term

Into which quadrant of the BCG matrix does Fun-Spot fall?

Definition

star

Term

Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?

Definition

market penetration

Term

Gail and Ron strive to provide new offerings and entertainment options for their visitors. What type of strategy is this?

Definition

product development

Term

Which of the following would be classified as an opportunity in a SWOT analysis of Fun Spot?

Definition

A new luxury hotel is being constructed in the area, with the aim of luring more high-spending families on vacation.

Term

Why should a mission statement be market oriented instead of product or technology oriented?

Definition

A market-oriented mission statement defines the business in terms of customer needs; products and technologies become outdated, but basic market needs may last forever.

Term

Why should a mission statement be "motivating" instead of stated in terms of sales or profits?

Definition

Sales and profits are only a reward for undertaking a useful activity; a company's employees will be more dedicated to the company's mission if they feel that their work is significant.

Term

What is a strategic business unit (SBU) and how is it involved in a business portfolio analysis?

Definition

An SBU is a key part of a company–whether a product, product line, department, or an entire division–that has its own mission and objectives. Identifying and analyzing a company's SBUs are the first two steps in business portfolio analysis.

Term

Into what BCG quadrant does a high-share, high-growth SBU fall?

Definition

It falls into the "star" category.

Term

What type of strategy should a company use to manage its cash cows?

Definition

Because a cash cow generates cash without much investment, a company should use the profits to support other SBUs.

Term

How might the BCG matrix represent a life cycle?

Definition

Many SBUs start out as question marks, then move into the star category if they succeed; stars eventually become cash cows, and then perhaps, dogs.

Term

How might Party Planning Paradise, a company that sells a wide range of party supplies for all occasions, implement a market development strategy?

Definition

Party Planning Paradise might attempt to identify and develop new markets for its current products, looking for different demographic markets and geographical markets that might have a need its products would satisfy.

Term

According to the product/market expansion grid, what strategy would a fast-food hamburger restaurant follow if it offered a salad bar option during lunch hours?

Definition

In this scenario, the restaurant would be following a product development strategy.

Term

Into what quadrant of the product/market expansion grid would a "new and improved" product fall?

Definition

The "new and improved" product would fall into the product development quadrant.

Term

How are partner relationship management and the value chain related?

Definition

Marketers must work closely and coordinate activities with partners in other company departments to form an effective value chain, with each department executing value-creating activities to design, produce, market, deliver, and support the company's products.

Term

Explain how a marketer of baking soda may attempt to attract more than one market segment.

Definition

Some consumers buy baking soda as a baking ingredient and some consumers buy baking soda to use as a deodorizer, for example. The marketer will focus on both distinct uses in the marketing mix, such as how the product is promoted.

Term

) How might a marketer of pens alter the "product" portion of the marketing mix when targeting female college students versus male college students?

Definition

The marketer may use feminine colors and a spiral-flower stripe, for example, when marketing its pens to the females; when targeting males, more neutral colors might be used

Term

What role does the marketing mix play in positioning?

Definition

The marketing mix components of product, price, place, and promotion are the tools that a company can use to differentiate its products from competitors' and to achieve strong positioning in a target market.

Term

Why is marketing analysis such an important part of marketing management?

Definition

This function allows the marketer to analyze internal strengths and weaknesses as well as environmental opportunities and threats which, in turn, allows the marketer to match the company's strengths to opportunities to pursue. From this starting point, the market can continue with planning, implementation, and control.

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Term

Why are many marketers today using customer-centered measures of marketing ROI?

Definition

Companies are looking at marketing expenditures as investments in profitable customer relationships, with the goal of increasing individual customer lifetime values and overall customer equity.

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