Chapter 2

The best business portfolio is the one that... A.) Provides the greatest opportunity for increasing profits B.) entices customers to purchase even more products from the company C.) best fits the company's strengths and weaknesses to opportunities in the enviro D.) allows the company to decrease its overall costs E.) ensures that the company will realize an increased share of market.

C.

Which of the following is true with regard to strategic planning? A.) The strategic plan is a statement of an orgs.'s purpose B.) A strategic plan deals with a company's short term goals C.) The focus of strategic planning is to define a game plan for long-run survival and growth D.) At the corp. level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company E.) strategic planning involves identifying segments of consumers with identical preferences

C.

Market segmentation can be best described as the process of...

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

The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the perf. of the entire system is known as the ....

Marketing Mix

Alpha Motors offers "Green automobiles for a greener world." This refers to the _____ of Alpha automobiles

Position

Diversification

buying other businesses with other products and markets exp. Amazon and whole foods

Business portfolio

collection of businesses and products that make up company -current investments -future growth and downsizing

marketing strategy

company decides which customers to serve (targeting) and how (positioning).

integrated marketing mix

determines FOUR P's: -product -price -place -promotion

Strategic planning

dev./maintaining organizations fit between goals, capabilities, and changing market -involves adapting to take advantage of opportunities in changing environment -defining purpose/mission > supporting objectives > what products to invest and support

market segmentation

division of market into distinct groups of buyers with specific needs exp. car market= buyers for looks versus buyers for price.

marketing mix

factors to influence the demand for product (FOUR P'S)

market development

identifying and dev. new markets for products -new age groups -different countries

market penetration

making more sales by adding new stores while selling same product

Portfolio analysis

management evaluates products and company

Product developmet

modifying products into new categories exp: shoes = running, basketball, volleyball

Mission statement

organization's purpose

market positioning

product position against other competing products

Downsizing

reduce products that are unprofitable why? -lacks experience -environment changes -age

market targeting

selecting type of market