Marketing and Sales Chapter 3

Define a strategic businessunit (SBU). What is contained in one?

A single business or collection of related businesses that can be planned separately from the rest of the company. It contains its own set of competitors and a manager who is responsible for strategic planning and profit performance. The goal is to assign these units strategic planning goals and appropriately fund certain areas of a company.

Explain the role of the target market as the marketer attempts to build the marketing mix.

A target market easily defines what a specific market wants and a company can use its marketing mix tools to better fit a target market's wants and needs. Product, price, promotion, and placement can all be adjusted based on the specific target market's preferences, resulting in higher customer satisfaction.

A hotel company acquiring a food distributor is an example of:

Backward Integration

If a hotel chain buys one of its suppliers, it is engaging in what type of growth?

Backward Integration

When hotel chains enter such markets as the retirement home industry, they are practicing which type of strategy?

Conglomerate diversification

Most large companies consist of four organizational levels:

Corporate, division, business unit, and product

The "red" in Project RED, in addition to being a color that is almost universally associated with a sense of urgency, stands for Revenue growth, Expense management, and optimum:

Deployment of capital

________ growth makes sense when good opportunities can be found outside the present businesses.

Diversification

A company's mission statement should provide direction for the company for no more than five years at a time.

False

Market penetration refers to the strategy of creating new products to sell to small niche markets.

False

Mission statements should be realistic and general in nature.

False

When a market's annual growth rate falls below 10 percent, a star will become a dog if it still has the largest market share.

False

A company starts the strategic planning process at the customer level by defining its values statement and mission.

False (Corporate level)

A hotel company acquiring a tour operator is an example of:

Forward Integration

A hotel company acquiring one or more of its competitors is an example of:

Horizontal Integration

According to the Ansoff product-market expansion grid, management should first consider whether:

It should gain more market share with its current products in their current market

Companies that diversify too broadly into unfamiliar products or industries can ________ their market focus.

Lose

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior who might require separate products or marketing programs is called

Market Segmentation

Selecting one or more market segments to enter is part of:

Market Targeting

________ is the marketing logic by which the company hopes to create customer value and achieve profitable relationships.

Marketing strategy

A well worked-out ________ provides company employees with a shared sense of purpose, direction, and opportunity.

Mission Statement

Which of the following is one of the four Ps of the marketing mix?

Place

The example of the Las Vegas Hilton's change in strategic focus underscores how companies are increasingly refocusing their attention on the need to manage ________ instead of departments

Processes

4 P's

Product, Price, Place, Promotion

Which of the following is NOT part of the four Ps of the marketing mix?

Profits

Studies have shown that a well-crafted mission statement aids a firm's performance as the mission statement serves as a statement of:

Purpose

A company may discover additional sources of ________, by investigating possible integration moves.

Sales Volume

The principle objective of a market-oriented mission statement is to:

Satisfy basic customer needs

Briefly mention the components of a strategic plan.

Starting at the corporate level, strategic planning is first developed by defining a mission or purpose. That mission is then used to set company objectives and goals. Then, headquarters design the portfolio of the business and its products that will meet these goals. Lastly, marketing and other functional strategies are developed to support the company-wide plan.

Market definitions of a business are ________ to product definitions.

Superior

Discuss the differences in approach between the traditional four Ps and the current four Cs.

The four P's (product, place, price, and promotion) are the factors of a marketing mix that are developed from the perspective of a company (the seller's views), while the four C's (consumer solution, cost, convenience, and communication) are the concerns of the customer (the buyer's viewpoints). Marketing is developed best when the four C's are taken into account first, and then the 4 P's are built upon that.

What role does the marketing mix play in target marketing?

The marketing mix is compromised of four factors under a company's control, product, price, place, and promotion. Since a company has control over these factors, it can change them as needed to meet the wants of the market they are targeting. After market analysis and planning, a company can use its research to define a specific target market's wants and deliver them to it.

A business portfolio is the collection of businesses and products that make up the company.

True

A critical and sometimes overlooked stakeholder group is that of owners of hotels managed by a hotel management company.

True

An internal environmental analysis is essentially a strengths and weaknesses analysis.

True

Critics of strategic alliances point out the high failure rate of such alliances, which is probably unfair, since short-term objectives may have been met.

True

One of the major effects of the marketing plan process is that it forces marketing managers to objectively review all steps in the marketing process.

True

The ideal target market for a firm is the one in which it can profitably generate the greatest customer ________ and ________ it over time.

Value, sustain and grow

The number of channel levels from raw materials to final product and the distribution in which the company will engage is an example of ________ scope.

Vertical

4 C's

customer solution, customer cost, convenience, communication