Marketing Final Exam, Chp. 22 – Flashcards
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Horizontal
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Which axis are the firm's annual marketing efforts, such as sales and advertising, plotted on?
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When the annual marketing efforts increase, so does the resulting annual sales revenue
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What is plotted on the vertical line?
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marginal revenue - marginal cost
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What is the formula for maximizing incremental profit?
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Resource allocation
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General Mills not only allocated its available resources efficiently in developing its broad portfolio of product lines ans brands, but also allocated its marketing efforts and promotional dollars efficiently too is an example of what?
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Share points
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When business do extensive analysis they use what as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm? This allows it to seek answers "how much is it worth to us to try to increase our market share by another 1 (or 2, 5, 10) percentage point"
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Marketing actions
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Company resources are allocated effectively in the strategic marketing process by converting marketing information into what?
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Marketing plans (or programs) that define goals (with pertinent marketing metrics) and the amrketing mix strategies to achieve them
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What is the output report of the Planning Phase?
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Action memos that tell 1) who is 2) to do what 3) by when
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What is the output report of the Implementation Phase?
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Corrective action memos, triggered by comparing results with goals, often using the firm's marketing metrics and dashboards
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What is the output report of the Evaluation Phase?
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1. Vital importance of metrics in marketing planning 2. Variety of marketing plans 3. Marketing planning frameworks that have proven useful 4. Some key marketing planning and strategy lessons
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What are the 4 aspects in the planning phase of the strategic marketing process?
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"where the organization is going"
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The quantitative goals are what?
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"whether it is really getting there"
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The quantitative marketing metrics are what?
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Exercise in goal setting and emphasis on innovation
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What is the key to the vital importance of metrics in marketing planning?
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Output metric
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What kind of metric is used when revenue growth is from new products or services?
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Input metric, because there is no assurance the idea will actually convert into sales revenues
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The number of ideas or concepts in the pipeline is what kind of innovation metric?
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Input metric
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Which innovation metric is easier to measure?
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Input metric
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What kind of metric is used when measuring the number of R&D projects?
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Output
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What kind of metric is used when measuring customer satisfaction with new products of services?
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The direction for the marketing activities of an organization
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The planning phase of the strategic marketing process usually results in a marketing plan that sets what?
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1. Long-range marketing plans - cover marketing activities from 2-5 years 2. Annual marketing plans - deal with marketing goals and strategies for a product, product line, or entire firm for a single year.
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What are the 2 varieties of marketing plans?
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1. Porter's generic business strategy 2. Synergy analysis
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What are the 2 techniques that help corporate and marketing executives make important resource allocation decisions?
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Generic business strategy
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What is adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage?
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1. Cost leadership strategy - focuses on reducing expenses and in turn, lowers product prices while targeting a broad array of segments. Campbells soup uses this strategy 2. Differentiation strategy - requires products to have significant points of difference in product offerings, brand image, higher quality to charge a higher price.General Mills uses this strategy. 3. Cost focus strategy - involves controlling expenses and in turn lowering product prices targeted at a narrow range of market segments. IKEA uses this strategy. 4. Differentiation focus strategy - requires products to have significant points of difference to target one or only a few market segments. Chobani uses this strategy.
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There are 4 generic business strategies. What are they?
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Cost leadership and differentiation
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Which 2 generic business strategies have a broad target competitive scope?
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Cost focus and differentiation focus strategy
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Which 2 generic business strategies have a narrow target competitive scope?
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Synergy analysis
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What seeks market-product opportunities by finding the optimum balance between marketing efficiencies versus r&D manufacturing efficiencies?
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Marketing synergy and R&D-manufacturing synergy
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What are the 2 kinds of synergy that are critical in developing corporate and marketing strategies?
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Ford. In 2007 they offered 27 different vehicle platforms and concluded the world didn't need that. They decided in 2012 they would only have 15 different vehicle platforms that will sell worldwide.
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Often the search for marketing synergy is within the company itself. What company did just that for better quality control, lower retail prices and happier customers?
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1. Market-produce concentration 2. Market specialization 3.Product specializiation 4. Selective specialization 5. Full coverage
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What are the 5 combinations of R&D manufacturing synergies?
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By having a complete product line in all regions
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The Marketing synergy strategy gains how?
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By having access to new markets that can provide production efficiencies through producing larger volumes of its existing products.
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The R&D-manufacturing strategy gains how?
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1. Set measurable, achievable goals 2. Use a base of facts and valid assumptions 3. Use simple, but clear and specific, plans 4. Have complete and feasible plans 5. Make plans controllable and flexible 6. Find the right person to implement the plans 7. Work toward a consensus-building
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In the planning phase of the strategic marketing process, what are the guidelines for developing effective marketing plans?
