MKTG 321 Ch. 2

A marketing plan

provides a framework for implementing and controlling marketing activities.

Question Marks

"problem children" have a small share of a going market and generally require a large amount of cash to build market share. (racing bikes)

____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

Corporate

Resource deployment and coordination of functional areas of business are determined by ___

Corporate Strategy

Cash cows

Have a dominant share of the market but low prospects for growth; typically they generate more cash than is required to maintain market share.

Which of the following is a characteristic of a marketing objective?

It is consistent with both business-unit and corporate strategy.

Components of the Strategic Planning Process

Organizational Mission Goals--> Develop Corporate & Business-unit strategies--> Analysis of Strengths and weaknesses/ Opportunities and threats--> Marketing, Production, Finance, and HR make objectives

Sayed's employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayed so that he can now develop an implementation plan. Sayed's company will most likely end up with which type of strategy?

Realized

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart

Sustainable competitive

marketing strategy

a PLAN of action for identifying and analyzing a target market and DEVELOPING a marketing mix to meet the needs of that market

market opportunity

a combination of circumstances and timing that permits an organization to take action to reach a particular target market

strategic business unit (sbu)

a division, product line, or other profit center within the parent company

market

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

market growth/ market share matrix

a helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining strategy

mission statement

a longterm view, or vision, of what the organization wants to become

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

a market opportunity

marketing objective

a statement of what is to be accomplished through marketing activities

corporate strategy

a strategy that determines the means for utilizing resources in the various functional areas to reach the organizations goals

decentralized organization

a structure in which decision making authority is delegated as far down the chain of command as possible

centralized organization

a structure in which top-level managers delegate little authority to lower levels *M0st are highly generalized*

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

a target market

marketing plan

a written document that specifies the activities to be performed to implement and control the organization's marketing strategies

performance standard

an EXPECTED level of performance against which actual performance can be compared

sustainable competitive advantage

an advantage that the competition cannot copy in the foreseeable future

marketing cost analysis

analysis of costs to determine which are associated with the specific marketing efforts

sale analysis

analysis of sales figures to evaluate a firm's performance Most common method of evaluation

Business decisions made in creating a market mix

are only as good as the organization's understanding of the needs of the target market

SWOT analysis

assessment of an organization's strengths, weaknesses, opportunities, and threats

Correct 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 _____

cash cow

In a traditional organization, marketing decisions are likely to be

centralized at the top levels of the organization

AppleTM has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for AppleTM, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

strategic performance evaluation

establishing performance standards, measuring actual performance, comparing actual performance with establish standards, and modifying the strategy if needed

One way that Honda evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is

evaluating actual performance

Dogs

have a subordinate share of the market and low prospects for growth. these products are often found in established markets. (CD players are now dogs)

Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.

her customers

Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.

internal marketing

Effectiveness

is the degree to which long-term customer relationships help achieve an organization's objectives

Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.

market opportunity

Morris Business Products Co. distributes its business supply products through direct sales personnel. Recently, the company has established a monthly sales quota of $150,000 for each sales representative. This is a(n)

performance standard

strategic planning

process of establishing an organizational MISSION and formulating GOALS, corporate strategy, marketing objectives, and marketing strategy

strategic marketing management

process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently Overall Goal: to facilitate highly desirable customer relationships and to minimize the costs of doing so

Stars

products with a dominant share of the market and good prospects for growth. They use more cash than they generate to finance growth, add capacity and increase market share

Efficiency

refers to minimizing the resources an organization uses to achieve a specific level of desired customer relationships

Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning

strategic windows

temporary periods of optimal fit between the key requirements of a market and particular capabilities of a company in the market

late-mover advantage

the ability of a later market entrants to achieve longterm competitive advantages by not being the first to offer a certain product in a marketplace. Can learn from First person's mistakes.

first-mover advantage

the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

market share

the percentage of a market that actually buys a specific product from a particular company

marketing implementation

the process of putting marketing strategies INTO ACTION

competitive advantage

the result of a company matching a core competency to opportunities it has discovered in the marketplace

core competencies

things a company does extremely well, which sometimes give it an advantage over its competition