Chapter 2

What is a market share related to an SBU?

% of market that buys a specific product from a particular company

Wheat is SBU?

A division, product line or other profit center within the parent company. Each unit sells to well-defined customer group and competitors. Revenues, costs investments, and strategic plans can be separated the parent company and evaluated.

What is SWOT analysis?

A marketing tool to assess an organization's strengths, weaknesses, opportunities, and threats

What are specific advantages of being a first mover?

Build's reputation as market leader Competition free Brand loyalty Patents

What is a market opportunity?

Combo of circumstances and timing that permits an organization to take action to reach a target market.

What is corporate identity?

Corporation's unique symbols, personalities and philosophies

What is the strategic planning process?

Establishing a mission w/ goals, corporate strategy & marketing techniques

What are opportunities and threats?

External Factors

What are the disadvantages of being a late mover?

First movers may have patents

What are fist mover risks?

High cost of creating a new product Early sales growth may not be high Failure is very high

What are strengths and weaknesses?

Internal Factors

What is the late mover advantage?

Later entry companies to get long term market advantage by not being the first to offer a product

Wheat are the advantages of being a late mover?

Learn from first mover's mistakes & adapt Lower initial product costs More certainty of success

What is effectiveness?

Long term customer relationships that help achieve an organization's objective

How do you manage a corporate identity?

Maintaining image, broadcasting goals, implementing identity

What is efficiency?

Minimizing resources needed to reach a desire customer oriented goal

What is core competency?

Something a company does extremely well and may give a company a competitive advantage

What are the four parts of the marketing share matrix?

Star-Dominant market share & growth prospect Question Mark-Small share of growing market, a lot of capital required Cash Cow-Dominant market share, low growth prospect Dog- Subordinate market share & low growth prospect

What are strategic windows?

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

What is a competitive advantage?

The place where opportunity, core competency, and strategic windows meet

What is strategic marketing management?

The process of planning, implementing and evaluating the performance of marketing activities both effectively and efficiently

What is the first mover advantage?

When innovative companies gain long term advantages by being the first to offer a certain product in a market

What is a marketing plan?

a written document detailing activities to be performed to implement and control marketing actions.

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____ a dog a cash cow a question a star

cash cow

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers. competitive advantage strategic window market requirement market opportunity

competitive advantage

What are broad corporate strategy issues?

corporate culture competition differentiation diversification interrelationships among business units environmental and social issues-method

When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of marketing objective strategic plan marketing strategy core competency goal

marketing objective

What are the levels of strategic planning?

mission statement --> corporate strategy --> business unit strategy --> marketing strategy --> marketing mix elements

Which of the following is not a component of a marketing plan? product environmental analysis marketing strategy executive summary marketing implementation

product

The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____. specifying how they will achieve their marketing objective how they will address the competition's prices coming up with a quantitative measure for their objective developing a qualitative measure for their objective assessing their weaknesses

specifying how they will achieve their marketing objective

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart. sustainable competitive advantage sustainable control sustainable research objective

sustainable competitive advantage