CHAPTER 2

Q1: What is strategic planning?

A: It’s the process of matching a firm's goals and capabilities with its changing marketing opportunities.

Q2: What are the four steps in the strategic planning process?

A:

1. Define the company’s mission

2. Set company objectives and goals

3. Design the business portfolio

4. Develop functional strategies

Q3: What makes a good mission statement?

A: It should be market-oriented, motivating, and focused on customer value rather than just products.

Q4: What is a business portfolio?

A: The full collection of businesses and products that make up a company.

Q5: What is the BCG Growth-Share Matrix used for?

A: To evaluate business units based on market growth rate and relative market share.

Q6: What are the four categories in the BCG Matrix?

A:

• Stars: High growth, high share – need investment.

• Cash Cows: Low growth, high share – fund other units.

• Question Marks: High growth, low share – uncertain potential.

• Dogs: Low growth, low share – may be phased out.

Q7: What is the Product/Market Expansion Grid used for?

A: To identify growth strategies by combining current/new products with current/new markets.

Q8: What are the four strategies in the Product/Market Expansion Grid?

A:

1. Market Penetration – More sales in current market

2. Market Development – New markets for current products

3. Product Development – New products for current markets

4. Diversification – New products in new markets

Q9: What is downsizing in portfolio planning?

A: Reducing the business portfolio by eliminating unprofitable or misaligned products/business units.

Q10: What role does marketing play in strategic planning?

A: Marketing provides customer and market insights, and helps create value through segmentation, targeting, and the marketing mix.

Q11: What is partner relationship management?

A:

• Internal: Working across departments to improve the value chain.

• External: Collaborating with partners like suppliers and distributors as part of the value delivery network.

Q12: What is a customer value-driven marketing strategy?

A: A strategy that focuses on selecting the right customers and creating superior value for them.

Q13: What are the four steps in creating a customer value-driven strategy?

A:

1. Segmentation

2. Targeting

3. Differentiation

4. Positioning

Q14: What is positioning?

A: Crafting a distinctive, meaningful place for a product in the minds of target consumers using a unique value proposition.

Q15: How do positioning maps work?

A: They show how brands are perceived in relation to each other, often using variables like price and quality.

Q16: What is the marketing mix (4 Ps)?

A:

• Product: What’s being offered

• Price: What customers pay

• Place: Where/how it’s delivered

• Promotion: How it’s communicated

Q17: What is a SWOT analysis?

A: A tool that assesses:

• Strengths (internal advantages)

• Weaknesses (internal limitations)

• Opportunities (external chances to grow)

• Threats (external risks)

Q18: What is marketing planning?

A: Creating a detailed plan that outlines how a company will engage customers, deliver value, and achieve strategic objectives.

Q19: What is marketing implementation?

A: Turning the marketing strategy and plan into real actions and results. Involves assigning roles, timelines, and coordinating teams.

Q20: What’s the difference between planning and implementation?

A:

• Planning: Deciding what to do

• Implementation: Actually doing it effectively

Q21: What is marketing control?

A: Measuring and evaluating marketing performance and taking corrective action if needed.

Q22: What are the two types of marketing control?

A:

• Operating control: Day-to-day performance checks

• Strategic control: Ensures marketing strategy aligns with long-term company goals