Ch.2 Strategic Planning (LearnSmart)

Who would a company rely on for input when developing the marketing plan?

Employees throughout the various departments

SWOT analysis

Evaluation of a firm's (S)trengths, (W)eaknesses, (O)ppotunities, (T)hreats

It is common for companies to make this mistake when conducting a SWOT analysis.

Failing to separate internal issues from external issues

product section of the marketing plan

detailed description of the product/service being offered, as well as any related services (warranties, guarantees) that accompany the product/service clearly addresses what its product is & what value it holds for the consumer

Within the BCG matrix, products with a small market share in an industry that has low growth rates are called _________________.

dogs

While the _______ is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.

executive summary

Charles has asked his staff to provide him with a sales forecast, expense forecast, and a break-even analysis. All three of these items are considered to be _______.

financial projections

If you wanted to understand the overall profitability of a company, you would study the _______ section of the marketing plan.

financials

Readers of a marketing plan can see the detailed estimate of an organization's profitability in the _______ section.

financials

market

group of consumers or organizations that is interested in AND able to buy a particular product

market segments

groups of consumers who have shared characteristics and similar product needs

Quality marketing objectives have three basic characteristics. Making sure that your objectives are ______________ helps to ensure that you do not provide unattainable goals and diminish the motivation of those working for you.

realistic

market development

selling existing goods and services to new customers e.g., different gender, age group, education level

A market development strategy can be defined as _______.

selling existing products to new customers

market penetration

selling more of existing goods and services to existing customers designed to encourage existing customers to buy more of a product each time they visit a store or to more frequently buy from the store

The Boston Consulting Group matrix is a tool used to describe _______.

the current market

sales forecast

the financial projection that estimates how many units of a product a company expects to sell during a specific time period

target market

the group of customers toward which an organization has decided to direct its marketing efforts

Within the BCG matrix, which type of product most likely falls under the category known as question marks?

New products

elevator pitch

1-2 minute opportunity to market yourself and share the main points of your work

What are the 3 subsections of a situation analysis?

Market summary, SWOT analysis, competition analysis

contingency planning

actions the company will take if the initial marketing strategy falls short of expected results (backup plan)

A product that maintains a large market share in the industry even though that industry does not have a high growth rate is considered to be a _______.

cash cow

marketing strategy

lists the actions the firm must take to accomplish the marketing objectives it established in its mission statement & strategic planning

competition analysis

lists the firm's direct (and indirect) competitors

Martin wants to increase sales at his shoe store by giving his customers the opportunity to buy another pair of shoes for half-price for each pair of shoes they buy. This is an example of the marketing growth strategy known as _________________________.

market penetration

As a component of the situation analysis, a __________________________ focuses on the current state of the market to which the firm will sell its products.

market summary

A firm is developing plans for its marketing department in an effort to meet its objectives. It is developing _______.

strategic planning

positioning

the activities a firm undertakes to create a certain perception of its product in the eyes of the target market

competitive advantage

when customers perceive that it has more value than the other products in its category

A marketing strategy includes decisions about which of the following? (Check all that apply.) A. Strategic direction B. Positioning C. Segmentation D. Marketing mix E. Target markets F. Competition G. Leadership roles

A. Strategic direction B. Positioning C. Segmentation D. Marketing mix E. Target markets

Under the controls section of the marketing plan, which area provides a detailed account of how the specific actions of the marketing plan will be carried out and who will be responsible for those activities?

Implementation

Robert owns a tennis apparel shop and is preparing a market summary. How can Robert make sure the competition section of his summary is most effective?

It should list both direct and indirect competitors.

What primary strategic planning tool do companies rely on to direct and coordinate marketing efforts?

Marketing plan

A strategic plan addresses an organization's plan for which key functional areas?

Marketing, Human resources, finance, and risk management

Which characteristic of a marketing objective allows a marketer to understand if their strategies are working?

Measurable

What tool does a firm use to ensure that the business never strays too far from its core goals and values?

