Marketing 3310 Chapter 3 Test 1 – Flashcards
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Name the 3 levels of business planning
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Strategic Planning Functional Planning Operational Planning
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the managerial process that matches firms resources and capabilities to market opportunities
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Strategic Planning
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Top management defines firm's purpose and sets objectives; many large firms have separate strategic business units
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Strategic planning
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Planning done by top functional level management
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Functional planning
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Market planning includes: -Situation analysis -Broad 3-5 yr plan to support the strategic plan -Annual plan
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Functional Planning
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First line managers focus on day-to-day execution of functional plan
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operational plan
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For marketers, this level of planning typically includes: -annual/semi-annual/quarterly action plans to guide marketing plan implementation -Use of marketing metrics to monitor performance
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Operational Plan
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1. Define the mission 2. evaluate the internal and external environment 3. set organizational or SBU objectives 4. establish the business portfolio 5. develop growth strategies
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Steps in Strategic Planning
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1. Perform a situational analysis 2. Set marketing objectives 3. Develop marketing strategies 4. Implement and control the marketing plan
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Steps in Functional Planning
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1. Develop action plans to implement the marketing plan 2. use marketing metrics to monitor how the plan is working
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Steps in Operational Planning
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1st level of planning
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Strategic Planning
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2nd level of planning
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functional planning
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Third level planning
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operational planning
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the functional planning marketers do. This planning typically includes both a broad 3-5 year plan and a detailed annual plan for the coming year
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market planning
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a formal document that describes the organization's overall purpose and what it intends to achieve in terms of its customers, products, and resources
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Mission statement
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Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
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Strategic Business Unit
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SWOT stands for
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Strengths Weaknesses Objectives Threats
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Name the 4 categories of BCG matrix
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Cash cows Question marks Dogs Stars
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SBU's with products that have dominant market share in high growth areas
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Stars
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SBU's with products that have a dominant market share in a low-growth potential market
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Cash Cows
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SBU's with low market shares in fast-growth markets
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Question Marks
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SBU's with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly
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Dogs
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A tool management uses to assess the potential of a firm's business portfolio; helps to decide which of the current SBU's should receive more (or less) of the firm's resources and which are most consistent with the firm's overall mission
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Portfolio Analysis
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a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
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BCG Matrix
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Important distinction between strategic planning and market planning
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marketing professionals go
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Quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise
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Return on Marketing Investment
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Return on Marketing Investment Formula
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Revenue from marketing investment DIVIDED BY cost of marketing program EQUALS return on marketing investment
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the revenue of profit margin generated by investment in a specific marketing campaign or program divided by the cost of that program at a given risk level
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Return on marketing investment
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Plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines to accomplish the tasks
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Operational Plans
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______________ _______________ is the managerial decision process that matches the​ firm's resources​ (such as its financial assets and​ workforce) and capabilities​ (the things it is able to do well because of its expertise and​ experience) to its market opportunities for​ long-term growth.
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Strategic planning
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How do managers match resources and capabilities to make​ long-term growth​ decisions? A. Operational planning B. Integrated activity C. Environmental analysis D. Strategic planning E. Functional planning
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Strategic Planning
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For planning to benefit the entire​ organization, it must support the​ organization's mission and objectives as part of​ a(n) _____. A. integrated activity B. strategic business unit C. business plan Your answer is not correct. D. environmental analysis E. marketing plan
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Integrated Activity
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A(n) ________ plan is a document that describes the marketing​ environment, outlines the marketing objectives and​ strategy, and identifies who will be responsible for carrying out each part of the marketing strategy. A. business B. functional C. operational D. marketing E. strategic
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Marketing
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_____________ _____________refers to a managerial decision process that matches an​ organization's resources and capabilities to its market opportunities for​ long-term growth and survival. A. Operational planning B. Business planning C. Strategic planning D. Functional planning E. Strategic business unit​ (SBU)
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Strategic Planning
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____________ _______________ is the second level of planning that involves developing detailed plans for strategies and tactics for the short​ term, supporting an​ organization's long-term strategic plan. A. Strategic planning B. Business planning C. Strategic business units​ (SBUs) D. Operational planning E. Functional planning
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Functional Planning
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According to the​ text, all​ ________ is an integrated activity. A. business planning B. operational planning C. functional planning D. strategic planning E. domestic trade
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business planning
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A _________________ analysis allows managers to focus clearly on the meaningful strengths​ (S) and weaknesses​ (W) in the​ firm's internal environment and opportunities​ (O) and threats​ (T) coming from outside the firm​ (the external​ environment). A SWOT analysis enables a firm to develop strategies that make use of what the firm does best in seizing opportunities for growth while at the same time avoiding external threats that might hurt the​ firm's sales and profits.
