ASC1 Chp. 1-2 & 11

What is the pricing equivalent in the 4 C's?

Cost

The first step in the business unit strategic-planning process deals with which of the following?

Define business mission

Value delivery network

- strong companies are redesigning their work flows and building cross-functional teams to be responsible for each process - this process can be enhanced through partnering with specific suppliers and distributors to create a superior value delivery network

Business Unit Strategic Planning steps

1. Business unit mission (aligns with corporate mission) 2. SWOT analysis 3. Goal formulations 4. Strategic formulations 5. Implementation control

The four major planning activities that corporate planning

1. Corporate mission 2. Establishing SBUs 3. Assigning resources to SBU 4. Assessing growth opportunities

The four planning activities made at the corporate level

1. Defining corporate mission 2. Establishing SBUs 3. assigning resources to each SBU 4. Assessing growth opportunities

What are the core concepts that shape marketing strategies?

1. Needs (food, water, shelter), wants and demands 2. target markets 3. value (customer needs value for a product) and satisfaction 4. marketing channels 5. supply chain 6. competition 7. macroenvironment (external factors that influence marketing strategies)

Five major characteristics of a good mission statement

1. What is our business? 2. Who is the customer? 3. What is of value to the customer? 4. What will our business be? 5. What should our business be?

Identify the three conditions that help facilitate an exchange

1. there must be atleast two parties 2. each party has something that might be of value 3. each party is capable of communication and delivery 4. accept or reject the exchange offer

A(n) _________ market looks ahead to needs customers may have in the new future.

Anticipative

the core business of McDonald's is selling fast food. A ________ growth strategy is a growth strategy in which a business grows by offering products or services that are different from its core business

Diversification

________ attack strategy involves attacking the market leader or Competitor from all sides.

Encirclement

What is the role of a mission statement?

Focus on a limited number of goals, stress the firm's major policies and values, define the major competitive spheres in which the company operates, take a long-term view, be stated in as short, memorable, and meaning of a way as possible

Market definition of a business

Focus on the firm's customer satisfying process

What step comes after a company has conducted a SWOT analysis while developing a business plan:

Goal formulation

To see if a marketing plan is a success or not, what section in a marketing plan will see this information:

Implementation and control/ feedback and control

The ________ is the last section of the marketing plan. It spells out the goals and budget for each month or quarter so management can review each period's results and take action as needed.

Implementation controls

Market view of competition

Indirect competitors and direct competitors

Industry view of competition

Industry concept of competition views competition as oligopoly, monopoly, pure competition, monopolistic competition

What is the Industry concept of competition?

Industry concept of competition views competition as oligopoly, monopoly, pure competition, monopolistic competition

Growth strategy that emphasizes blending businesses together through acquisitions and mergers

Integrative growths strategies

The market ________ has the largest market share and usually shows the way to other firms in price changes, new-product introductions, distribution coverage, and promotional intensity.

Leader

Monopoly

Number of sellers = 1 Degree of product differentiation = none Price controlled

Oligopoly

Number of sellers = few Degree of product differentiation = standardized or some product differentiation Some price control; high barriers to entry

Monopolistic competition

Number of sellers = few to many Degree of product differentiation = high Retail industry

Pure competition

Number of sellers = many Degree of product differentiation = none Commodity Industry

_________ defensive involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

Position defense

When a company decides on allowances and discounts, what is the marketing mix component?

Price

A company designs a new product and puts it in production. The company then makes sure it has the right pricing and promotion strategy to make the product successful. What type of organizational orientation is this:

Product

When a company is making decision on services and warranties. What marketing mix component is this?

Product

What decisions are made within each marketing mix?

Product - packaging, returns, product, positioning, quality control, design Place - assortment, transportation, warehousing, inventory management, intermediary Price - list processes, allowances, rebates, discounts, credit terms Promotion - personal selling, sales promo, direct marketing, public relations

4 p's of marketing mix

Product, Place, Price, Promotion

To satisfy customers, a(n) _________ marketer finds a stated need and fills it

Responsive

Competitors view of competition

Share of market; share of mind; share of heart

Pegasus conducts a SWOT analysis and identifies industry growth. This section is found in ---------- of the marketing plan.

Situation analysis

share of market

The competitor's share of the target market

share of heart

The percentage of customers who named the competitor in responding to the statement "Name the company from which you would prefer to buy the product."

**Which of the following holds that consumers prefer products that are widely available and inexpensive?

The production concept

Which of the following statements is true of marketing plans?

