MRKT 303 Chapter 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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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 Mix
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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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A fast-growing market leader.
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Cash Cow
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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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a business unit that shows rapid growth but poor profit margins
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Dog
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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 the 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 of 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 wheat 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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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
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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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Ocan Suits is a popular clothing company. To attract new customers, it decided to launch a jewelry store. According to Ansoff's strategic opportunity matrix, which of the following alternatives has been adopted by Ocan Suits?
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Diversification
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Having a _____ means to be an inexpensive competitor in an industry while maintaining satisfactory profit margins.
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cost competitive advantage
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The notion of competitive advantage means that:
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a successful firm will stake out a position unique in some manner from its rivals.
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Laelle Cosmetics, a cosmetics manufacturing company, sells its products solely in Belwick. The company now plans to adopt a diversification strategy. In this scenario, Laella Cosmetics plans to:
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introduce new cosmetic products in its neighboring country.
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Which of the following statements is true of a market opportunity analysis?
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It is used to identify the market segments a company needs to focus on.
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According to the Boston Consulting Group's (BCG's) portfolio matrix, unlike question marks, cash cows:
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have a dominant market share in their market.
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Marketing myopia refers to:
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defining a business in terms of goods rather than the benefits customers seek.
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Mesa G3, a tools manufacturing company, has a well-established reputation in the domestic market for their products. However, a recent competition from a rival company put Mesa G3 at a considerable loss. According to Ansoff's strategic opportunity matrix, which of the following is most likely to boost Mesa G3's sales of its existing products among new customers?
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Market development
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According to Ansoff's strategic opportunity matrix, _____ is a strategy of increasing sales by introducing new products into new markets.
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diversification
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In the context of the marketing mix, the goal of distribution strategies is to:
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ensure that products arrive in usable condition at designated places when needed.
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According to Ansoff's strategic opportunity matrix, unlike market development, product development:
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involves creating new products for present markets.
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In the context of a marketing mix, which of the following is an element of promotion?
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Personal selling
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In the context of following up on a marketing plan, _____ 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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control
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Assume SLU's Director of Marketing, Michael Rivault, is conducting a SWOT analysis as a part of the University's strategic plan. Which item below represents a Strength or Weakness of SLU?
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the capability of the University's high school recruiters
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Addoso Inc. manufactures electronic gadgets. The marketing managers at Addoso Inc. have discovered that a new competitor is gaining more customers. In the context of SWOT analysis, which of the following actions should be prioritized by the marketing managers at Addoso Inc.?
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They must analyze aspects of its marketing environment.
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A basic premise of the Boston Consulting Group model is that:
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management must find a balance among its product portfolios that based upon market share and market growth
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Which of the following statements is true of the price component of a marketing mix?
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It is what a buyer must give up in order to obtain a product.
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In the context of SWOT analysis, which of the following can be considered a strength of an organization?
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A superior production technology which lowers cost
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In the context of the Boston Consulting Group's (BCG's) portfolio matrix, a _____ is a strategic business unit that generates more cash than it needs to maintain its market share.
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cash cow
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According to Ansoff's strategic opportunity matrix, a firm using the market penetration alternative would try to:
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increase market share among existing customers.
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In the context of a marketing mix, which of the following statements is true of a product?
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The heart of a marketing mix is the product offering and product strategy.
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Jove Inc. is a chocolate manufacturer in the city of Lumberne. While most of the companies in the market produce not more than three basic varieties of chocolates, Jove Inc. sells over 20 different varieties of flavored chocolates. Other companies are almost out of business because they are unable to replicate Jove's collection. This gives Jove an edge over the other chocolate makers in Lumberne. This is an example of _____.
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a sustainable competitive advantage
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According to Ansoff's strategic opportunity matrix, which of the following factors is associated with market development?
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Adding new uses to products
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In the context of a marketing mix, which of the following business activities is most closely related to distribution strategies?
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Storage of raw materials
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A marketing mix for Abita Springs Brewery involves
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distribution strategies.
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In the context of the Boston Consulting Group's portfolio matrix, which of the following statements is true of dogs?
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Typical marketing strategies for dogs are to harvest or divest.
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Magnira Inc. plans to implement a market penetration strategy to increase its market share. According to Ansoff's strategic opportunity matrix, which of the following scenarios is most likely to happen?
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Magnira Inc. will try to increase its market share among existing customers.
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The Marketing Manager at Luzianne Tea (Riley Foods) in New Orleans is developing promotional strategies to increase sales. In this case, which of the following is a promotion stratetgy?
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Have Luzianne sales people call upon high schools to add tea to the lunchroom menu
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In the context of following up on a marketing plan, _____ entails gauging the extent to which marketing objectives have been achieved during the specified time period.
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evaulation
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Defining a business in terms of goods and services rather than in terms of the benefits customers seek is called _____.
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marketing myopia
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In the context of a marketing mix, which of the following business activities is a part of the promotion strategy of firm?
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Usage of social media to increase products sales
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_____ is the process of anticipating future events and making strategy decisions to achieve organizational objectives in the future.
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Planning
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Bowflex, a fitness equipment manufacturer, decides to sell products on its own website, so that its logistics issues can be solved. With this modification, its customers can now buy the equipment even if local stores don't carry the brand. In this case, Bowflex changed the _____ element of the marketing mix.
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place or distribution
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Which of the following should be the main focus of marketers in accordance with distribution strategies?
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Physical locations of products
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The distribution strategy in a marketing mix is concerned with:
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transporting raw materials or finished products.
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Which of the following examples illustrates a niche strategy?
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Smith Bakery, a baker of cakes/pies/desserts, uses only organic and natural ingredients in its pies.
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Which of the following statements is true of a marketing strategy?
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It contains the target market and the marketing mix
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Elmer's Chocolate, an old candy company located in Pontchatoula, La manufacturers Gold Brick Eggs. It plans to use a new product development strategy. In this case Elmer's will introduce a chocolate topping for ice cream sundaes.
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introduce a range of low-calorie chocolates
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Which of the following actions is associated with a niche strategy?
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Choosing a target market that is not served by major companies who have mainstream brands
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Which of the following is an element of a marketing mix?
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Pricing strategies
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The product in a marketing mix includes:
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the company image.
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Which of the following companies has most likely adopted a product/service differentiation competitive advantage?
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A firm that provides highly reliable products
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Which of the following statements is true of a niche strategy?
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Companies that adopt a niche strategy have only a small number of customers.
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In the context of implementation of marketing objectives, which of the following statements is true?
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It involves a lot of communication for executing a plan.
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In the context of the Boston Consulting Group's (BCG's) portfolio matrix, which of the following is true of question marks?
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It operates in a high-growth industry with a low market share
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_____ tells us that costs decline at a predictable rate as experience with a product increases.
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An experience curve
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In the context of a marketing mix, promotion includes:
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public relations activities.
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In the context of a marketing mix, the product includes:
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the name of the brand.
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Which of the following practices can help businesses gain a cost competitive advantage?
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Using simplified production techniques
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Which of the following statements is true of strategic planning?
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A good strategic plan can help protect and grow a firm's resources.
