MAR 3023 Chapter 2

Select the three items which characterize a firm's core values. (Select all that apply)

Core values are timeless. Core values guide the organization's conduct. Core values should inspire and motivate a firm's stakeholders.

When a deviation is identified in the evaluation phase of the strategic marketing process, what two marketing actions might a manager take?

Exploit a positive deviation. Correct a negative deviation.

True or false: The purpose of a marketing strategy is to maximize short-term profits.

False

Which is a possible opportunity for a firm that makes and sells organic frozen products in the United States?

an increasing demand for organic frozen food in overseas markets

A strategy can be defined as ______.

an organization's long-term course of action allowing it to achieve its goals

The clear, broad, underlying industry category or market sector of an organization's offering defines its ______.

business

The primary difference between a business firm and a nonprofit organization is that a ______.

business firm serves its customers in order to earn a profit

What are the two ways that organizational strategies most often vary?

by a strategy's level in the organization by the offerings an organization provides to its customers

What is the best way the marketing department can perform its key role of looking outward?

by listening to customers

An organization's ________ are its special capabilities, including skills, technologies, and resources that distinguish it from other organizations and provide value to its customers.

core competencies

An organization's ________ are the fundamental, passionate, and enduring principles that guide its conduct over time.

core values

The overall strategy for the entire organization is set at the ______.

corporate level

What are the three levels of strategy in organizations?

corporate level strategic business unit level functional level

A small group of people from different departments who are mutually accountable to accomplish a task or common goals is known as a(n) ______.

cross-functional team

Randall is trying to determine if it is feasible for his company to open a second location. In order to help him make a decision, Randall has assembled a small group of people from different departments—finance, production, marketing, and human resources—as well as his main supplier to study this idea and give Randall feedback. This group is referred to as a ______.

cross-functional team

A cluster of benefits that an organization promises customers (or segments) to satisfy their needs is a ______.

customer value proposition

A marketing ________ allows a manager to glance at a graph or table and make an informed decision whether to take action regarding organizational objectives.

dashboard

The functional level is made up of ________, which provide specific and focused strategic direction.

departments

Select the items that characterize organizations. (Select all that apply)

develops goods, services, or ideas strives to create value for its customers consists of people who share a common mission

In an organization, what function takes place at the corporate level?

directing the overall strategy for the organization

Among the four growth opportunities in diversification analysis, which is the most risky?

diversification

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is called ______.

diversification analysis

Which two techniques aid in decisions about where an organization wants to go?

diversification analysis business portfolio analysis

An organization's core values are best described as the

enduring principles that guide its conduct over time.

When marketers _____, they take into account the fact that customers are different, customers change, competitors change and react, and organizational resources are limited.

enter into the strategic marketing process

Acting on deviations, both positive and negative, is an important part of what phase in the strategic marketing process?

evaluation

What are the three phases of the strategic marketing process?

evaluation planning implementation

A market penetration strategy attempts to increase sales of present products among ______.

existing customers

A market development strategy can be defined as selling ______.

existing products to new customers

To what does "opportunity" refer in SWOT analysis?

favorable aspects of the external environment

To what does "strength" refer in SWOT analysis?

favorable internal attributes of a firm

An organization's core values, mission, and culture will establish its philosophical reason for being, or its ______.

foundation

The marketing department, finance department, human resources department, and information systems department all operate at the ______ level of an organization.

functional

Diversification analysis and business portfolio analysis help managers develop ________ strategies and make resource allocation decisions.

growth

A key task in the implementation phase of the strategic marketing process is to obtain resources. What two resources are needed to execute the marketing program successfully?

human resources financial resources

Obtaining and assembling sufficient human and financial resources to execute a successful marketing program takes place in which step of the strategic marketing process?

implementation

Obtaining resources and defining tasks and deadlines are part of which phase in the strategic marketing process?

implementation

In a SWOT analysis, strengths and weaknesses are ________, and opportunities and threats are ________.

internal; external

In defining a business firms should focus on ______.

its customers and their needs

An organization sets its direction based on ______. (Select two answers)

its specific goals the business it is in

Once an organization has established its foundation, it can set its direction in terms of the "business" it is in and

its specific goals.

