CH 3

Which of the following are competitive environmental factors?

- bargaining power of suppliers: suppliers impact the competitive nature of an industry through their ability to raise prices or affect the quality of inbound goods and services - rivalry among existing firms - bargaining power of buyers - to what degree can customers affect prices or product offerings - threat of substitute products -threat of new entrants

What elements 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.

What elements of leadership help to make market-driven strategic planning effective?

-The CEO and others at the top of the organization set a positive tone through a customer-centric business philosophy. -Upper management invests in resources to make market-driven strategic planning work.

What are the four types of utility given by products or services?

-time -form -ownership -place

cost Leadership

Choice The organization strives to have the lowest costs in its industry and produces goods or services for a broad customer base. Note the emphasis on costs, not prices.

________competencies are the activities that the firm can do exceedingly well.

Core **Porter's premise is that firms must first identify their core competencies or the activities the firm can do exceedingly well. **when these core competencies are superior to those of competitors, they are called distinctive competencies , Firms should invest in distinctive competencies, as they offer opportunity for sustainable competitive advantage in the marketplace, especially if the competencies cannot be duplicated easily or usurped by competitors.

rivalry among existing firms

How much direct competition is there?

threat of substitute products

Other products can satisfy many of the same customer needs as another product

_______ analysis views SBUs and sometimes even product lines as a series of investments from which it expects maximization of returns.

Portfolio ** two of the most popular approaches are the Boston Consulting Group (BCG) Growth-Share Matrix and the GE Business screen.

A(n) ______ is a relatively autonomous division or organizational unit of a large company that operates independently but within the corporate umbrella, exercising control over most of the factors affecting its long-term performance.

Strategic business unit (SBU)

Firm resources

Taking a look at all aspects of a firm's functional/operational-level assets and capabilities

firm leadership:

The CEO must believe and support the structure, systems, and culture necessary for market-driven strategic planning.

differentiation

The organization competes on the basis of providing unique goods or services with features that customers value, that they perceive as different, and for which they are willing to pay a premium.

focus (or Niche)

The organization pursues either a cost or differentiation advantage, but in a limited (narrow) customer group. A focus strategy concentrates on serving a specific market niche.

sociocultural/demographic

Trends among consumers and in humanity as a whole impact marketing planning greatly

True or false: Anyone from any unit at any level whose contribution and participation in the process will enhance the likelihood of a successful outcome should be involved in marketing planning.

True

Which of the following are tips for having a successful marketing planning experience?

Utilize input, but don't become paralyzed by information and analysis. Don't underestimate the implementation part of the plan. Give yourself and your people room to fail and try again. Stay strategic, but also stay on top of the tactical. Stay flexible.

political, legal and ethical

all firms operate within certain rules, laws and norms of operating behavior

A(n)__________is some type of utility that a company and its products (and services) provide its customers.

benefit

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

benefit

Making better decisions as a marketing manager requires___

collecting and analyzing market data gathering information understanding your customer and business markets

According to Michael Porter, a firm's ______ strategy identifies three primary categories: low cost, differentiation, and focus (or niche).

competitive

technological

constantly emerging and evolving technologies impact business in many ways

The activities that the firm can do exceedingly well are called ______.

core competencies

A market penetration strategy involves selling ___ products to ______ customers

existing; existing ** market penetration strategies involves investing in existing customers to gain additional usage of existing products

Which of the following are internal environmental factors?

firm leadership firm structure and systems firm resources firm culture

Threat of new entrants:

how strong are entry barriers based on capital requirements or other factors?

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

market development

In order to be successful, all business-level strategy must be Blank______

market driven **hence, the term market-driven strategic planning is often used to describe the process at the corporate or strategic business unit (SBU) level of marshaling the various resources and functional areas of the firm toward a central purpose around the customer.

______ strategic planning is the process at the corporate or SBU level of marshaling the various resource and functional areas of the firm toward a central purpose around the customer.

market-driven All business-level strategy must be market-driven in order to be successful.

A document that records the marketing planning process in a useful framework is the result of ________ _________ __________ is the ongoing process of developing and implementing market-driven strategies for an organization.

marketing planning **the ongoing process of developing and implementing market-driven strategies for an organization- and the resulting document that records the marketing planning process in a useful framework is the marketing plan.

