Please enter something

Principles of Marketing – Exam 1 Review (Chapter 2)

question

The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities
answer

Strategic Planning
question

What is the organization’s main activity at a particular time? How will it reach its goals? The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities
answer

Strategic Planning Questions
question

A subgroup of a single business or collection of related businesses within the larger organization
answer

Strategic Business Units (SBU)
question

1. A distinct mission and specific target market 2. Control over its resources 3. Its own competitors 4. A single business or a collection of related businesses 5. Plans independent of other SBUs
answer

Characteristics of Strategic Business Unit
question

A marketing strategy that tries to increase market share among existing customers Present Market/Present Product E.g. Starbucks sells more coffee to customers who use reloadable card
answer

Market Penetration
question

A marketing strategy that entails attracting new customers to existing products New Market/Present Product: E.g. Starbucks opens stores in Brazil and Chile
answer

Market Development
question

A marketing strategy that entails the creation of new products for present markets Present Market/New Product: E.g. Starbucks develops powdered instant coffee called Via
answer

Product Development
question

A strategy of increasing sales by introducing new products into new markets New Market/New Product: E.g. Starbucks launches Hear Music and buys Ethos Water
answer

Diversification
question

Tool used for strategic alternative: Market Penetration – Increase market share among existing customers Market Development – Attract new customers to existing products Product Development – Create new products for present market Diversification – Introduce new products into new markets
answer

Ansoff’s Opportunity Matrix
question

1. Core Innovation – These decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands 2. Adjacent Innovation – Decision are designed to take company strengths into new markets 3. Transformational Innovation – Decisions result in brand-new markets, products, and often new businesses
answer

Innovation Matrix
question

A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
answer

Portfolio Matrix
question

1. Star 2. Cash Cow 3. Question Mark/Problem Child 4. Dog
answer

Boston Consulting Group Portfolio Matrix
question

Fast-growing market leader. Marketing Tactic: Protect existing market share by reinvesting earnings in product development
answer

Star
question

A business unit that generates more cash than it needs to maintain its market share Maintain market dominance by being price leader and making technological changes in the product
answer

Cash Cow
question

Shows rapid growth but poor profit margins Invest heavily to gain better market share, acquire competitors, or drop the SBU
answer

Question Mark/Problem Child
question

Low growth potential and a small market share
answer

Dog
question

The process of anticipating future events and determining strategies to achieve organizational objectives in the future
answer

Planning
question

Designing activities relating to marketing objectives and the changing marketing environment
answer

Marketing Planning
question

Written document that acts as a guidebook of marketing activities for the marketing manager
answer

Marketing Plan
question

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 Start of marketing plan.
answer

Mission Statement
question

Strengths – Things the company does well Weaknesses – Things the company does not do well Opportunities – Conditions in the external environment that favor strengths Threats – Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
answer

SWOT Analysis
question

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
answer

Environmental Scanning
question

1. Social 2. Demographic 3. Economic 4. Technological 5. Political/Legal 6. Competitive
answer

Major Environmental Forces (6)
question

A set of unique features of a company and its products that are perceived by the target market as a significant and superior to those of the competition 3 types of it
answer

Competitive Advantage
question

Experience Curves Efficient labor No-frills products Government subsidies Product Design Reengineering Product innovations New service delivery methods
answer

Sources of Cost Reduction
question

When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
answer

Product/Service Differentiation Competitive Advantage
question

Brand names Strong dealer network Product reliability Image Service
answer

Examples of Product/Service Differentiation
question

Competitive advantage that seeks to target and effectively serve a single segment of the market.
answer

Niche Competitive Advantage
question

Advantage that cannot be copied by the competition A firm that has successfully achieved a competitive advantage will stake out a position unique in some manner from its rivals
answer

Sustainable Competitive Advantage
question

An advantage that cannot be copied by the competition. Sources: Patents Copyrights Locations Equipment Technology Customer service Promotion
answer

Sources of Sustainable Competitive Advantage
question

Statement/goal of what is to be accomplished through marketing activities. Must Be: 1. Realistic 2. Measurable 3. Time specific 4. Compared to a benchmark
answer

Marketing Objective
question

Group of individuals or organizations who share one or more characteristics, therefor may have relatively similar product needs
answer

Market Segment
question

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
answer

Marketing Strategy
question

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.
answer

Marketing Opportunity Analysis (MOA)
question

1. Segment the market based on groups with similar characteristics 2. Analyze the market base on attractiveness of market segments 3. Select one or more target markets
answer

Target Market Strategy (3)
question

A unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market Product Place Promotion Pricing
answer

Marketing Mix
question

Includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and many other factors
answer

Product
question

Making products available when and where customers want them. All business activities concerned with storing and transporting raw materials or finished products
answer

Place (Distribution)
question

Includes advertising, public relations, sales promotion, and personal selling.
answer

Promotion
question

What the buyer must give up in order to obtain a product
answer

Pricing
question

Written document that acts as a guidebook of marketing activities for the marketing manager 1. Implementation 2. Evaluation 3. Control 4. Marketing Audit
answer

Following Up Marketing Plan (4)
question

Requires continual attention, creativity, and management commitment The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities
answer

Effective Strategic Planning