To help define its business, an organization can start by ______.

looking at the set of organizations that sell similar offerings

Andy's Auto Detailing decides to open a second shop in a neighboring town. In doing so, the company is using which marketing strategy?

market development

Which marketing strategy would use advertising to encourage existing customers to buy more of a product each time they visit a store?

market penetration

The ratio of sales revenue of a firm to the total sales revenue of all firms in the industry, including the firm itself is referred to as ______.

market share

A ______ is a visual display of the essential information related to achieving a marketing objective.

marketing dashboard

Each display in a marketing dashboard shows a marketing ________ in an easily interpreted visual format.

metric

A ______ outlines an organization's function in society and identifies its customers, markets, products, and technologies.

mission statement

In defining one's business, one should avoid a(n) ________ definition that is not focused on customer ________.

narrow; needs

The product development strategy involves marketing a ______ product or service to a ______ market for the organization.

new; current

A diversification strategy, one of four possible market-product strategies included in diversification analysis, introduces a ______ product to a ______ market.

new; new

An organization whose primary organizational goal is operational efficiency or client satisfaction would be classified as a(n) ______.

nonprofit organization

Which two items are part of the implementation phase of the strategic marketing process?

obtaining resources designing the marketing organization

A(n) ______ is a legal entity that consists of people who share a common mission.

organization

Step 1 of the planning phase in the strategic marketing process involves ______.

performing a situation analysis using SWOT

A marketing ________ is a road map for the marketing actions of an organization for a specific future time period.

plan

Performing a SWOT analysis, setting market and product goals, and developing a marketing program are all steps in the ________ phase of the strategic marketing process.

planning

The ________ is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place.

planning gap

In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to the organization's best growth opportunities.

portfolio

The ______ strategy offers a new product or service to a firm's existing market.

product development

In searching for growth opportunities, organizations using diversification analysis consider both current and new options for which two items?

products markets

A business firm seeks ________ while a(n) ________ organization may seek other goals like operational efficiency or customer satisfaction.

profit; nonprofit

A marketing metric is a measure of the ______ of a marketing activity or result.

quantitative value or trend

The BCG business portfolio analysis relies on two elements to produce four unique product categories. What are these two elements?

relative market share market growth rate

Core competencies are an organization's ______.

special capabilities, including skills, technologies, and resources that distinguish it from other organizations

What are the three key elements of a visionary organization?

specify a foundation set a direction formulate strategies

The purpose of a mission statement is to ______.

state an organization's function in society

A(n) ______ is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.

strategic business unit (SBU)

A large health products manufacturer has three distinct divisions: first aid products, oral care products, and foot care products. Each of these divisions has a specific strategy to target a specific market. These three divisions are referred to as ______.

strategic business units (SBUs)

Organizational ______ vary depending on organizational level and the offerings an organization provides to its customers.

strategies

Having a large U.S. market share is an example of a(n) ______ for an organization.

strength

In a BCG portfolio analysis, relative market share is determined by taking a company's sales and dividing it by the sales of ______.

the largest firm in the industry

Developing the marketing mix and its budget are part of which step in the planning phase of the strategic marketing process?

the marketing program

What four items are shown on a Gantt chart?

the person(s) responsible for completing the task the tasks to be completed the date to finish the task what is to be delivered

An organization uses ______ to allocate its marketing mix resources to reach its target markets.

the strategic marketing process

Inexperienced managers would be considered a(n) ______ in a SWOT analysis?

weakness

A marketing plan is a road map for marketing actions for ______.

a future time period

A goal can be defined as ______.

a statement of a task to be achieved

Identifying which three items allow an organization to determine where it is at the present time, as it begins to set a strategic direction?

Competitors Customers Competencies

The planning gap is an example of ______.

a comparison of projected sales for current plans and a new sales goal

Which of the following are true of portfolio analysis? (select all that apply)

Firms typically perform it at the SBU or product line level of the firm. Management allocates its resources to products based on growth opportunities. Management evaluates the firm's various products and businesses.

________ convert an organization's mission and business into long- and short-term performance targets.

Goals

A key role of the marketing department is to "look outward." What four actions help to achieve this objective?

Implementing marketing program actions Evaluating marketing actions against set goals Listening to customers Developing offerings

An effective customer value proposition meets which three criteria?

It details points of difference. It details specific benefits in clear terms. It is relevant.

Which statement is true regarding market share?

It is the percentage of sales of an industry accounted for by a specific firm.

For an organization performing a SWOT analysis, a threat is characterized by which two things?

It is unfavorable. It is external.

Select the four principles that underlie the strategic marketing process.

Organizational resources are limited. Customers are different. Customers change. Competitors change and react.

Which tool serves as an effective summary of a situation analysis?

SWOT analysis

______ refer to the favorable internal attributes of the firm.

Strengths

Your firm manufactures cleaning solutions under the brand name EZ Clean. Which of the following would be a strength for your firm?

The brand name EZ Clean is well-known.

Which statement is true of an organization's core values?

They should inspire and motivate employees to take productive action.

True or false: An organization's core values typically do not change much over time.

True

Identifying one's direct competition is a way to answer which question?

What business are we in?

Identifying one's competencies, customers, and competitors helps an organization answer what important question in setting a strategic direction?

Where are we now?

Business portfolio analysis and diversification analysis help an organization to answer what important strategic question?

Where do we want to go for growth?

What tool, used during the implementation phase of the strategic marketing process, helps identify which tasks can be done concurrently and which tasks must be done sequentially?

a Gantt chart