MAR chapter 2

Question​ marks, cash​ cows, dogs, and stars are the four types of SBUs defined in which of the​ following?

growth share matrix

diversification

starting up or buying businesses outside of its current products and markets.

SBU =

strategic business units

Which of the following are part of an overall SWOT analysis evaluation of a​ company?

strengths weaknesses opportunities threats

product development

offering modified or new products to current markets.

business portfolio

the collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company's strengths and weaknesses to opportunities in the environment.

problems with matrix approaches

They can be difficult, time consuming, and costly to implement. Management may find it difficult to define SBUs and measure market share and growth. In addition, these approaches focus on classifying current businesses but provide little advice for future planning.

market penetration

making more sales in its current product lines and markets

Denim Blue Jean Corporation is a growing company located in Washington​ State, but it is beginning to develop a presence in the surrounding states as well. It sells only one product-blue jeans-but it has 12 different lines of jeans that cater to​ men, women,​ children, babies,​ toddlers, and teens. Which marketing organization would BEST suit Denim Blue Jean​ Corporation?

market or customer organization

When consumers respond in a similar way to a given set of marketing​ efforts, they can be referred to as​ a(n) _________.

market segment

business portfolio planning (2 steps)

1, First, the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. 2. Second, it must shape the future portfolio by developing strategies for growth and downsizing.

What are the marketing management​ functions?

Analysis Planning Control Implementation

How do the individual components of a SWOT analysis work together to determine the status of a​ company?

By ascertaining a​ company's strengths, relating them to​ opportunities, minimizing​ weaknesses, and identifying threats to growth and development

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. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.

Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the​ company's niche product-​premium, organic dog and cat food-and contracted to sell it in several​ high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do​ now?

Create a promotion strategy to increase customer awareness.

Sarah has started a new​ company, Sarah's Soaps. She has decided upon the overall purpose and​ mission, created detailed objectives to guide the​ company, and performed detailed portfolio analysis. Unsure of her next​ step, she looks to her partner Mildred for advice. What is the BEST advice Mildred could​ give?

Develop detailed marketing and departmental plans that will support the​ company-wide plan.

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.

Which of the following is a valid concern when it comes to the four​ Ps?

It uses the​ seller's view of the market.

A​ company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually​ improve?

Examine the​ company's partner relationship management.

What are stars in the growth share​ matrix?

High-growth, high-share businesses or products

When a company engages in strategic​ planning, it must consider which of the​ following?

How to take advantage of current business opportunities

The goal of a market development growth strategy is to do which of the​ following?

Identify and develop new markets for current products of a​ company's market.

What is​ management's first step when performing a portfolio​ analysis?

Identify strategic business units.

A marketing dashboard is used to do which of the​ following?

Monitor strategic marketing performance.

​MorningLinks, Inc., makes breakfast sausages and has begun to use the​ slogan, "Start Your Day the Organic​ Way" to jump on the​ eco-friendly movement.​ Unfortunately, as soon as consumers discovered​ MorningLinks' not-so-organic​ ingredients, the company began to see a rapid decline in profits and customer loyalty. What was​ MorningLinks' mistake?

MorningLinks did not deliver on the promise it made.

​Connie's Cupcakes has started to grow larger than Connie could ever have imagined. She is having a hard time keeping track of all of the​ business' marketing activities. She knows that she is going to need help to keep her business growing and is looking to hire. Whom should Connie​ hire?

Noah​ Lopez, a marketing specialist who would be hired as​ Connie's new chief marketing officer

growth share matrix

On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market. The growth-share matrix defines four types of SBUs:

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. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

stars

Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.

What is a business​ portfolio?

The collection of businesses and products that make up a company

How do company objectives and goals relate to the company mission​ statement?

The goals and objectives outline the steps necessary to accomplish the​ company's mission statement.

​Tammy's Tap Dancing School currently has several question marks in its business​ portfolio, but it is currently maintaining its market share. At the most recent board​ meeting, the CEO of​ Tammy's Tap Dancing School decided to allocate all of the​ company's profits toward the growth and expansion of this question​ mark, in order to cause the question marks to become stars. What is likely to happen to this​ company?

The growth of the company will be unpredictable since there is no guarantee a question mark will become a star.

portfolio analysis

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones.

A value chain consists of which of the​ following?

The series of internal departments that carry out​ value-creating activities

Why is marketing return on investment so difficult to​ measure?

There is no consistent definition.

What is the purpose of the marketing mix as part of the overall marketing​ strategy?

To elicit a response that influences a demand for the product from the customers the company is targeting

A brand new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for the new​ company?

We will help customers​ build, invigorate,​ restore, refurbish, or completely redesign their homes or businesses.

marketing mix improvements

adjustments to its product design, advertising, pricing, and distribution efforts.

To create value for​ customers, marketers must improve the performance of the​ ______, which includes partnering with​ suppliers, distributors, and customers.

value delivery network