MKT 3343 Chapter 2 LS – Flashcards
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A ________ statement describes an organization's function in society and often identifies its customers and products
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mission
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In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to the organization's best growth opportunities.
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portfolio
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Place these in order from highest level to lowest level: functional level corporate level strategic business unit level
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1. corporate level 2. strategic business unit level 3. functional level
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What are the characteristics of the BCG name "Dogs"?
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may generate enough cash to sustain themselves but are not considered current or future winners
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What are the characteristics of the BCG name "Cash cows"?
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generate large enough amounts of cash which can be invested in other SBUs
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What are the characteristics of the BCG name "Question marks"?
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require cash to maintain market share, even though that share is small
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What are the characteristics of the BCG name "Stars"?
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require cash to sustain rapid growth but will likely generate cash when growth slows
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Step 1 of the planning phase in the strategic marketing process involves what?
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performing a situation analysis using SWOT
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What 2 techniques aid in decisions about where an organization wants to go?
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1. diversification analysis 2. business portfolio analysis
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A visionary organization's core values, ________, and organizational culture make up its foundation.
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mission
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Organizational _______ is defined as a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of the organization.
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culture
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Product development and market development are two strategies that are part of _________ analysis.
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diversification
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What is NOT a part of the implementation phase of the strategic marketing process?
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1. setting marketing and product goals 2. comparing the results to plans
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A statement of an accomplishment of a task to be achieved, often by a specific time, is known as a ______.
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goal
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T/F: An organization's core values typically do not change much over time.
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true
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What is the relative market share and market growth rate of the BCG "Dogs"?
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low relative market share, low market growth rate
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What is the relative market share and market growth rate of the BCG "Cash cows"?
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high relative market share, low market growth rate
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What is the relative market share and market growth rate of the BCG "Question marks"?
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low relative market share, high market growth rate
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What is the relative market share and market growth rate of the BCG "Stars"?
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high relative market rate, high market growth rate
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Identifying one's direct competition is a way to answer what question?
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What business are we in?
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What are 2 elements that define an organization's direction?
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1. specific goals 2. the business it is in
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The functional level is made up of ___, which provide specific and focused strategic direction.
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departments
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A marketing _______ is the visual computer display of the essential information related to achieving a marketing objective.
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dashboard
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What are 2 parts of the implementation phase of the strategic marketing process?
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1. obtaining resources 2. designing the marketing organization
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Business portfolio analysis and diversification analysis help an organization to answer what important strategic question?
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where do we want to go for growth?
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In SWOT analysis, strengths and weaknesses are _______, and opportunities and threats are ____________.
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internal; external
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An organization sets its ______ in terms of the business it is in and its specific goals.
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direction
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What are the three phases of the strategic marketing process?
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1. planning 2. implementation 3. evaluating
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What step of the planning phase of the strategic marketing process involves developing a plan for how to satisfy customer needs, while the who and what aspects had been determined previously?
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marketing program
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What specific business action is preferred for "strength" in SWOT?
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build on it
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What specific business action is preferred for "weakness" in SWOT?
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correct it
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What specific business action is preferred for "opportunity" in SWOT?
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exploit it
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What specific business action is preferred for "threat" in SWOT?
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avoid it
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Obtaining resources and defining tasks and deadlines are part of which phase in the strategic marketing process?
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implementation
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What is true of portfolio analysis?
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1. management allocates its resources to products based on growth opportunities 2. firms typically perform it at the SBU or product line level of the firm 3. management evaluates the firm's various products and businesses
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Each display in a marketing dashboard shows a marketing ______ in an easily interpreted visual format.
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metric
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_______ is the money left over after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
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profit
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The marketing department as a whole is part of the _______ level, in terms of strategy within an organization.
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functional
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The primary difference between a business firm and a nonprofit organization is that a...
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business serves its customers in order to earn a profit
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In searching for growth opportunities, organizations using diversification analysis consider both current and new options for...
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products and markets
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The corporate level is where top management directs overall ______ for the entire organization.
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strategy
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List 3 facts that are true about SBUs
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1. it stands for "strategic business unit" 2. managers of an SBU set specific strategic direction 3. firms with a single business focus may not have SBUs
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A marketing ______ is a road map for the marketing actions of an organization for a specific future time period.
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plan
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Inexperienced managers would be considered what in a SWOT analysis?
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a weakness
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For an organization performing SWOT analysis, a threat is what?
