Ch. 2 MKTG Copy

marketing strategy

A firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.

related diversification

A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.

metric

A measuring system that quantifies a trend, dynamic, or characteristic.

customer excellence

Involves a focus on retaining loyal customers and excellent customer service.

market positioning

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

3. During the _____era, firms had excess capacity and used personal selling and advertising to generate customers.

b. sales-oriented

10. A SWOT analysis is part of a firm's situation audit. SWOT is an acronym for

d. strengths, weaknesses, opportunities, and threats.

20. When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?

a. planning

6. Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing

a. all parties to an exchange should be satisfied.

mission statement

A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?

strategic business unit (SBU)

A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.

market segment

A group of consumers who respond similarly to a firm's marketing efforts.

market penetration strategy

A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.

market development strategy

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

product development strategy

A growth strategy that offers a new product or service to a firm's current target market.

diversification strategy

A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.

unrelated diversification

A growth strategy whereby a new business lacks any common elements with the present business.

relative market share

A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.

marketing plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.

products

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

14. Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase_____marketing.

d. C2C

13. Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?

d. implement marketing mix and resources

11. Which of the following is a core aspect of marketing?

d. making product, place, promotion, and price decisions

product line

Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.

operational excellence

Involves a firm's focus on efficient operations and excellent supply chain management.

product excellence

Involves a focus on achieving high quality products; effective branding and positioning is key.

sustainable competitive advantage

Something the firm can persistently do better than its competitors.

8. For many years, southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airliines have online ticketing. These examples suggest that

a. no single strategy is likely to be sufficient to build a sustainable competitive advantage.

2. When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflect the views that were popular in which era of the evolution of marketing?

a. production-oriented

7. Of the five steps to the strategic marketing planning process, which step usually comes first?

b. Define the business mission.

19. Marketers involved in value-oriented marketing are constantly balancing

c. customer benefits with costs of their offerings.

15. The evolution of marketing progressed along the following continuum:

c. production, sales, marketing, value-based marketing.

9. Marketing efforts designed to get the product or service to the right customer, when that customer wants it are called

c. supply chain management.

17. Chuck heard his unit described as a dog. He later found out that meant

c. the products in his unit are in a low-growth market with low market share and will be phased out.

4. The first objective in the "evaluate performance" phase of the marketing planning process is to

d. review implementation programs and results using metrics.

5. Heather has been assessing a number of her firm's products using the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine:

d. the product's relative market share.

12. In 2006, Ford Motor Company announced it would severly cut back automobile production. For parts companies supply Ford Motor, this represented a(n)

d. threat.

situation analysis

Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strength and weakness and opportunities and threats

16. Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes

b. the value of their time and energy.

market segmentation

The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.

target marketing/targeting

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

STP

The processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.

market share

Percentage of a market accounted for by a specific entity.

market growth rate

The annual rate of growth of the specific market in which the product competes.

control phase

The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.

planning phase

The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.

implementation phase

The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities

b. that build on their strengths relative to those of their competitors.

18. A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four Ps, action plans, and pro forma financial statements is known as

c. a situational analysis.