Chapter 2 Questions

Levels of Strategic Planning

1) Mission Statement 2) Corporate Strategy 3) Business-Unit Strategy 4) Marketing Strategy 5) Marketing Mix Elements (Product, Distribution, Promotion, Pricing)

SWOT analysis

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

market penetration

a marketing strategy that tries to increase market share among existing customers Ex) Coke boosted sales due to a promotion

Diversification

developing new products for new markets

Components of the strategic planning process

1) establishing an organization's mission and goals 2) develop strategies to achieve these goals 3) performs detailed analysis of its strengths and weaknesses 4) each functional area of the organization establishes its own objectives and develops strategies to achieve them

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 its marketing strategy

Mission Statement

A long-term view, or vision, of what the organization wants to become

Which of the following is NOT a component of the marketing plan?

Business Analysis

Southwest is known for its culture of "luv" and its fun-loving approach. This is an example of which of the following?

Corporate Identity

Which of the following is NOT one of the steps in strategic performance evaluation?

Establishing a timetable for implementation

strategic performance evaluation

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

Which of the following provides an overview of the entire marketing plan so that readers can quickly identify the key issues and their roles in the planning and implementation process?

Executive summary

performance evaluation

Explanation of how the company will evaluate the performance of the implemented plan

True/False Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies.

False

True/False The marketing implementation section of the marketing plan outlines how the company will achieve its objectives.

False

Product Development

Increasing sales by improving present products or developing new products for current markets Ex) Guitar maker, Fender, introduced online lessons so people learn to play and keep buying guitars

Environmental Analysis

Information about the company's current situation with respect to the marketing environment

Which of the following is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy?

Market Growth/Market Share Matrix

Which of the following competitive growth strategies strives to increase sales of current products in new markets?

Market development

The strategic planning process begins with _______.

Organizational mission and goals

Strategic Planning

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy

Core Competencies

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

When conducting a SWOT analysis, which of the following are barriers that could prevent an organization from reaching its objective?

Threats

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 Ex) PepsiCo has an SBU of Quaker`

Marketing Plan

a written document that acts as a guidebook of marketing activities for the marketing manager

implementation

an adaptive response to day-to-day issues, opportunities and unanticipated situation such as an economic slowdown that dampens sales

Corporate strategy planners are concerned with..

broad issues such as organizational culture, competition, differentiation, interrelationships among business units. and environmental and social issues

The unique symbols, personalities, and philosophies that support all corporate activities including strategic planning and marketing are best described as _______.

corporate identity

Corporate 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

market development

increasing sales of current products in new markets Ex) Arm&Hammer introduced into baking soda into new markets for carpet deodorizer, freshener for litter boxes, etc.

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, there exists a(n) _______.

market opportunity

Competitive Growth Strategies

market penetration, product development, market development, diversification

Which of the following provides a uniform marketing vision for the firm and is the basis for internal communications?

marketing plan

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _______.

mission statement

Executive Summary

one to two page synopsis of the entire marketing plan

Marketing Strategies

outline of how the company will achieve its objectives

Marketing Implementation

outline of how the company will implement its marketing strategies

market share

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

marketing plan provides a framework to..

stimulate thinking and provide strategic direction

Through the process of ____________ , a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

strategic planning

Strategic Windows

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

competitive advantage

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

A corporate strategy outlines..

the scope of the business and such considerations as resource development, competitive advantages, and overall coordination of functional areas

Market orientation should guide..

the strategic planning process