Chapter 2 (Marketing)

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

Market

-A group of individuals and/or organization that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

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

Corporate Strategy

-A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals

According to the Boston Consulting Group, question marks are characterized as products _______. a.having a small share of a growing market and requiring large amounts of cash to build market share b.generating more cash than is required to maintain market share c.encompassing the greatest number of product categories d.existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost

-A: having a small share of a growing market and requiring large amounts of cash to build market share -Question marks, sometimes called "problem children," have a small share of a growing market and generally require a large amount of cash to build market share.

Menard's advertising slogan and jingle, "Save Big Money at Menards" is part of its _______ which supports all corporate activities including marketing. a. marketing mix b. corporate identity c. marketing plan d. organizational structure

-B: Corporate Identity -Corporate identity includes a company's unique symbols, personalities, and philosophies which support all corporate activities including marketing.

Why is sales analysis a common method of evaluation? a.Sales data allow a marketer to allocate the firm's marketing resources better in the future. b.Sales data are readily available and can reflect the target market's reactions to a marketing mix. c.Sales data lets a company evaluate the performance of marketing strategy by comparing sales achieved and costs sustained. d.Sales data provide the most accurate picture of whether a firm reached its performance standards.

-B: Sales data are readily available and can reflect the target market's reactions to a marketing mix. -It is a common method of evaluation because sales data are readily available, at least in aggregate form, and can reflect the target market's reactions to a marketing mix.

What is the first step in creating a marketing strategy? a.Modifying the marketing mix b.Establishing profit objectives c.Identifying the target market d.Identifying the marketing organization structure

-C: Identifying the target market -The first step in developing a marketing strategy is the selection of a target market.

Resource deployment and coordination of functional areas of business are determined by _______. a. business-unit strategy b. marketing strategy c. the mission statement d. corporate strategy

-D: Corporate Strategy -A corporate strategy outlines the scope of the business and such considerations as resource deployment, competitive advantages, and overall coordination of functional areas.

Best Buy has been engaged in a lengthy process to understand its customers and has identified several different segments of customers who are part of its target market. They use a customer-centric approach and are highly data driven using store purchase data and consumer demographics. They attempt to meet the needs and wants of the target markets they have identified through its product mix, retail store design, employee staffing, and other marketing mix variables to ensure that the needs of the target market will be met. Which of the following activities best describes Best Buy's activities? a.Marketing mix articulation b.Competitive advantage strategy c.Marketing strategy d.Target market evaluation

-D: Marketing Strategy -Marketing strategy is a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.

Marika is a manager for a boutique clothing store in downtown Austin. She has set a goal of reaching $25,000 in revenue for the month of March. In April, Marika reviews total revenues for March and realizes that she fell short of her goal by $3,000. She decides to run an additional sale in April and increase her posts on social media to hopefully reach the revenue goal in April. Marika is involved in a _______. a. product development b. selecting a target market c. SWOT analysis d. strategic performance evaluation

-D: Strategic Performance Evaluation -Marika is involved in a strategic performance evaluation. This consists of establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed.

According to the Boston Consulting Group Growth Share Matrix, products labeled as "dogs" are _______. a.easy targets that can be converted to a star b.important to the firm and require a large amount of cash to build market share in a growing market c.considered to have low opportunities for growth but possess a dominant share of the market d.often found in established markets, have low prospects for growth, and a lower share of the market

-D: often found in established markets, have low prospects for growth, and a lower share of the market

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

First-Mover Advantage

-The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

Market Share

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

Strategic Planning

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

Strategic Marketing Management

-The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Competitive Advantage

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

Core Competencies

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