M 2

opportunities

include favorable trends in the external environment. -ex:Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The companys long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential.

place

includes company activities that make the product available to target consumers. -includes logistics

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness. According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.

market growth rate, relative market share

Companies that define their missions in terms of product or technology are considered myopic primarily because ________.

products and technologies eventually become outdated

market targeting

-The process of evaluating each market segment;s attractiveness and selecting one or more segments

Which of the following is NOT an example of product-oriented mission statements? Which of the following companies has a product-oriented business definition?

"We sell memorable experiences" -A shoe manufacturer, whose business definition is: ;We manufacture affordable and long-lasting shoes for all.

internal value chain

- Each department in a company that carries out value-creating activities -RedFin manufactures diving equipment that is highly regarded by customers worldwide.

BCG matrix approach

- It considers market growth rate to be a measure of market attractiveness. -is problematic in that it focuses solely on current businesses and provides little scope for future planning -According to BCG matrix Fun spot classified as a star

marketing strategy

- The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships

product oriented business definition true and false

-;At Joes Diner, we serve great burgers" yes - "at Trader Joe;s, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions

market development

-American electronics company, is currently reviewing new geographical markets to sell its highly popular LED televisions. By 2020, it plans to open new stores across all the major South Asian cities. -The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firms current products. -The managers of Alfredos Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzerias numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredos Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers -FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. -involves company growth by identifying and developing new market segments for current company products

diversification

-Amor, a successful brand of womens clothing, recently introduced a line of fitness equipment. -A womens apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. -Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. -Not dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

market segment

-Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, _______, differentiation, and positioning. -A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. -the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors? -Ex Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts.

differentiation

-Effective positioning begins with this

positioning

-Ex Arrow is a different kind of company, manufacturing a different kind of a car; the RoadPro is ;like nothing else; -ex: Alpha Motors offers Green automobiles for a greener world" -Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers -place it occupies relative to competitors products in consumers minds

geographic organization

-It allows salespeople to work with a minimum of travel time and cost. Ex: Ravenshaw Corp. assigns its sales and marketing people to specific countries, regions, and districts.

market penetration

-Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. -Making more sales to current customers without changing a firms products -Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit.

Question mark

-Question mark are low-share business units in high-growth markets that require a lot of cash to hold their share. -The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni is a question mark -Question marks are NOT high-growth high share businesses

product development

-Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. -Ron and Gail strive to provide new offerings and entertainment options for their visitors. -NOT an exaple is an american airline company started a grocery chain in Australia

Business portfolio

-The collection of businesses and products that make up a company -First step is determining which businesses should receive more, less, or no investment -The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

functional organization

-The most common form of marketing organization. different marketing activities are headed by an operational specialist. -Ex: Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. -Emerson Studios has designed its marketing organization along the lines of a functional organization in which different marketing activities are headed by operational specialists.

Value delivery network

-The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system

Portfolio analysis

-a company assesses the attractiveness of its various SBUs after identifying the key businesses that make up the company. -Most standard portfolio analysis methods evaluate SBUs on the strength of the market or industry position

product market expansion grid

-a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification -It is a useful device for identifying growth opportunities.

Promotion

-activities that communicate the merits of the product and persuade target customers to buy it.

Product

-describes the goods-and- services combination the company offers to the target market -In the marketing mix, design, packaging, services, and variety -means the goods and services combination the company offers to the target market

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 -ex: Teenagers are expected to respond in a similar way to a set of marketing efforts. -exPaul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company product. -does not consist of consumers who respond in different ways to a given set of marketing efforts

Mission Statement

-documents an organizations purpose—what it wants to accomplish in the larger environment -Mission statements should __be market oriented;_ and be defined in terms of satisfying basic customer needs. -A mission statement serves as a statement of the organizations purpose -Mission statements should be meaningful and specific yet motivating -The companys goal is to create abundant and affordable food for all and a healthy environment."This represents Orions mission statement -Fun Spots mission is market oriented -clear mission statements acts as an "invisible hand" -should be market oriented and defined in terms of satisfying customer needs -NOT just making more sales or profits

implementation

-doing things right; which is more important then doing the right things

strategic control

-involves looking at whether a companies key action plans are well-matched to its opportunities.

Strategic Planning

-is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities. -Finding the game plan for long-run survival and growth is the focus of strategic planning. Steps: 1.defining the organizational mission NOT a step: evaluating members of the companys value chain -Modern strategic planning is decentralized -major activity is business portfolio analysis Not product innovation -purpose to find ways in which your company can best use its strengths

return on marketing investment

-measures the profits generated by investments in marketing activities. -the net return from a marketing investment divided by the costs of the marketing investment.

4 ps and cs and marketing management functions

-not a valid argument that the four ps do not consider services -four cs adopts the buyers view of the market -analysis planning, implementation and control

marketing dashboards

-refer(s) to meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.

marketing control

-refers to measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved. -involves 4 steps -setting goals, measuring performance, taking corrective action, evaluating causes of gaps between expected and actual performance -DOES NOT defining companys mission

Strategic Business Unit

-the key businesses that make up a company -stars are a type of SBU that often require heavy investments to finance their rapid growth -Cash cows are low-growth, high-share businesses/products that need less investment to hold their market share. -Cash cows can be used to help finance the companys question marks and stars. -By harvesting its SBU, a company would most likely be milking its short-term cash flow regardless of the long-term effect -A company can divest the SBU by selling it or phasing it out and using the resources elsewhere. -The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools.

operating control

-to ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan. -involves checking ongloing performance against the annual plan and taking corrective action when necessary

customer management

-where more and more companies are shifting their brand management focus

executive summary

-which presents a brief summary of the main goals and recommendations of the plan for management review.

SWOT Analysis -opportunity in fun spot

A new luxury hotel is being constructed in the area, with the aim of attracting more high- spending families on vacation. -It evaluates the companys overall strengths. -is an overall evaluation of the companys strengths, weaknesses, opportunities, and threats -internal capabilities is a strength -The main section of the marketing plan -Harris Brown, the marketing manager at a small retail chain, wants to assess his firms strengths, opportunities, weaknesses, and threats.

Which of the following is NOT a market-oriented business definition? What is a market oriented business definition ? Which of the following companies has a market-oriented business definition?

We make high-quality consumer food products. We empower customers to achieve their dreams. -A cosmetic company, whose business definition is: "We sell hope and self-esteem."