Marketing Strategy Chapter 2
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Questions and Answers

What is the primary purpose of a mission statement?

  • To describe the market share targets
  • To define the organization’s purpose in the larger environment (correct)
  • To specify the company’s financial goals
  • To outline the company’s product range

What does a market-oriented mission statement primarily focus on?

  • Corporate profits
  • Satisfying basic customer needs (correct)
  • The company's products
  • The competitive landscape

What should be the main consideration when designing a business portfolio?

  • Market trends exclusively
  • The historical sales performance
  • The firm’s strengths and weaknesses (correct)
  • The current customer demographics

What is the role of strategic planning in an organization?

<p>To ensure a strategic fit between goals and marketing opportunities (C)</p> Signup and view all the answers

Which of the following best describes a strategic business unit (SBU)?

<p>A unique or separate product within a company (D)</p> Signup and view all the answers

What should an organization avoid to prevent marketing myopia?

<p>Developing a product-oriented mission statement (A)</p> Signup and view all the answers

Where is a company's mission statement most likely found?

<p>On the company’s website (B)</p> Signup and view all the answers

How does eBay's mission statement guide the company?

<p>By influencing strategic planning and advertising (B)</p> Signup and view all the answers

What is the primary purpose of business portfolio analysis?

<p>To maximize the overall attractiveness of strategic business units (A)</p> Signup and view all the answers

Which of the following is NOT a method of growth identified in the product/market expansion grid?

<p>Vertical integration (B)</p> Signup and view all the answers

What does downsizing in a company involve?

<p>Eliminating unprofitable products or business units (B)</p> Signup and view all the answers

Which factor is critical for new product development in consumer goods companies?

<p>Satisfying customer needs better than existing offerings (B)</p> Signup and view all the answers

Strategic business units (SBUs) can refer to all of the following EXCEPT:

<p>An individual employee (A)</p> Signup and view all the answers

What should a company do to decide the amount of support each SBU deserves?

<p>Assess the attractiveness of each SBU (C)</p> Signup and view all the answers

How can the product/market expansion grid be utilized?

<p>It helps identify growth opportunities through various strategies (D)</p> Signup and view all the answers

Which statement about the Product/Market Expansion Grid is accurate?

<p>It reveals growth strategies beyond current products and markets (C)</p> Signup and view all the answers

Flashcards

Mission Statement

A document that outlines the company's purpose, goals, and values.

Market-Oriented Mission Statement

A company's mission statement focused on fulfilling customer needs. It is broader than a product-oriented mission.

Product-Oriented Mission Statement

A company's mission statement solely focused on the product or service it offers. It can lead to myopia.

Business Portfolio

The collection of businesses and products that a company offers.

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Strategic Business Unit (SBU)

A division or unit within a larger company that focuses on a specific product or market.

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Strategic Planning

The process of planning and managing a company's strategic resources to achieve its goals.

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Strategic Fit

A systematic process of developing and maintaining a strategic fit between a company's goals and capabilities, and its changing market opportunities.

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Downsizing

When a company reduces its size or scope, often by eliminating products, services, or divisions.

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Boston Consulting Group (BCG) Matrix

A framework for analyzing a company's business units (SBUs) based on their market share and market growth rate.

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Star

A business unit with a high market share in a high-growth market.

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Question Mark

A business unit with a low market share in a high-growth market.

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Cash Cow

A business unit with a high market share in a low-growth market.

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Dog

A business unit with a low market share in a low-growth market.

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Product/Market Expansion Grid

A strategic tool used to identify company growth opportunities based on existing and new products and markets.

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Market Penetration

A growth strategy that involves selling more of the same products to existing customers.

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Market Development

A growth strategy that involves selling existing products to new customer groups in new markets.

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Study Notes

Chapter 2: Company and Marketing Strategy

  • This chapter focuses on company-wide strategic planning, which involves defining a company's mission, analyzing its current business portfolio, and developing growth strategies.

Knowing the Company

  • Mission statement: Defines the company's purpose and goals.
  • SBU & business portfolio: Outlines the company's products and divisions.
  • Product/market expansion grid: A tool for identifying company growth opportunities; considers existing and new products and markets. The grid has four quadrants, including: market penetration, market development, product development, and diversification.
  • Downsizing: Reducing the business portfolio by eliminating underperforming products or business units.

Strategic Planning

  • It is the process of developing and maintaining a strategic fit between the organization's goals and capabilities, and its changing marketing opportunities.

Mission Statement

  • Market-oriented: Focuses on satisfying customer needs.
  • Product-oriented: Focuses on specific products.

eBay Example

  • eBay's mission statement is "To provide a global trading platform where practically anyone can trade practically anything."

Case Studies

  • The slides include examples like P&G (Beauty & Grooming, Household Care), Starbucks, and GM.

Homework Assignments

  • Students are assigned homework, including reading chapter 3 and the GM case study. A particular question is asked about GM's bankruptcy.

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Related Documents

Chapter 2 - SS(1) PDF

Description

This quiz covers the key concepts from Chapter 2, focusing on company-wide strategic planning, mission statements, and various growth strategies. It also discusses the importance of aligning an organization's goals with market opportunities through strategic planning.

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