Mission statement

Which component of the marketing plan allows a company to understand information about their current business and then make strategic decisions about how to best move forward?

Situation analysis

Why should a goal be realistic?

So that marketers do not demotivate their organizations with unattainable goals. & To show those reading the market plan that it is a serious, thoughtful document.

Why should a goal be measurable?

So that marketers know if their strategies are working, and what specific return are they making on their investment.

Which section of the marketing plan would the sales forecast be placed in?

The financials section since it is the section reserved for stating the overall profitability of the company

Quality marketing objectives have 3 basic characteristics:

They are: 1. specific 2. measurable 3. realistic

Why should a goal be specific?

Vague marketing objectives lead to a lack of focus and accountability. A more specific objective provides much better direction to the marketing decisions that will be made.

Karen read an article in the newspaper that said Fresh Farms provided the safest, pesticide-free vegetables in the state. She decided that from now on, she would only buy Fresh Farms products. In this instance, when it comes to Karen as a customer, Fresh Farms is enjoying ____________________.

a competitive advantage

A company's long-term purpose can be identified in a concise format by creating _______.

a mission statement

expense forecast

an estimate of the costs a company will incur to create, communicate and deliver the product

weakness

an internal limitation that may prevent or disrupt a firm's ability to meet its stated objectives

Apple's MacBook has a consistent market share and steady revenue. According to the BCG matrix, the MacBook is a _______ for the company.

cash cow

product development

creating new goods and services for existing markets

market summary

describes the current state of the market

When a company has a product that is considered a dog according to the BCG matrix, the company would be wise to _______.

discontinue the product

Jenna is a florist and needs to determine how to get 1,000 flowers to the three weddings she is responsible for this weekend. She is concerned with the _______ strategy of the marketing plan.

distribution

Staff members would consult the _______ section of the marketing plan when they want to quickly understand the basic ideas and strategies of the plan.

executive summary

Threats

external consideration within the SWOT analysis that may challenge a firm's short- and long--term performance

Opportunities

external factors that a firm may be able to capitalize on to meet or exceed its stated objectives

mission statement

goals and values of the company

The primary strategic planning tool used to direct and coordinate the activities marketers will undertake to execute the right marketing mix strategies to maximize success is the _______ plan.

marketing

The _______ is used to guide the analysis, implementation, and control of the firm's marketing strategy.

marketing plan

The specific actions a firm must take in order to accomplish its overall marketing objectives are laid out in its ______________.

marketing strategy

Marketers want to understand what the specific return will be on a marketing investment. To know if their strategies are working, it is important that the marketing objective be ________________________.

measurable

The purpose of a(n) ________________ is to provide employees with a shared sense of ambition, direction, and opportunity.

mission statement

diversification

offering new goods and services to attract new customers e.g., Disney sells vacation properties, books, apparel, animated movies & owns TV channels

It would be common practice for a firm to undertake the process of strategic planning _______.

on a continual basis

External considerations

opportunities and threats

Paula owns a gift shop where every item sold is made from recycled products. All of her marketing efforts are aimed at making her target market feel good about purchasing recycled products and helping the environment. The efforts Paula makes to create a certain perception of her products in the eyes of her target market are referred to as _______.

positioning

When Budweiser uses the slogan "King of Beers" to promote its beer, the firm is trying to create a perception in the eyes of its target market that the Budweiser product is superior to its competitors. In doing so, Budweiser is _______ its product.

positioning

The _______ section of the marketing plan consists of a detailed description of the article being offered.

product

A cash cow is defined in the BCG matrix as _______.

products that have a large market share in an industry with low growth rates

Sam has been asked to come up with ways to showcase the value of his company's newest products. He has determined that a public relations campaign is the best method to use. Sam's job is focusing on the marketing mix element known as ___________________.

promotion

executive summary

provides a synopsis of the marketing plan's main points

If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a __________________.

situation analysis

Firms can greatly increase the likelihood of success if they carefully define their objectives and develop a plan for meeting those objectives. This activity is referred to as _______.

strategic planning

Internal considerations

strengths and weaknesses

market segmentation

the process of dividing a market into smaller groups, based on meaningfully shared characteristics

strategy

the set of actions taken to accomplish organizational objectives

According to your text, which of the following conditions might cause a firm to adjust its strategic plan?