They provide direction and focus for a brand, product, or company

market penetration strategy

a growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers

market development strategy

a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international

product development strategy

a growth strategy that offers a new product or service to a firm's current target market

selling orientation

a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory

Orientation

a mindset a company has

A market follower can improvise a market leader's product and make it even better than the market leader's product. These market followers may be future market challengers. What type of market follower is this company?

adapter

sales orientation

aggressively selling the product; idea was to make cash

Primary activities of a value chain

all activities that involve the creation of the product

support activities of a value chain

all supporting aspects that help the primary activities

Product Orientation

an inward-looking approach that focuses on making products that can be made - or have been made for a long time - and then trying to sell them

_________ activities include those the company undertake to make the product accessible and available to target customers.

channel

As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations.

cloner

marketing orientation

company focuses on making a quality product and relies on their marketing strategy

As a market follower strategy, the ________ duplicates the leader's product and packages and sells it on the black market or through disreputable dealers.

counterfeiter

In a _______ defense strategy, the market leader can meet the attacker frontally and hit its flank or launch a pincer movement so that the attacker is forced to pull back to defend itself.

counteroffensive

4 c's of marketing

customer solution, customer cost, convenience, communication

4 C's

customer, cost, convenience, communication

Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters?

deciding sales channels

The task of any business is to

deliver customer value at a profit

A company that makes products for a specific market segment of consumers is called:

end-user specialist

Of the four organizational levels, the corporate level is likely to make which of the following decisions?

entering a new market

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ______ defense, the outposts will be central to the organization's new competitive strategy.

flank

A marketing manager has planned a strategy that will require the organization to erect outposts to protect its weak front-running brands. In this ________ defense, the outposts will be central to the organization's new competitive strategy.

flank

Target market definition of a business

focus is on selling the product or service to the current market

Strategic market definition of a business

focus is on the current market and the potential future

Production orientation

high production efficiency, lows costs, mass production

When Flipkart, an online company decided to take Amazon's business model to sell products online to India, this was an example of ------------ strategy

imitator

How can one determine whether a company has an integrated marketing strategy?

integrated marketing strategy is when your target market and 4 p's align with each other.

A company that is a global success as a result of focusing their attention on a very small category of customers and keeping profit margins high is a

market nicher

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________.

market nicher

If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore ________ strategy first because it is easier to improve an existing business than to build a new one.

market-penetration

What is the marketing concept of competition?

marketing concepts of competition views competition as direct and indirect

share of mind

measures how often consumers think about a particular brand as a percentage of all the times they think about all the brands in its category - can be defined simply as positive perceptions of the brand obtained by market research

Market broadening and market diversification are likely tactics employed in _______ defense strategies.

mobile

An industry structure that is characterized by one seller and little product differentiation is

monopoly

The starting point of analyzing any industry

number of sellers and degree of product differentiation

Position defense

occupying the most desirable position in consumers' minds, making the brand almost impregnable. (unbeatable)

An industry structure where barriers to enter are high as a result the industry has very few companies is a/an

oligopoly

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy

preemptive

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ strategy.

preemptive

The ______ concept holds that customers will favor offerings with the best quality, performance, or innovative features.

product

When Starbucks introduced its Tazo Tea line to bring in customers from its existing market. Starbucks was employing a ________ strategy.

product development strategy

Webmax Inc, produces and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does Webmax have toward the marketplace?

product orientation

As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The company believes that its competitive edge lies in its ability to offer the best prices. They also maintain an excellent distribution network that ensures wide availability of their products. SteelMakers has a _______ orientation

production

Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs and mass distribution.

production oriented

A company uses creative techniques to stimulate consumer demand for a defective product . What is the organizational orientation:

selling

Rick Johnson trains his company's sales force to target the consumer. He repeatedly asks his team to bear in mind the fact that it is the sales team's responsibility to rouse the consumer's interest and make the consumer feel that he or she needs the product. A true salesman is one who can convert an indifferent consumer walkjing into the store into a new customer. Johnson believes in the ________ concept.

selling

The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization's products.

selling

A characteristic of a ________ unit is that it can be a single business or collection of related businesses that can be planned separately from the rest of the company.

strategic business

Which of the following elements of a marketing plan permits senior management to grasp the plan's major thrust?

the executive summary

The production concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

Product concept

the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements

Selling Concept

the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort

Marketing Concept

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

Flank defense

the market leader should erect outposts to protect a weak front or support a possible counterattack

What is a value chain?

tool to identify ways to create customer value