Marketing 300 CH 2 – Flashcards
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strategic planning
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the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities
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strategic business unit (SBU)
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a subgroup of a single business or collection of related businesses within the larger organization
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market penetration
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a marketing strategy that tries to increase market share among existing customers
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market development
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a marketing strategy that entails attracting new customers to existing products
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product development
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a marketing strategy that entails the creation of new products for present markets
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diversification
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a strategy of increasing sales by introducing new products into new markets
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portfolio matrix
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a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
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star
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in the portfolio matrix, a business unit that is a fast-growing market leader
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cash cow
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in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
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problem child (question mark)
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in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
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dog
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in the portfolio matrix, a business unit that has low growth potential and a small market share
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planning
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the process of anticipating future events and determining strategies to achieve organizational objectives in the future
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marketing planning
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designing activities relating to marketing objectives and the changing marketing environment
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marketing plan
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a written document that acts as a guidebook of marketing activities for the marketing manager
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mission statement
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a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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marketing myopia
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defining a business in terms of goods and services rather than in terms of the benefits customers seek
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SWOT analysis
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identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
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environmental scanning
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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
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competitive advantage
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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
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cost competitive advantage
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being the low-cost competitor in an industry while maintaining satisfactory profit margins
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experience curves
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curves that show costs declining at a predictable rate as experience with a product increases
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product/service differentiation competitive advantage
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the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
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niche competitive advantage
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the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
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sustainable competitive advantage
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an advantage that cannot be copied by the competition
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marketing objective
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a statement of what is to be accomplished through marketing activities
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marketing strategy
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the 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
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market opportunity analysis (MOA)
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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
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marketing mix (four Ps)
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a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
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implementation
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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
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evaluation
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gauging the extent to which the marketing objectives have been achieved during the specified time period
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control
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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
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marketing audit
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a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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_____ is the most critical element in successful strategic planning
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Management commitment
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Which of the following statements is true of strategic business units (SBUs)?
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They require their own strategies and funding.
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Laelle Cosmetics is adopting a diversification strategy as defined by Ansoff's strategic opportunity matrix. In this scenario, Laella Cosmetics will:
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introduce new cosmetic products in its neighboring country.
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According to Ansoff's strategic opportunity matrix, which of the following companies is using market development strategy?
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Magnira Corp., an electronic gadget company in Sparanthea, opens a new facility in Lumberne to sell its products in the country.
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The strategy of getting rid of strategic business units (SBUs) with low shares of low-growth markets is known as _____.
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divesting
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Peshler Electricals manufactures and sells only high-end shortwave radios and products for serious radio enthusiasts. In this case, which of the following competitive advantages does Peshler Electricals have?
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Niche competitive advantage
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Which of the following companies is most likely to have a product/service differentiation competitive advantage?
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Harlose Inc., an electronic appliances store, is famous for its after-purchase customer support.
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Which of the following companies is most likely to have a product/service differentiation competitive advantage?
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Harlose Inc., an electronic appliances store, is famous for its after-purchase customer support.