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unfavorable, external
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Acting on deviations, both positive and negative, is an important part of what phase in the strategic marketing process?
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evaluation
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Points of ________ are characteristics of a product that make it superior to competitive substitutes.
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difference
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What are 2 broad ways that organizational strategies most ofern vary?
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1. level 2. offerings
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Organizations that develop similar offerings, when grouped together, create a(n) ________.
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industry
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A marketing _______ is the means by which a marketing goal is to be achieved, whereas marketing ______ are detailed decisions essential to the success of the former
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strategy; tactics
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Identifying what allows an organization to determine where it is at the present time, as it begins to set a strategic direction?
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1. competencies 2. competitors 3. customers
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What is the last step in the planning phase in the strategic marketing process?
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the marketing program
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List 2 facts that are true of a visionary organization's foundation.
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1. it explains why an organization exists 2. it provides guidance and inspiration to employees
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The functional level is made up of ______, which provide specific and focused strategic direction.
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departments
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How an organization intends to achieve its goals, or its _______, may vary both by level and by offering.
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strategies
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A marketing metric is a _____________ of the quantitative value of a marketing activity or result.
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measure
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To define its business, an organization can start by
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looking at the set of organizations that sell similar offerings
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What is an appropriate response when a deviation is identified in the evaluation phase of the strategic marketing process?
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exploit a positive deviation and/or correct a negative deviation
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A ________ is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
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strategic business unit (SBU)
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A diversification strategy, 1 of 4 possible market-product strategies included in diversification analysis, introduces a _________ product to a _______ market.
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new; new
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The planning gap is an example of
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a comparison of projected sales for current plans and new sales goals
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To what does "opportunity" refer in SWOT analysis?
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favorable aspects of the external environment
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Internal expansion generally is riskier than domestic expansion because of differences in...
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1. cultural traditions 2. language 3. government regulations
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Businesses can pursue several different types of _________ that they would like to achieve, such as those pertaining to market share, quality, or customer satisfaction.
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goals
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T/F: Marketing strategy is a tool that allows marketers to understand how forces in the environment will impact the organization in the future.
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false
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T/F: Regarding market share: It is the percentage of sales an industry accounted for by a specific firm
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true
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Growing demand for one's product in an overseas market is an __________ for an organization.
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opportunity
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The BCG Business Portfolio Analysis...
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1. is applied by classifying a firm's products of services into a four-quadrant matrix 2. requires calculations of market growth rate and relative market share
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What is essential to recognize when determining organizational strategy?
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an organization has limited resources which must be focused on achieving goals
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Core competencies are an organizations...
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1. special capabilities, including skills, technologies, and resources that distinguish it from other organizations
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A company that has unique strength relative to competitors, often based on quality, time, cost, or innovation has...
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a competitive advantage
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__________ is the ratio of sales revenue of the firm to total sales in the industry, including the firm itself.
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market share
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The _____ is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place.
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planning gap
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A market penetration strategy attempts to increase sales of present products among
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existing customers
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In defining one's business, avoid a _________ definition that is not focused on customer _______
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narrow; needs
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A market penetration strategy, as one of the possible growth opportunities, may be achieved by...
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encouraging current customers to spend more on the brand
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What is an accurate description of a typical pathway for an SBU through the 4 quadrants of the BCG business portfolio analysis?
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an SBU often starts as a question mark and proceeds counterclockwise around the quadrants
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T/F: An organizations core values should inspire and motivate employees to take production action.
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true
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Marketing segmentation is most essential for what part of the planning phase of the strategic marketing process?
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marketing-product focus
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A small group of people from different departments who are mutually accountable to accomplish a task or common goal is known as...
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a cross-functional team
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What is a job title for the head of marketing in a large organization?
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chief marketing officer
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Organizational strategies can vary by _____, such as when top managers are creating a mission statement and functional employees are determining the content of a script for a sales call.
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level
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Organizations such as Ben and Jerry's have added an element to their mission statements to reflect what?
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an ideal that is morally right and worthwhile
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What is one of the best ways the marketing department can perform its key role of looking outward?
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listening to customers
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The ______ strategy offers a new product or service to a firms existing market
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product development
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Market development is a strategy to sell _____ products to new markets.
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existing
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What is often a trigger for an organization to rethink its business model?
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technological changes
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The product development strategy involves a _______ product to a ____________ market for the organization.
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new; current
