marketing chapter 2

what does a market segment consist of?

a group of consumers who respond to the marketing effort in the same way

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

product

goods and services combination the company offers to the target market → acceptability

in determining which customers to serve, a company engages in which two marketing activities?

segmentation and targeting

growth share matrix

classifies all SBUs; a portfolio planning method that evaluates a company's SBUs in terms of market growth rate and relative market share

place

company activities that make up the the product avaliable to target customers → accessibility

market development

company growth by identifying and developing new market segments for the current company products

the four P's of the marketing mix have been redefined in buyer's terms as the four A's. Product design influences__________, price effects__________, places affects_________, and promotion effects______________?

acceptability, affordability, accessibility, awareness

what are the main components of a marketing plan?

an executive summary, situation analysis, objectives, marketing strategy, action programs, budget and controls, and threats and opportunities

SWOT analysis

an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

the BCG matrix classifies products which have high market share in a low growth market as________

cash cows

market penetration

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

product development

company growth by offering modified or new products to current markets

diversification

company growth through starting up or buying businesses outside of its current products and markets

which of the following is not one of the five marketing management functions?

customer service

to improve the performance of the________, many companies today are partnering with other members of the supply chain-suppliers, distributors, and customers

customer value delivery network

what does a company do to start the strategic planning process?

define its overall purpose and mission

effective positioning is based on________

differentiation

when a firm starts up or buys a business outside of its current product line and markets, it is pursing which growth strategy?

diversification

strategically a company may phase out or sell an SBU. This is known as________

divesting

marketing control

evaluating results and taking corrective action to ensure that the objectives are attained

when under armor expended its current products into global markets, it was pursuing which growth strategy?

market development

in which way does increasing customers satisfaction disrupt the internal value chain?

it can increase production costs, increase inventories, and disrupt production

strategic business units --> SBUs

key businesses that makeup the company, so a company division, product line within a division or a single brand

portfolio analysis

management evaluates the products and businesses that make up the company

mission statements should be defined in terms of satisfying basic customer needs. in other words, they should be__________

market oriented

to grow sales, Under armor increases its spending on adverting by 35 percent to increases sales in its current markets. which growth strategy does this represent?

market penetration

som retailers, such as Dollar Store, Dollar Tree and Family Dollar, profitably focus on buyers with modest means. this is an example of?

market targeting

which of the following is a true statement regarding managing and measuring marketing return on investment (ROI)?

marketers are increasingly using measures such as customer acquisition and retention, customer engagement, and customer equity as measures of ROI

the demand for organic produce is growing. green acres farms grows only organic vegetables. in SWOT analysis, the rising demand for organic produce would be a______________ for Green Acres Farms, and the fact that they grow only organic vegetables is a_____________?

opportunity; strength

implementation

process that turns marketing plans into marketing actions to accomplish strategic marketing

one key role marketing plays in a company's strategic planning is to

provide a guiding philosophy

promotion

refers to activities that communicate the merits of the product and persuade target → awareness

what are the two measurements used in the BCG matrix to classify strategic business units?

relative market share; market growth share

after defining its mission, the next step in strategic planning is to_________

set company objectives and goals

define 4 types of SBUs

stars: are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. cash cows: Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. question marks: Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. dogs: Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

according to the growth share matrix_________ are high-growth products. when the growth slows these products become________

stars; cash cows

in portfolio analysis, a company must identify___________, which are key businesses that make up the company

strategic business units

price

the amount of money customers must pay to obtain the product → affordability

business portfolio

the collection of businesses and products that makeup the company and 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 mix

the set of tactical marketing tools (product, price, place, promotion) that a firm blends to produce the response it wants in the target market

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

what is the overall goal of marketing strategy?

to create customer value and build profitable relationships