Chapter 3 Marketing 412

In the context of situational analysis, which of the following is a category for analysis in the internal environment

firm resources

implementation plans

forecast budget appropriate marketing metrics

Goals

general statements of what the firm wishes to accomplish and eventually become refined into specific, measurable, and (hopefully) attainable aims for the firm

Stars

high share, high growth. important for building the future of the business and deserving any needed investment

Situational Analysis

includes elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment

market penetration strategy

investing in existing customers to gain additional usage of existing products

diversification strategy

investing in new customers to generate usage of new products

value

is a ratio of benefits to costs, as viewed from the eyes of the beholder (the customer).is a ratio of benefits to costs, as viewed from the eyes of the beholder (the customer).

value proposition

is the firm's communication of the unique value of its products to its customers. It must be strong enough to move customers past satisfaction

Problem children (question marks)

low share, high growth. high cash needs that, if properly nurtured, can convert to stars

Dogs

low share, low growth. potential high cash users and prime candidates for liquidation

value message

may include the whole bundle of benefits the company promises to deliver - not just the benefits of the product itself.

3 competitive advantages

niche low cost (cost leadership) differentiation

Market planning

ongoing process of developing and implementing market-driven strategies for an organization

Maria, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In this case, she should list competitors that have gone bankrupt under ________.

opportunities

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify?

politcal, legal, ethical

Victor Inc., a producer of headphones used with cell phones and MP3 players, uses contract manufacturing overseas. The firm is concerned that tariffs may be increased. Under which component of situation analysis will an examination of this issue be found?

political, legal, and ethical factors

Form utility is

productions task in creating an offering that is desired by the market

marketing (little m)

represents the specific programs and tactics aimed at customers and other stakeholder groups.

Which of the following is not a major category for analysis in the internal environment

rivalry among existing firms

Which of the following is least likely to be included under action plans?

separate plans for worst-case scenario performance against the forecast

Marketing Big M

serves as a core driver of business strategy

Value Chain

serves as a means for firms to identify ways to create, communicate, and deliver more customer value within a firm.

According to the 2010 U.S. Census, Asian Americans are a high-income, fast-growing racial group in America. In the context of situation analysis, under which of the following macro-level external environmental factors will this be included?

sociocultural/demographic factors

Objectives

specific, measurable, (hopefully) attainable aims that measure what the firm wishes to accomplish

The type of utility that a company and its products (and services) provide its customers is called

benefit utility

Porter Primary activities

-inbound logistics -operations -outbound logistics -marketing and sales -service

4 primary activities in the value chain

-operations -marketing and sales -outbound logistics -inbound logistics

4 supporting activities of the value chain

-procurement -firm infrastructure -technology development -human resources management

portfolio analysis

-views SBU's and sometimes product lines as a series of investments from which it expects maximization of returns -boston consulting group (BCG) growth-share matrix -GE business screen

GE Business Screen

Show business position and market attractiveness.

The best place in a SWOT analysis to list the availability of credit for a firm seeking to expand through new construction of real estate is ________.

external opportunities

The best place in a SWOT analysis for a wristwatch manufacturer to identify the presence of competitive substitute products is ________.

external threats

Value proposition outline

-Customer satisfaction -Customer loyalty -Customer retention increases -customer switching decreases

Dimensions of the GE business screen approach to portfolio analysis

-Market attractiveness -Business position

BCG approach

-Market growth rate -competitive position

Boston Consulting Group Matrix

Competitive position is x axis (Ratios of share-to-share of largest competitor) Market growth rate is y axis

retrenchement business strategy

-a weak competitive position may force -focuses assets where there is greater potential

Growth business strategy

-concentration via vertical or horizontal integration -diversification via concentric or conglomerate means

Stability business stratefy

-continue current activities -useful short-term strategy -dangerous in the long-run if competition changes

What must be in place for effective marketing planning to occur?

-everyone in an organization must understand and support the concept of customer orientation -all internal organizational processes and systems must be aligned around the customer

Porter Supporting activities

-firm infrastructure -human resources mgmt -tech development -procurement

Miles and Snow's strategy types

Analyzers, prospectors, defenders, and reactors

Contingency plans

Described in terms of a separate plan for a worst-case, best-case, and expected-case performance against the forecast

Generic business strategies

Growth stability retrenchment

Cash Cows

High share, low growth rate. Key sources of internal cash generation for the firm

Which utilities are created when products are available to customers at a convenient location when they want to purchase them, and facilities of exchange are available that allow for transfer of the product ownership from seller to buyer?

Place Time Ownership

Product development

Strategy means investing in new products that will increase usage from the current customer base

Strategic vision

a discussion of what the company would like to become in the future

Goals and objectives should be set

after completion of market research, situation analysis, and competitor analysis

sustainable competitive advantage

an advantage that cannot be copied by the competition

Mission Statement

articulates an organization's purpose, or reason for existence.

strategy

at the firm level, it is a comprehensive plan stating how the organization will achieve its mission and objectives

In the BCG matrix, ________ are characterized by high share and low growth and are the key sources of internal cash generation for a firm

cash cows

the activities a firm does better than its competitors are known as

distinctive competencies

Marketing plan

document that records the marketing planing process in a useful framework

market development

strategy that allows for expansion of the firm's product line into untapped markets, often internationally

A swot analysis of a firm is least likely to

suggest solutions to problems

What can impact the competitive nature of an industry through the ability to raise prices or affect the quality of inbound goods and services?

suppliers

Today many retailers create apps that customers can download to their smartphones or tablets to be up-to-date on the company's offerings. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify?

technological factors

generic strategy

the firms overall directional strategy at the business level.

Which of the following is true of utility

the four major kinds of utility are form, time, place and ownership

Utility is

the want-satisfying power of a good or service

Which of the following is most likely to be considered a goal rather than an objective?

to be the leader in one's field

Which of the following is considered an objective?

to increase revenue by 15% to 20% in each of the next five years

Although Michael knew he couldn't really afford the Mercedes, he wanted it anyway. The want-satisfying power of a good is called ________.

utility