Marketing Chapter 2

Front 1

What is a business plan?

Back 1

The decisions that guide the entire organization or its business units

Front 2

What is a marketing plan?

Back 2

describes the marketing environment, outlines the marketing strategies, and identifies how the strategies will be implemented, monitored, & controlled.

Front 3

What are the levels of strategic planning?

Back 3

Strategic Planning
Functional Planning
Operational Planning

Front 4

What are the three characteristics of an SBU?

Back 4

1. It is a business or collection of related businesses that can be planned separately from the rest of the company.
2. It has its own competitors.
3. It has a manager who is responsible for strategic planning and profit performance.

Front 5

What are the Steps in Strategic Planning?

Back 5

Step 1: Define the Mission
“What is the firm’s business?”
Step 2: Evaluate the Internal and External Environment
SWOT Analysis
Step 3: Set Organization or SBU Objectives
Specific
Measurable
Attainable (Realistic)
Step 4: Establish the Business Portfolio

Front 6

What is on the Vertical Axis?

Back 6

Market growth rate
Above 10% considered high

Front 7

What is on the Horizontal Axis?

Back 7

Relative market share
Ranges from 0.1x to 10x

Front 8

What are stars?

Back 8

SBUs whose products have dominant market share in high growth markets

Front 9

What are question marks?

Back 9

SBUs whose products have low market share in high growth markets

Front 10

What are Cash Cows?

Back 10

SBUs whose products have dominant market share in low growth markets

Front 11

What are Dogs?

Back 11

Nobody wants these. Low market share in low growth market.

Front 12

What are the Four possible SBU objectives?

Back 12

Build
Hold
Harvest
Divest

Front 13

What are the steps in Functional Planning?

Back 13

Step 1: Situation Analysis
Step 2: Set Marketing Objective
Step 3: Develop Marketing Strategies
Selecting a Target Market
Segmenting the market
Selecting target market
Developing the marketing program
Step 4: Implement Marketing Strategies
Step 5: Monitor and Control Marketing Strategies
Compare results with plan
Act on deviations

Front 14

What is Operational Planning?

Back 14

Day-to-day execution of the marketing plan
Performed by first-line supervisors
Timed over 1-2 months

Front 15

What is corporate culture?

Back 15

a system of shared attitudes and behaviors held by the employees that distinguish it from other organizations.

Front 16

Purchasers are influenced by

Back 16

marketing mix (4Ps) controllable
uncontrollable external elements

Front 17

What is the economy?

Back 17

pertains to the income, expenditures, and resources that affect the cost of running a business and household.

Front 18

What are the macroeconomic conditions?

Back 18

Inflation
Consumer confidence

Front 19

What is competition?

Back 19

refers to the alternative firms that could provide a product to satisfy a specific market's needs.

Front 20

What is technology?

Back 20

refers to inventions or innovations from applied science or engineering.

Front 21

What are three types of product related legislation?

Back 21

Company Protection
Consumer Protection
Both Company and Consumer Protection

Front 22

What are demographics?

Back 22

Statistics that measure observable aspects of a population.

Front 23

What are the age cohorts?

Back 23

Pre-Depression Generation (born before 1930)
Depression Generation (1930-1945)
Baby Boom Generation (1946-1964)
Generation X (1965-1976)
Generation Y (born after 1976) (1979-1994)

Front 24

What is culture?

Back 24

is the set of values, ideas, and attitudes of a homogeneous group of people that are transmitted from one generation to the next.

Front 25

What are the physical aspects a marketer should be aware of?

Back 25

Natural resources
Shortages of raw materials
Increased cost of energy
Climate
Weather

Front 26

What is business planning?

Back 26

An ongoing process of making decisions that guide the firm both in the short term and for the long haul

Front 27

What is the business plan?

Back 27

A plan that includes the decisions that guide the entire organization

Front 28

What is the marketing plan?

Back 28

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy

Front 29

What is strategic planning?

Back 29

A managerial decision process that matches an organization's resources and capabilities to its market opportunities for long term growth and survival

Front 30

What is functional planning?

Back 30

A decision process that concentrates on developing detailed planes for strategies and tactics for the short term that support an organization's long-term strategic plan

Front 31

What is operational planning?

Back 31

A decision process that focuses on developing detailed plans for day-to-day activtieis that carry out an organization's functional plans

Front 32

What are strategic business units (SBUs)?

Back 32

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors

Front 33

What is a mission statement?

Back 33

A formal statement in an organization's strategic plan that describes the overall purpose of the orgnaization and what it intends to achieve in terms of its customers, products, and resources

Front 34

What is an internal environment?

Back 34

The controllable elements inside an orgnaization, including its people, its facilities, and how it does things that influence the operations of the organization

Front 35

What is the external environment?

Back 35

The uncontrollable elements outside an organiation that may affect its performance either positively or negatively

Front 36

What is a SWOT analysis?

Back 36

An analysis of an orgnaizaiton's strengths and weaknessess and the opportunities and threats in its _external_ environment

Front 37

What is a business portfolio?

Back 37

The group of differnet products or brands owned by an organization and characterized by different income-generating and growth capabilities

Front 38

What is portfolio analysis?

Back 38

A management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units

Front 39

What is the BCG growth-market share matrix?

Back 39

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products

Front 40

What are market penetration strategies?

Back 40

growth strategies designed to increase sales of existing products to current customers, nonusers, and sers of competitive brands in served markets

Front 41

What are market development strategies?

Back 41

Growth strategies that introduce existing products to new markets

Front 42

What are product development strategies?

Back 42

growth strategies that focus on selling new products in served markets

Front 43

What are diversification strategies?

Back 43

Growth strategies that emphasize oth new products and new markets

Front 44

What is control?

Back 44

A process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis

Front 45

What are operational plans?

Back 45

Plans that focus on the day-to-day execution of the marketing plan. These include detailed directions for the specific activities to be carried out, who will be responsible for them, and timelines for accomplishing the tasks

Front 46

What is corporate culture?

Back 46

The set of values, norms, and beliefs that influence the behavior of everyone in the organization

Front 47

What is the business cycle?

Back 47

The overall patterns of change in the eocnom - including periods of prosperity, recession, depression, and recovery - that affect consumer and business purchasing power.

Front 48

What is competitive advantage?

Back 48

The process of gathering and analyzing publicly available information about rivals

Front 49

What is discretionary income?

Back 49

The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing

Front 50

What is product competition?

Back 50

When firms offering different procuts compete to satisfy the same consumer needs and wants

Front 51

What is brand competition?

Back 51

When firms offering similar goods or services compete on the basis of their brand's reputation or perceived benefits

Front 52

What are demographics?

Back 52

Statistics that measure observable aspects of a population, including size, age, gender, ethic group, income, education, occupation, and family structure