Companywide Strategic Planning Quiz
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Questions and Answers

What is the primary goal of market development as a growth strategy?

  • Creating new products for existing markets
  • Eliminating unprofitable business units
  • Acquiring businesses outside current products
  • Identifying new market segments for current products (correct)

    • Which strategy involves offering new or modified products to current market segments?

  • Product development (correct)
  • Market segmentation
  • Downsizing
  • Market targeting

    • What does downsizing refer to in a business context?

  • Developing new marketing strategies
  • Acquiring new market segments
  • Increasing the product portfolio
  • Reducing the business portfolio by eliminating unprofitable units (correct)

    • What is a value chain in a business?

    <p>A series of departments that perform value-creating activities</p> Signup and view all the answers

    What components are included in the marketing mix?

    <p>Product, price, place, and promotion</p> Signup and view all the answers

    What is the primary purpose of implementing a marketing plan?

    <p>To turn marketing plans into actionable strategies</p> Signup and view all the answers

    What elements are included in a value delivery network?

    <p>Suppliers, distributors, and customers</p> Signup and view all the answers

    What is the process of evaluating and selecting market segments to enter called?

    <p>Market targeting</p> Signup and view all the answers

    Which element does NOT play a role in successful marketing implementation?

    <p>Employee training</p> Signup and view all the answers

    What does market positioning help achieve for a product?

    <p>Establishing a distinctive place in the market</p> Signup and view all the answers

    What does marketing control involve?

    <p>Measuring and evaluating marketing results</p> Signup and view all the answers

    What does market segmentation involve?

    <p>Dividing a market into distinct groups with unique characteristics</p> Signup and view all the answers

    How is Return on Marketing Investment (Marketing ROI) defined?

    <p>Net return from marketing divided by marketing costs</p> Signup and view all the answers

    Which of the following is NOT a factor in blending a cohesive marketing action plan?

    <p>Market share analysis</p> Signup and view all the answers

    What is the focus of market planning?

    <p>Setting overall marketing direction</p> Signup and view all the answers

    What is a key outcome of effective marketing strategy evaluation?

    <p>Achievement of marketing objectives</p> Signup and view all the answers

    What is the primary focus of strategic planning?

    <p>Maintaining a strategic fit between goals, capabilities, and marketing opportunities</p> Signup and view all the answers

    What does a market-oriented mission statement specifically define?

    <p>The organization's purpose in relation to customer needs</p> Signup and view all the answers

    What must a company do with its mission statement for effective management?

    <p>Turn it into detailed supporting objectives</p> Signup and view all the answers

    What is a business portfolio?

    <p>The collection of businesses and products that constitute the company</p> Signup and view all the answers

    In strategic planning, what is crucial for companies to adapt to?

    <p>Changing marketing opportunities</p> Signup and view all the answers

    Which of the following is NOT part of the companywide strategic planning process?

    <p>Personalizing customer experiences</p> Signup and view all the answers

    What role does measuring return on marketing investment play in strategic planning?

    <p>It assesses the success of marketing strategies.</p> Signup and view all the answers

    What is the first step in companywide strategic planning?

    <p>Defining marketing's role</p> Signup and view all the answers

    What is a strategic business unit (SBU)?

    <p>A unit of the company with a separate mission and objectives</p> Signup and view all the answers

    Which of the following describes the 'threat of new entrants'?

    <p>New entrants bring new capacity and a desire to gain market share</p> Signup and view all the answers

    Which of the following is considered an entry barrier?

    <p>Established customer loyalty</p> Signup and view all the answers

    What does 'bargaining power of buyers' refer to?

    <p>Buyers demanding lower prices or better quality products</p> Signup and view all the answers

    What is market penetration?

    <p>Increasing sales to current market segments without altering the product</p> Signup and view all the answers

    Which of the following is NOT a factor affecting 'rivalry among existing firms'?

    <p>Level of customer loyalty to existing brands</p> Signup and view all the answers

    What does the term 'threat of substitute products' mean?

    <p>Products that fulfill the same need as another but are different</p> Signup and view all the answers

    Which of the following describes 'bargaining power of suppliers'?

    <p>Ability of suppliers to raise prices or reduce quality of their offering</p> Signup and view all the answers

    Which component is considered in the portfolio planning tool for identifying growth opportunities?

    <p>Market development</p> Signup and view all the answers

    What is a common problem associated with matrix approaches in strategic planning?

    <p>They concentrate only on current business analysis</p> Signup and view all the answers

    Study Notes

    Companywide Strategic Planning

    • Strategic planning is the process of developing and maintaining a strategic fit between an organization's goals and capabilities and its changing marketing opportunities.
    • A market-oriented mission statement defines the business in terms of satisfying basic customer needs.
    • Companies need to turn their mission statement into detailed, supporting objectives for each level of management.

    Designing the Business Portfolio

    • Portfolio analysis is a major activity in strategic planning, where management evaluates the products and businesses that make up the company.
    • A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses.
    • Porter's 5 Forces are used to analyze the competitive landscape of an industry:
      • Threat of New Entrants: New entrants bring new capacity, a desire to gain market share, and substantial resources.
      • Rivalry among Existing Firms: New entrants bring new capacity, a desire to gain market share, and substantial resources.
      • Threat of Substitute Products or Services: Products that appear different but can satisfy the same need as another product.
      • Bargaining Power of Buyers: The ability of buyers to force prices down, bargain for higher quality, or play competitors against each other.
      • Bargaining Power of Suppliers: The ability of suppliers to raise prices or reduce quality.
      • Relative Power of Other Stakeholders: Includes government, local communities, creditors, trade associations, special interest groups, unions, shareholders, and complementors (products that work well with a firm's product).

    The Boston Consulting Group Approach

    • This approach classifies a company's products and businesses into a matrix based on their market growth rate and relative market share.
    • Stars: High market growth rate and relative market share.
    • Cash Cows: Low market growth rate and high relative market share.
    • Question Marks: High market growth rate and low relative market share.
    • Dogs: Low market growth rate and low relative market share.

    Developing Strategies for Growth and Downsizing

    • The product/market expansion grid is a portfolio planning tool for identifying company growth opportunities through:
      • Market Penetration: Increasing sales to current market segments without changing the product.
      • Market Development: Identifying and developing new market segments for current products.
      • Product Development: Offering new or modified products to current market segments.
      • Diversification: Starting up or acquiring businesses outside the company's current products and markets.

    Planning Marketing: Partnering to Build Customer Relationships

    • The value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
    • The value delivery network is made up of the company, suppliers, distributors, and ultimately the customers who partner with each other to improve the performance of the entire system.

    Marketing Strategy and the Marketing Mix

    • Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior.
    • A market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.
    • Market targeting is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
    • Market positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer.
    • The marketing mix is the set of controllable 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 Effort

    • Marketing implementation turns marketing plans into marketing actions to accomplish strategic marketing objectives.
    • Marketing control involves measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
      • Operating control: Focuses on ensuring that the company is implementing its marketing strategies properly and efficiently.
      • Strategic control: Focuses on ensuring that the company's marketing strategies are still relevant and effective.

    Measuring and Managing Return on Marketing Investment

    • Return on Marketing Investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.
    • Marketing ROI provides a measurement of the profits generated by investments in marketing activities.

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    Description

    Test your knowledge on companywide strategic planning and portfolio analysis. This quiz covers mission statements, strategic business units (SBUs), and Porter's 5 Forces. Understand how to align organizational goals with market opportunities effectively.

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