Marketing 303 Chapter 2
A value chain is best defined as __________.
the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
If Google wrote its mission statement, what would it be advised to write? The mission of Google is __________.
to give people a window into the world's information, wherever it might be found
What is the name for the process of arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?
Positioning
With four categories of SBUs and products arrayed on the Boston Consulting Group share-growth matrix, the manager needs to determine how to manage each of them. If the firm decides to take short-term cash flow from the brand or SBU, despite long-term consequences, it is said to be in the ____________ mode.
Harvest
Although strategic planning models like the Boston Consulting Group share-growth matrix are valuable tools for managers, they have limitations. Which of the following is an advantage of using the Boston Consulting Group share-growth matrix?
Identifying which SBUs require more resources and which generate revenue to fund other SBUs
Managing the marketing process requires four marketing management functions: analysis, planning, ______________, and control.
Implementation
If Apple introduced a marketing strategy designed to encourage new groupslong dash—such as seniorslong dash—to visit its stores for the first time, this would be an example of a ________ growth strategy.
Market development
__________ achieves company growth by identifying and developing new market segments for current company products.
Market development
The Boston Consulting Group growth-share matrix classifies SBUs the firm has in two dimensions; the first dimension is _______________, which measures market attractiveness for the entire industry on the vertical axis.
Market growth rate
__________ achieves company growth by increasing sales of current products to current market segments without changing the product.
Market penetration
__________ involves measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that the objectives are achieved.
Marketing control
__________ refers to turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
Marketing implementation
__________ is the net return from a marketing investment divided by the costs of the marketing investment.
Marketing return on investment
__________________ is(are) the measurement of the profits generated by investments in marketing activities.
Marketing return on investment (or marketing ROI)
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships is __________.
Marketing strategy
________ represents the marketing logic by which the company hopes to create customer value and achieve profitable, mutually beneficial relationships.
Marketing strategy
The first step of the strategic planning process is to identify the company's ________, an explicit statement that clearly explains the organization's purpose and what it seeks to accomplish.
Mission
Which of the following is a statement of the organization's purpose - what it wants to accomplish in the larger environment?
Mission statement
If a firm such as McDonald's wanted to expand its business by adding locations, redesigning menus, and adding services, it would be realizing growth through ____________.
Penetration
A key limitation of BCG and other formal approaches to ________ planning is that they focus on classifying current businesses and provide little advice for future planning.
Portfolio
Marketing managers have in their control four variables known as the four Ps. These four variables do not include the __________.
Portfolio
A major activity in strategic planning is ________ analysis, whereby management evaluates the products and lines of business that make up the company.
Business portfolio
How does product development achieve company growth?
By offering modified or new products to current market segments
A member of top management, the _____, is the champion of the customer's cause and heads up the company's entire marketing operation, representing marketing on the company's top management team.
CMO
The growth-share matrix defines four types of SBUs. The low-growth, high-share business or products, classified as _________, typically need less investment to hold their market share. Generally, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.
Cash cow
If a firm like McDonald's wanted to expand its business by acquiring a company such as Chevron gas stations, it would be realizing growth through ____________.
Diversification
__________ achieves company growth by starting up or acquiring businesses outside the company's current products and markets.
Diversification
What is 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
Although modern marketing departments can be arranged in several ways, the most common form of marketing organization is the ________ organization, in which different marketing activities are headed by a specialist in any given area.
Functional
Designing a business portfolio involves finding businesses and products the company should consider in the future. Companies need growth if they are to compete more effectively, satisfy their stakeholders, and attract top talent. At the same time, a firm must be careful not to make growth itself an objective. The company's objective must be to manage __________.
Profitable growth
The growth-share matrix defines four types of SBUs: __________ are low-share business units in high-growth markets.
Question marks
The growth-share matrix defines four types of SBUs. The high-growth, low-share businesses or products, which typically need heavy investments to finance their rapid growth, are called ______________.
Question marks
The Boston Consulting Group growth-share matrix classifies SBUs the firm has in two dimensions. The horizontal dimension consists of the _______________, which measures the firm's strength in the market.
Relative market share
The process of dividing a broad market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs, is known as ________.
Segmentation
The growth-share matrix defines four types of SBUs. High-growth, high-share businesses or products are called ______________.
Stars
__________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
Strategic planning
There are two steps to business portfolio planning. First, the company analyzes its current business portfolio and determines which businesses should receive more, less, or no investment. Which of the following is the second step?
The organization must shape the future portfolio by developing strategies for growth and downsizing.
What is the marketing mix?
The set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
Managing the marketing function should begin with a thorough situation analysis of the firm's internal and external environments, including company strengths, weaknesses, opportunities, and ________.
Threats
After determining the market-oriented mission, what is the next step in the process of strategic planning?
Turning the mission into detailed supporting objectives that guide the entire company
Each company department can be thought of as a link in the company's internal ________.
Value chain
Competition no longer takes place only between individual rivals. Rather, it takes place between the ________ networks created by these competitors.
Value delivery
A __________ consists of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.
Value delivery network
Astute marketers practice partner relationship management and must work closely with partners in other company departments to form an effective internal value chain that serves customers. Additionally, they must partner effectively with other companies in the marketing system to form a competitively superior _____________________.
Value delivery network
A SWOT analysis is best described as __________.
an overall evaluation of the company's strengths, weaknesses, opportunities, and threats
The growth-share matrix defines four types of SBUs: Stars are __________.
high-growth, high-share businesses or products
When the marketing department works to improve customer satisfaction, it can cause other departments to decrease their job performance. When marketing tries to improve customer satisfaction, it may result in __________.
increased purchasing costs, disrupted production schedules, and increased inventories
The growth-share matrix defines four types of SBUs: Cash cows are __________.
low-growth, high-share businesses or products
The growth-share matrix defines four types of SBUs: Dogs are __________.
low-growth, low-share businesses and products
Once a marketing plan is written, the manager has to convert the plan into actions that actually accomplish the strategic marketing objectives. The process of ______________________ addresses the who, where, when, and how of the marketing plan.
marketing implementation
A ____________________ is a statement of the organization's purposelong dash—what it wants to accomplish in the larger environment.
mission statement
Companies know that they cannot profitably serve all consumers in a given market, at least not all consumers in a uniform way. Most firms are in a situation to serve some portions of the market better than others, and they undertake four steps in order to make that effective. These steps are as follows (placed in sequential order): ____________________.
segmentation, market targeting, differentiation, and positioning
The organization needs to turn its mission statement into detailed supporting objectives for each level of management. The next step after setting the mission statement is to ____________________________.
set company objectives and goals
More companies today are partnering with other members of the supply chain. These partnerships include __________ and they improve the performance of the customer value delivery network.
suppliers, distributors, and customers
SWOT analysis is an integral part of the first stage of the market process, which is analysis. The parts of the SWOT analysis that apply to external elements are___________ and __________.
opportunities; threats