Changing customer needs, Competitive threats

While Coca-Cola originally only produced soda products, it now also owns Minute Maid orange juice and a variety of other companies. By seeking to attract new customers by offering new products unrelated to soda, which type of marketing growth strategy does this exemplify?

Diversification

The mission statement should: (3 factors)

1. Be focused on a limited number of goals. 2. Be customer-oriented, focused on satisfying basic customer needs and wants. 3. Capture a shared purpose & provide motivation for employees.

Identify the four basic categories of marketing growth strategies.

1. Market penetration 2. Product development 3. Market development 4. Diversification

What are the three characteristics of a quality marketing objective?

1. Specific 2. Measurable 3. Realistic

5 components of a marketing plan

1. executive summary 2. situation analysis 3. marketing strategy 4. financials section 5. controls section

While each company may develop a marketing plan in a different way, there are usually _______ basic steps in every marketing plan.

5 (executive summary, situation analysis, marketing strategy, financials section, controls section)

Which items are part of a thorough market summary? (Check all that apply.) A. An analysis of important marketplace trends B. Potential sales through international expansion C. Listing of all the firm's products D. International growth opportunities E. Break-even analysis calculations

A. An analysis of important marketplace trends B. Potential sales through international expansion D. International growth opportunities

Trisha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis? (Check all that apply.) A. Marketplace trends B. Market conditions C. Current competition D. Financial projections

A. Marketplace trends B. Market conditions C. Current competition

Jennifer's son has asked for a new gaming system for his birthday, but Jennifer is reluctant to purchase it because he received his current system just last year. Her son says the new system has an enhanced feature that makes the colors even brighter and that is why he wants it. The enhanced feature found on the new system is an example of which marketing growth strategy?

Product development

Portia was asked to develop a medium-term marketing objective for the department. She came up with the following: "The department needs to increase ad revenues by 10% over the next quarter and can do this by developing relationships with Clorox, Johnson & Johnson, and Renuzit." Which aspect of developing a quality marketing objective has Portia most likely accomplished?

Specific

Kelly owns a cleaning service. Which of the following would demonstrate a weakness within her company that might show up on a SWOT analysis?

cleaning crew can only work two days a week.

A good mission statement should be oriented around the _______.

customer

Competitors of McDonald's can be classified two ways. Restaurants like Wendy's and Burger King are its ____________ competitors, while Subway and Taco Bell would be its _____________ competitors.

direct; indirect

The VHS tape would be considered a _______ within the BCG matrix because this is a product category in which no firm has a large market share and the growth rate is basically gone.

dog

break-even analysis

estimate of how much a company needs to sell to cover expenses (to break even)

When a company wants to determine how much it will cost to create a new product, it should complete a(n) _____________ forecast.

expense

When a firm accomplishes a successful marketing strategy, it can lead to __________, ___________, ___________.

higher profits, stronger brands, larger market share

Organizational structure is a key component within the controls section of the marketing plan because it _______.

holds specific departments and individuals responsible for the parts of the plan under their control

implementation

provides a detailed account of how the specific actions of the marketing plan will be carried out & who will be responsible for doing so

Kevin's company has recently introduced a notepad computer that will require a significant marketing investment to promote it against the widely-popular iPad. The future of Kevin's notepad computer is uncertain and would be categorized as a _______ in the BCG matrix.

question mark

No one knows if diet food and soda will boom in the future. Jennie's company wants to add a line of diet snacks. These products would be considered _______.

question marks

When marketers use the BCG matrix, they use the term _______________________ when classifying products that have a small market share in a high-growth industry.

question marks