Chapter 2

What is the process of developing and maintaining a strategic fit between an organization's goals and capabilities and changing marketing opportunities called?

Strategic Planning

What should a mission statement primarily define in a marketing context?

The business in terms of satisfying basic customer needs.

What does Walmart’s market-oriented mission statement emphasize?

Delivering low prices every day for ordinary folks.

What are the two decisions involved in setting company objectives?

Identifying the focus of the company’s actions and defining specific performance benchmarks.

What is a Strategic Business Unit (SBU)?

A unit of the company that has a separate mission and objectives that can be planned separately from other company businesses.

What is market segmentation?

Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors.

What is the objective of market targeting?

To evaluate each market segment’s attractiveness and select segments to enter.

What does the term 'differentiation' refer to in marketing?

The process of distinguishing the market offering from that of competitors to create superior customer value.

What are the four Ps of the marketing mix?

Product, Price, Promotion, Place.

What is the purpose of a marketing plan?

To address the what and why of marketing activities and detail the strategies to achieve objectives.

What does marketing return on investment (Marketing ROI) measure?

The net return from a marketing investment divided by the costs of the marketing investment.

What is meant by the term 'marketing control'?

Evaluating the results of marketing strategies and plans and taking corrective action to ensure objectives are met.

What is the final goal of developing a business portfolio?

To leverage the company's strengths, increase opportunities, and mitigate threats in the marketing environment.

What does 'downsizing' refer to in the context of a business portfolio?

The reduction of the business portfolio by eliminating unprofitable products or business units.

What role does marketing play in strategic planning?

It provides a guiding philosophy and inputs to strategic planners by identifying attractive market opportunities.

The process of identifying customer needs and wants is called _________.

Marketing Research.

In marketing, the term _________ refers to the totality of products and services offered by a company.

Product Mix.

The _________ includes all efforts to communicate with potential customers about products and services.

Promotion.

The _________ refers to the pathway through which goods and services flow from the producer to the consumer.

Distribution Channel.

A ___________ focuses on satisfying a specific customer segment rather than the entire market.

Niche Marketing Strategy.

_________ refers to a market strategy that involves creating a unique image or perception of a product in a consumer's mind.

Branding.

In the product lifecycle, the stage where sales begin to flatline and profits decrease is known as _________.

Decline.

An organization’s target market is usually identified through _________.

Market Segmentation.

The adoption of a new innovation in marketing follows a curve that is typically represented as the _________.

Diffusion of Innovation Curve.

The combination of efforts that an organization makes to attract and retain customers is referred to as _________.

Customer Relationship Management (CRM).

In pricing strategies, _________ pricing involves setting a low initial price for a new product to attract customers.

Penetration.

The _________ concept suggests that customers will favor those products that offer the most quality, performance, and features.

Product.

To understand consumer behavior, companies often use _________.

Psychographics.

The _________ is a formal document that outlines a company's marketing strategy and tactics.

Marketing Plan.

In the context of retail marketing, ____________ refers to the series of steps taken from product generation through manufacturing and distribution to consumer use.

Supply Chain Management.

Steps in Strategic Planning

• Define company mission

• Set goals n objectives

• Design business portfolio

• Plan marketing & other strategies

Business portfolio

The collection of businesses and products that make up the company

Portfolio Analysis

The process by which

management evaluates the products and

businesses that make up the compaBy

Star

High market growth rate , High market share

Cash cow

Low market growth rate , high market share

Question

high market growth rate , low market share

Dog

Low market growth rate , low market share

Designing the business portfolio

Identify SUB

Look at their attractiveness

How much support does each need

Market penetration –

Company growth by increasing sales

of current products to current market segments without

changing the producT

Market development

Company growth by identifying and

developing new market segments for current products.

Product development

Company growth by offering

modified or new products to existing market segments.

Diversification

Company growth through

starting up or acquiring businesses outside the

company’s current products and Markets

Value chain

The series of departments that carry

out value-creating activities to design, produce,

market, deliver, and support a firm’s products

Partner relationship management

The process of

working closely with partners in other

departments to form an effective value chain that

serves the customer

Value delivery network

(Outside) This is made up of the

company, suppliers, distributors, and ultimately

customers who partner with each other to improve

performance of the entire system in delivering

customer value.

Market positioning

Where your brand is in the mind of consumers relative to competitors . a product

to occupy a clear, distinctive and desirable

place relative to competing products in the

minds of target consumers

marketing department organization is

responsible for executing marketing strategies

and plaNo. There are 4 types

Functional , geographic , product management organization, market or consumer management organization

Functional organziation

The most common

form of marketing organization with different

marketing functions headed by a functional specialist.

§ E.g. Sales Manager/ Market Research Manager/

Customer Service Manager/ New Product MaAnger

Geographic organization

Managers are responsible for developing strategies

and plans for a specifIc region

Product management organization

Managers are responsible for developing strategies

and plans for a specific product

Market or consumer management organization

Useful for companies with one

product line sold to many different markets

and customers.

§ Managers are responsible for developing strategies

and plans for their specific markets or customers

Operating control as a type of marketing control

involves checking

ongoing performance against an annual plan

and taking corrective action as needEd

Strategic control as a type of marketing control

involves looking at

whether the company’s basic strategies are

well matched to its opportuniTunes