Marketing Chapter 2

What are Core Values?

Fundamental, enduring principles that guide an organization’s conduct over time and shape its culture.

What are Mission Statements?

Broad statements of an organization’s purpose, identifying its function in society and what it hopes to achieve.

What is Organizational Culture?

The shared values, attitudes, and norms that shape behavior within an organization.

What are Goals (or Objectives)?

Statements of accomplishments to be achieved, often specific and measurable (e.g. launch 60 new stores by 2025).

What is Market Share?

The ratio of a company’s sales revenue to the total sales revenue of all firms in the industry, including itself.

Company’s sales revenue: Total sales revenue of all firms in the industry

What is a Marketing Plan?

A roadmap for the marketing actions of an organization for a specific future period (usually 1–5 years).

What is the BCG Matrix (Business Portfolio Analysis)?

A tool to assess business units by market growth rate and relative market share:

Stars: High growth, high share

• Question Marks: High growth, low share

• Cash Cows: Low growth, high share

• Dogs: Low growth, low share

What are the Four Strategies of Diversification Analysis?

• Market Penetration: Increase sales of current products in current markets

• Market Development: Sell current products in new markets

• Product Development: Sell new products in current markets

• Diversification: Sell new products in new markets

What is the definition and purpose of a SWOT Analysis?

Identifies internal strengths and weaknesses, and external opportunities and threats — to build on strengths, correct weaknesses, exploit opportunities, and avoid threats.

What is a Situational Analysis?

An assessment of where a company has been, where it is now, and where it is headed — helps set strategic direction.

Apple’s iPhone has very high sales and dominates a rapidly growing smartphone market.
Which BCG category does it fit into?

⭐ Star
💡 Explanation: High market share in a high-growth market. Requires heavy investment to maintain growth but brings in lots of revenue.

Apple’s iPod had strong sales in the past but now has very low sales in a declining market.
Which BCG category does it fit into?

🐶 Dog
💡 Explanation: Low market share in a low-growth market. Generates little revenue and growth — often phased out.

Apple’s iPad still sells well but the tablet market has slowed down and is not growing much.
Which BCG category does it fit into?

🐮 Cash Cow
💡 Explanation: High market share in a slow-growth market. Produces steady profit with little need for investment.

Apple’s Vision Pro headset is in a fast-growing mixed-reality market, but its market share is small right now.
Which BCG category does it fit into?

❓ Question Mark
💡 Explanation: Low market share in a high-growth market. Could become a Star or fail, depending on future investment.

A startup’s AI wearable just entered a booming market but is unknown and has almost no customers yet.
Which BCG category does it fit into?

❓ Question Mark
💡 Explanation: High growth market but very low market share; it needs lots of marketing and investment to succeed.

A large company’s printer division makes steady sales but the overall printer market is shrinking.
Which BCG category does it fit into?

🐮 Cash Cow
💡 Explanation: High share in a low-growth market; generates steady cash, used to fund Stars and Question Marks.