Marketing Midterm Chapter 2

What is strategic planning?

Maintaining a strategic fit between organizational goals, capabilities, and changing marketing opportunities.

What is a mission statement?

A statement of an organization's purpose and what it wants to accomplish.

What is an example of Disney's mission?

"To make people happy."

What is a product-oriented definition?

Defines a business by the products it sells, such as coffee and snacks.

What is a market-oriented definition?

Defines a business by the customer value or experience it provides.

What is the BCG matrix used for?

Evaluating business units or products to decide how to allocate resources.

What are cash cows in the BCG matrix?

Low market growth, high relative market share; established products needing less investment.

What are stars in the BCG matrix?

High market growth, high relative market share; often require heavy investment.

What are question marks in the BCG matrix?

High market growth, low relative market share; require investment to build share.

What are dogs in the BCG matrix?

Low market growth, low relative market share; limited potential as major cash sources.

BCG matrix: low growth + high share?

Cash cow.

BCG matrix: high growth + high share?

Star.

BCG matrix: high growth + low share?

Question mark.

BCG matrix: low growth + low share?

Dog.

What is one limitation of the BCG matrix?

A portfolio of only cash cows may lack future stars and growth opportunities.

What is market penetration?

Selling existing products in existing markets.

What is product development?

Selling new products in existing markets.

What is market development?

Selling existing products in new markets.

What is diversification?

Selling new products in new markets.

Product-market grid: existing product + existing market?

Market penetration.

Product-market grid: new product + existing market?

Product development.

Product-market grid: existing product + new market?

Market development.

Product-market grid: new product + new market?

Diversification.

What is market segmentation?

Dividing a market into groups with different needs, characteristics, or behaviors.

What is market targeting?

Evaluating segments and selecting which ones to enter.

What is market positioning?

Creating a clear, distinctive, desirable place for a product in target consumers' minds.

Targeting vs. positioning?

Targeting chooses the customers to serve; positioning shapes how those customers perceive the product.

What are the four stages of managing marketing?

Analysis, planning, implementation, and control.

What happens during marketing planning?

Develop the strategic plan.

What happens during marketing implementation?

Carry out the plans.

What happens during marketing control?

Measure and evaluate results, then take corrective action.

What is the correct strategic planning sequence in the notes?

List marketing strategy; define mission; set objectives; design portfolio; plan marketing and functional strategies.