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JD Power & Associates
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Which company is one of the best known marketing information companies and now serves not only the auto industry, but also health care, telecommunications, insurance, etc which does customer satisfaction studies?
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1. Plans may be based on poor assumptions. Western Union failed because it didn't reflect the impact of deregulation, etc 2. Lost sight of customers needs. Papa Johns slogan "better ingredients, better pizza" speaks to the customers needs when Pizza Hut does not 3. Too much spend on data collection and writing plans that are too complex to implement. 4. Managers not feeling a sense of ownership in implementing plans.
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What are some of the problems that emerge in a firm's strategic marketing process?
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1. Have a patent or patent pending 2. Be fully developed and be on the market somewhere in the world 3. Fit into big G's product lines
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If you have a great idea for a new product General Mills might use what 3 things to do they require?
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1. Value-based planning - value is created when the financial return of a strategic activity exceeds the cost of the resources allocated to the activity 2. Value-driven strategies - incorporate concerns for ethics, integrity, employee health and safety, environmental safeguards with more common corporate values such as growth, profitability, customer service and quality
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What are the 2 important trends that are likely to influence the strategic marketing process in the future?
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For success, both need to be good.
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Is planning or implementation the problem?
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General Electric's CEO Jack Welch
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Which business is being used as a benchmark in regards to an effective marketing implementation?
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1. Communicate goals and means of achieving them - all of Papa John's employees are clear on the firms goals: to deliver better pizzas using better ingredients. Core value #4 is PAPA or "People are Priority #1, always" 2. Have a responsible program champion willing to act - a person who is able and willing to cut red tape and move the program forward.US Navy Grace Murray "better to ask for forgiveness than permission" 3. Reward successful program implementation - personal ownership and a stake in that success 4. Take action and avoid paralysis by analysis - tendency to excessively analyze a problem instead of taking action. Overcome by "do it, fix it, try it", bias for action approach. 5. Foster open communication to surface problems - Skunk Works led to the state-of-the-art aircraft 6. Schedule precise tasks, responsibilities, and deadlines - people know the tasks for which they are responsible for and the deadline for completing them
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What are some of the way you can improve implementation of marketing programs?
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Gantt chart
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What is a geographical representation of a program schedule?
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Chief Marketing Officer (CMO)
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The senior executive who is responsible for the firm's marketing activities given the title of what?
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1. The changing characteristics of the global consumer segments served 2. How to market to consumers who increasingly combine Internet online research with offline purchasing at a local store and vice versa
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What are the critical things that a CMO must understand?
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The job has high turnover and the average CMO held the job for less than two years.
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What did a recent study about CMO's show?
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Line positions
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The senior marketing manager for biscuits who has the authority and responsibility to issue orders to people who report to them, such as the two product managers are called what?
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Staff positions
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Who has the authority and responsibility to advise people in line positions but cannot issue direct orders to them?
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Product line groupings
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Which unit is responsible for specific product offerings, such as dinner products or desserts?
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Functional groupings
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What represents the different departments or business activities within a firm such as manufacturing, marketing, finance?
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Geographical groupings
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What are sales territories that are subdivided according to geographic location?
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Market-based groupings
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What group utilizes specific customer segments, such as banking, health care, or manufacturing segments? When this method is combined with product groupings, it is called matrix organization.
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Product manager or brand manager
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The key person in the product or brand group is the manager who heads it called what?
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To plan, implement, and evaluate the annual and long-range plans for the products for which he or she is responsible.
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What is the function of a product manager?
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Become strong advocates for the assigned products, cut red tape to work with various people both inside and outside the organization, assume P&L responsibility for the product line.
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What are the positive things about being a product manager?
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Little direct authority, so they have to use persuasion rather than issue direct orders to implement marketing plans
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What are the negative things about being a product manager?
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Comparing results with planned goals to identify deviations, taking corrective actions on those deviations
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What is the essence of marketing evaluation?
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Marketing dashboards and metrics
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The evaluation phase of the strategic marketing process ties results and actions to goals comparing results with planned goals to identify deviations, using what?
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Management by exception
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A marketing manager inteprets the marketing dashboard information using what, which means identifying results that deviate from plans to diagnose their causes and take new action?
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1. Actual results fall short of sales goals - Colgate beat Crest because of its new Total toothpaste, the first "oral pharmaceutical" ever approved by the FDA 2. Actual results exceed goals - McDonalds marketing the $1 menu, free wi-fi, McCafes during recession instead of tightening their belts and saw more customers
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There are 2 kinds of deviations each triggering different actions, what are they?
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None, but it is trying to measure it with marketing ROI
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What is the measure to detemine if a company's marketing is effective?
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Marketing ROI and to effectively measure it a marketing dashboard and marketing metrics must be used
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What is the application of modern measurement technologies to understand, quantify, and optimize marketing spending?
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