Marketing 303 Chapter 2

A value chain is best defined as __________.

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

If Google wrote its mission​ statement, what would it be advised to​ write? The mission of Google is​ __________.

to give people a window into the​ world's information, wherever it might be found

What is the name for the process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?

Positioning

With four categories of SBUs and products arrayed on the Boston Consulting Group​ share-growth matrix, the manager needs to determine how to manage each of them. If the firm decides to take​ short-term cash flow from the brand or​ SBU, despite​ long-term consequences, it is said to be in the​ ____________ mode.

Harvest

Although strategic planning models like the Boston Consulting Group​ share-growth matrix are valuable tools for​ managers, they have limitations. Which of the following is an advantage of using the Boston Consulting Group​ share-growth matrix?

Identifying which SBUs require more resources and which generate revenue to fund other SBUs

Managing the marketing process requires four marketing management​ functions: analysis,​ planning, ______________, and control.

Implementation

If Apple introduced a marketing strategy designed to encourage new groupslong dash—such as seniorslong dash—to visit its stores for the first​ time, this would be an example of a​ ________ growth strategy.

Market development

__________ achieves company growth by identifying and developing new market segments for current company products.

Market development

The Boston Consulting Group​ growth-share matrix classifies SBUs the firm has in two​ dimensions; the first dimension is​ _______________, which measures market attractiveness for the entire industry on the vertical axis.

Market growth rate

__________ achieves company growth by increasing sales of current products to current market segments without changing the product.

Market penetration

__________ involves measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that the objectives are achieved.

Marketing control

__________ refers to turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Marketing implementation

__________ is the net return from a marketing investment divided by the costs of the marketing investment.

Marketing return on investment

__________________ is(are) the measurement of the profits generated by investments in marketing activities.

Marketing return on investment​ (or marketing​ ROI)

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships is __________.

Marketing strategy

​________ represents the marketing logic by which the company hopes to create customer value and achieve​ profitable, mutually beneficial relationships.

Marketing strategy

The first step of the strategic planning process is to identify the​ company's ________, an explicit statement that clearly explains the​ organization's purpose and what it seeks to accomplish.

Mission

Which of the following is a statement of the organization's purpose - what it wants to accomplish in the larger environment?

Mission statement

If a firm such as​ McDonald's wanted to expand its business by adding​ locations, redesigning​ menus, and adding​ services, it would be realizing growth through​ ____________.

Penetration

A key limitation of BCG and other formal approaches to​ ________ planning is that they focus on classifying current businesses and provide little advice for future planning.

Portfolio

Marketing managers have in their control four variables known as the four Ps. These four variables do not include the​ __________.

Portfolio

A major activity in strategic planning is​ ________ analysis, whereby management evaluates the products and lines of business that make up the company.

Business portfolio

How does product development achieve company growth?

By offering modified or new products to current market segments

A member of top​ management, the​ _____, is the champion of the​ customer's cause and heads up the​ company's entire marketing​ operation, representing marketing on the​ company's top management team.

CMO

The​ growth-share matrix defines four types of SBUs. The​ low-growth, high-share business or​ products, classified as​ _________, typically need less investment to hold their market share.​ Generally, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.

Cash cow

If a firm like​ McDonald's wanted to expand its business by acquiring a company such as Chevron gas​ stations, it would be realizing growth through​ ____________.

Diversification

__________ achieves company growth by starting up or acquiring businesses outside the company's current products and markets.

Diversification

What is market segmentation?

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Although modern marketing departments can be arranged in several​ ways, the most common form of marketing organization is the​ ________ organization, in which different marketing activities are headed by a specialist in any given area.

Functional

Designing a business portfolio involves finding businesses and products the company should consider in the future. Companies need growth if they are to compete more​ effectively, satisfy their​ stakeholders, and attract top talent. At the same​ time, a firm must be careful not to make growth itself an objective. The​ company's objective must be to manage​ __________.

Profitable growth

The growth-share matrix defines four types of SBUs: __________ are low-share business units in high-growth markets.

Question marks

The​ growth-share matrix defines four types of SBUs. The​ high-growth, low-share businesses or​ products, which typically need heavy investments to finance their rapid​ growth, are called​ ______________.

Question marks

The Boston Consulting Group​ growth-share matrix classifies SBUs the firm has in two dimensions. The horizontal dimension consists of the​ _______________, which measures the​ firm's strength in the market.

Relative market share

The process of dividing a broad market into distinct groups of buyers who have different​ needs, characteristics, or​ behaviors, and who might require separate products or marketing​ programs, is known as​ ________.

Segmentation

The​ growth-share matrix defines four types of SBUs.​ High-growth, high-share businesses or products are called​ ______________.

Stars

__________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Strategic planning

There are two steps to business portfolio planning.​ First, the company analyzes its current business portfolio and determines which businesses should receive​ more, less, or no investment. Which of the following is the second​ step?

The organization must shape the future portfolio by developing strategies for growth and downsizing.

What is the marketing mix?

The set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

Managing the marketing function should begin with a thorough situation analysis of the​ firm's internal and external​ environments, including company​ strengths, weaknesses,​ opportunities, and​ ________.

Threats

After determining the​ market-oriented mission, what is the next step in the process of strategic​ planning?

Turning the mission into detailed supporting objectives that guide the entire company

Each company department can be thought of as a link in the​ company's internal​ ________.

Value chain

Competition no longer takes place only between individual rivals.​ Rather, it takes place between the​ ________ networks created by these competitors.

Value delivery

A __________ consists of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.

Value delivery network

Astute marketers practice partner relationship management and must work closely with partners in other company departments to form an effective internal value chain that serves customers.​ Additionally, they must partner effectively with other companies in the marketing system to form a competitively superior​ _____________________.

Value delivery network

A SWOT analysis is best described as __________.

an overall evaluation of the company's strengths, weaknesses, opportunities, and threats

The growth-share matrix defines four types of SBUs: Stars are __________.

high-growth, high-share businesses or products

When the marketing department works to improve customer​ satisfaction, it can cause other departments to decrease their job performance. When marketing tries to improve customer​ satisfaction, it may result in​ __________.

increased purchasing​ costs, disrupted production​ schedules, and increased inventories

The growth-share matrix defines four types of SBUs: Cash cows are __________.

low-growth, high-share businesses or products

The growth-share matrix defines four types of SBUs: Dogs are __________.

low-growth, low-share businesses and products

Once a marketing plan is​ written, the manager has to convert the plan into actions that actually accomplish the strategic marketing objectives. The process of​ ______________________ addresses the​ who, where,​ when, and how of the marketing plan.

marketing implementation

A​ ____________________ is a statement of the​ organization's purposelong dash—what it wants to accomplish in the larger environment.

mission statement

Companies know that they cannot profitably serve all consumers in a given​ market, at least not all consumers in a uniform way. Most firms are in a situation to serve some portions of the market better than​ others, and they undertake four steps in order to make that effective. These steps are as follows​ (placed in sequential​ order): ____________________.

segmentation, market​ targeting, differentiation, and positioning

The organization needs to turn its mission statement into detailed supporting objectives for each level of management. The next step after setting the mission statement is to​ ____________________________.

set company objectives and goals

More companies today are partnering with other members of the supply chain. These partnerships include​ __________ and they improve the performance of the customer value delivery network.

suppliers, distributors, and customers

SWOT analysis is an integral part of the first stage of the market​ process, which is analysis. The parts of the SWOT analysis that apply to external elements​ are___________ and​ __________.

​opportunities; threats