Marketing Chapter 2
Konica/Minolta hopes to create customer value through its mission, strategic goals and objectives, marketing mix, and other marketing tools. This collective effort is known as Konica/Minolta's ____________________. a) market targeting b) market differentiation c) marketing strategy d) market segmentation e) marketing mix
c
marketing strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. made up of four steps (market segmentation, market targeting, differentiation, and positioning)
After defining its mission, the next step in strategic planning is to __________.
set company goals and objectives
Markteting return on investment (ROI)
the net return from a marketing investment divided by the costs of the marketing investment.
Business Portfolio
the collection of businesses and products that make up the company. best fits the company's strengths and weaknesses to opportunities in the environment
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
Marketing Implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
promotion
__________ refers to activities that communicate the merits of the product and persuade target customers to buy it.
To create and capture customer value, companies must engage the first step of the marketing process, which is __________.
Portfolio
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
SWOT analysis
An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
opportunities
In SWOT analyses, the favourable factors or trends in the external environment that the company may be able to exploit to its advantage are referred to as __________.
What does a company do to start the strategic planning process?
Define its overall purpose and mission
strategic business units
In portfolio analysis, a company must identify __________, which are key businesses that make up the company.
differentiation
Effective positioning is based on __________.
Prior to changing its product offerings and realigning its business units, managers at Konica/Minolta most likely first performed which of the following to determine those units that were profitable and those that should be phased out or realigned? a) perform a portfolio analysis b) define the company mission c) set company goals d) set company objectives e) create specific marketing strategies
a
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
market targeting
Some retailers, such as the Dollar Store, Dollar Tree, and Family Dollar, profitably focus on buyers with modest means. This is an example of __________.
divesting
Strategically, a company may phase out or sell an SBU. This is known as __________.
cash cows
The BCG matrix classifies products which have a high market share in a low growth market as __________.
functional organization
The most common form of marketing organization is the ________________, under which different marketing activities are headed by a functional specialistlong dash a sales manager, an advertising manager, a marketing research manager, a customer service manager, or a new product manager.
What is the overall focus of strategic planning?
To create a game plan for long-run survival and growth in consideration of changing marketing opportunities
A group of consumers who respond to the marketing effort in the same way
What does a market segment consist of?
to create customer value and build profitable relationships
What is the overall goal of marketing strategy?
diversification
When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategy?
customer service
Which of the following is not one of the five marketing management functions?
low growth, high share
Within the growth-share matrix, "cash cows" are __________.
Konica/Minolta focuses one of its business units on medical and healthcare groups. These groups make up on of Konica/Minolta's ___________________. a) market segment b) positioning c) differentiation d) marketing mix e) market analysis
a
market penetration
a marketing strategy that tries to increase market share among existing customers without changing the product. In its current product lines
value delivery network
a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value. Competition takes place between entire value delivery network
Growth-share matrix
a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate (vertical) and relative market share (horizontal). Defines four types: Stars, cash cows, dogs, question marks
Product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment
Differentiation
actually differentiating the market offering to create superior customer value
Kevin Kern described Konica/Minolta's use of commercials, newspapers, social media, and other media to control the marketing message. Which marketing concept was he referring to? a) company objectives and goals b) marketing mix c) product development d) diversification e) marketing strategy
b
market development
company growth by identifying and developing new market segments for current company products (UA reviewing new demographic markets, new geographical markets)
product development
company growth by offering modified or new products to current market segments (UA added under armour speed form line
Diversification
company growth through starting up or acquiring businesses outside the company's current products and markets (Under armour partnering with MapMyFItness)
To improve the performance of the __________, many companies today are partnering with other members of the supply chainlong dash suppliers, distributors, and customers.
customer value delivery network
Under the previous CEO, Konica/Minolta's management determined it was time to invest in _______________ by offering new products to the technology market. a) diversification b) partner relationship management c) market penetration d) product development e) market development
d
Market Targeting
evaluating each market segment's attractiveness and selecting one or more segments to enter
When Under Armour expanded its current products into global markets, it was pursuing which growth strategy?
market development
marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved. Four steps: (Sets specific marketing goals, then measures its performance, evaluates causes of any differences between exp and actual performance, finally mgmt takes corrective action to close gaps btwen goals and performance)
The demand for organic produce is growing. Green Acres Farms grows only organic vegetables. In a SWOT analysis, the rising demand for organic produce would be a(n) __________ for Green Acres Farms, and the fact that they grow only organic vegetables is a(n) __________.
opportunity, strength
portfolio analysis
the process by which management evaluates the products and businesses that make up the company. company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones
Value Chain
the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
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