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

mission

The fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of a company's operations, products, and markets is defined by its Blank______.

mission statement

A product development strategy involves selling ______ products to ______ customers

new; existing

All firms operating within certain rules, laws, and norms of operating behavior describes which macro-level external environmental factor?

political, legal, and ethical

JetBlue having myriad regulations administered by the Federal Aviation Administration is an example of what type of macro-level external environmental factor?

political, legal, and ethical

Analysis that views SBUs and sometimes even product lines as a series of investments from which it expects maximization of returns is called ______.

portfolio analysis

Investing in new products that will increase usage from the current customer base represents which type of strategy?

product development

Which of the following is not a type of utility given by products or services?

promotion

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

situation ** the marketing manager must perform a complete situation analysis of the environment within which the marketing plan is being developed. The situation includes elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment. Internal factors include the firm's structure and systems, culture, leadership and various resources, all of which are under a firm's control. External environmental factors are those a firm must be mindful about, but has little or no direct ability to impact change

The elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment are contained in a(n)

situation analysis

The elements of the macro-level external environment within which the firm operates, its industry or competitive environment, and its internal environment are contained in a(n) ______.

situational analysis **The marketing managers must perform a complete situation analysis of the environment within which the marketing plan is being developed. The situation includes elements of the macro-level external environment within which the firm operates, its industry or competitive environment and its internal environment.

A large health products manufacturer has three distinct divisions: first aid products, oral care products, and foot care products. Each of these divisions has a specific strategy to target a specific market. These three divisions are referred to as ______.

strategic business units (SBUs) A SBU is a relatively autonomous division or organizational unit of a large company that operates independently but within the corporate umbrella, exercising control over most of the factors affecting its long-term performance.

economic

the financial conditions play a role in all marketing planning

Created by Michael Porter, Blank______ is a useful approach to bringing together and understanding the concepts of customer value, satisfaction and loyalty.

the value chain

What approach was created by Michael Porter and outlined in his classic book Competitive Advantage?

the value chain **understanding the concepts of customer value, satisfaction and loyalty is the value chain. - it serves as a means for firms to identify ways to create, communicate and deliver more customer value within a firm. The value chain concept holds that every organization represents a synthesis of activities involved in designing, producing, marketing, delivering and supporting its products. The value chain identifies 9 relevant strategic activities the organization can engage in that create/impact both sides of the value equation: benefits and costs

bargaining power of buyers

to what degree can customers affect prices or product offerings

Firm Structure and systems:

to what degree does the present organizational structure facilitate or impede successful market-driven strategic planning?

The want-satisfying power of a good or service is referred to as

utility **4 major kinds of utility exist: form, time, place and ownership Form utility is created when the firm converts raw materials into finished products that are desired by the market. The other 3 utilities- time, place and ownership- are created by marketing.

natural

the concept of environmentally friendly marketing, or green marketing

At the ______ level, marketing serves as a core driver of business strategy; at the ______ level, marketing represents the specific programs and tactics aimed at customers and other stakeholder groups.

strategic; functional Marketing (Big M) - strategic level: This is an understanding of markets, competitors and other external forces, coupled with attention to internal capabilities - which allows for a firm to successfully develop strategies for the future. marketing (little m) - functional/operational level Little m represents the specific programs and tactics aimed at customers and other stakeholder groups and includes everything from brand image, to the message sales-people and advertisements deliver, to customers service, to packaging and product features- in fact, all elements of operationalizing the marketing mix and beyond. Although these 2 levels of marketing are distinctly different in scope and activities, the common link is in the process of marketing planning. Marketing managers must be able to grasp both the big picture of strategy formulation and the details of tactical implementation.

At the firm level, a comprehensive plan stating how the organization will achieve its mission and objectives is called a(n)

strategy

At the firm level, a __________ is a comprehensive plan stating how the organization will achieve its mission and objectives.

strategy **strategy has 2 key phrases: formulation (or development) and execution. and it occurs at multiple levels in the firm: corporate level, SBU (or business level) and functional level (marketing, finance, operations, etc.)

Marketing managers must be able to grasp both the big picture of ______ formulation and the details of ______ implementation.

strategy; tactical

firm culture

successful marketing planning requires an atmosphere that includes customer orientation as a core value

If its competencies cannot be easily duplicated or usurped by competitors, firms should invest in distinctive competencies, as they offer opportunity for __________ competitive advantages.

sustainable

If its competencies cannot be easily duplicated or usurped by competitors, firms should invest in distinctive competencies, as they offer opportunity for

sustainable competitive advantage

When a distinctive competency cannot be easily duplicated or usurped by competitors in the marketplace, it is called a(n)

sustainable competitive advantage ** firms should invest in distinctive competencies, as they offer opportunity for sustainable competitive advantage in the marketplace, especially if the competencies cannot be easily duplicated or usurped by competitors.

Which of the following are macro-level external environmental factors?

technological political, legal, and ethical natural sociocultural/demographic economic