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SWOT
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Which of the following is used to allow firms to avoid external issues that might hurt the firm while seizing opportunities for​ growth? A. Business review B. Situation analysis C. Review of human and intellectual capital D. SWOT analysis E. Business portfolio
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SWOT analysis
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Employee skills and their​ knowledge, skills, and intellect are considered to be​ _____. A. specific and measurable traits B. controllable risks C. human and intellectual capital D. aspects of the external environment E. the basis for the mission statement
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human and intellectual capital
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In step 2 of the strategic planning​ process, a firm conducts a​ ________, which enables the organization to develop strategies that make use of what the firm does best in seizing opportunities for​ growth, while at the same time avoiding external threats that might hurt the​ firm's sales and profits. A. portfolio analysis B. SWOT analysis C. product development strategy D. situation analysis E. BCG growth dash -market share matrix
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SWOT analysis
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In the first step of the strategic planning​ process, a firm creates a​ ________, which is a formal statement in an​ organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its​ customers, products, and resources. A. mission statement B. situation analysis C. SWOT analysis D. return on marketing investment E. business plan
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mission statement
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If Dannon were to aggressively promote its Activia yogurt with probiotics in an effort to increase sales of existing products to existing markets such as current​ users, nonusers, and users of competing brands within a​ market, the company would be using a​ ________ strategy. A. market development B. product development C. diversification D. market penetration E. control
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Market Penetration
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A _____________ ______________ strategy is a growth strategy that focuses on selling new products in existing markets.
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product development
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A _____________ ______________ strategy is a growth strategy that introduces existing products to new markets
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market development
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According to the​ text, which of the following is NOT a market growth​ strategy? A. Sustainable development B. Diversification C. Product development D. Market penetration E. Market development
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Sustainable development
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Which of the following is used to determine how marketing contributes to the​ firm's financial​ success? A. Control process planning B. Sustainability C. Outcome metrics D. Activity metrics E. Return on marketing investment
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Return on Marketing Investment
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Which of the following is used by organizations to carry out the​ day-to-day activities of the marketing​ plan? A. Marketing metrics B. Leading indicators C. Market planning templates D. ROMIs E. Operational plans
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Operational Plans
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________ is step 4 of the market planning process. At this​ stage, a firm assesses the potential demand for its products long dash —and decides whether it is able to create a sustainable competitive advantage in the marketplace. A. Setting marketing objectives B. Implementing and controlling the marketing plan C. Selecting a target market and the best marketing mix strategy D. Performing a situation analysis E. Developing marketing strategies
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Selecting a target market and the best marketing mix strategy
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In step ___ of the market planning​ process, a firm conducts a situation analysis of the marketing environment.
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1
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In step ____ of the market planning​ process, marketing managers decide which markets to target and actually develop the marketing mix strategies to support how they want to position the product in the market.
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3
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In step ___ of the market planning​ process, a firm sets marketing objectives specific to the​ firm's brands,​ sizes, product​ features, and other elements related to the marketing mix.
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2
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A company on​ ________ of the market planning process is focused on implementing the marketing plan and setting the controls to monitor the progress of the plan compared to the marketing objectives. A. step 3 B. step 1 C. step 4 D. step 5 E. step 2
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step 5
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Return on marketing investment​ (ROMI) is best defined as​ ________. A. the monetary value of all the finished goods and services produced within a​ country's borders in a specific time period B. what must be done in order to accomplish the intended purpose of the action plan C. detailed directions for the specific activities to be carried​ out, who will be responsible for​ them, and time lines for accomplishing the tasks D. the revenue or profit margin generated by investment in a specific marketing campaign or program divided by the cost of that program at a given risk level E. the marketing programs that support the various marketing objectives and strategies within the marketing plan
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the revenue or profit margin generated by investment in a specific marketing campaign or program divided by the cost of that program at a given risk level
