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?

To ensure a strategic fit between goals and marketing opportunities Signup and view all the answers

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

A unique or separate product within a company Signup and view all the answers

What should an organization avoid to prevent marketing myopia?

Developing a product-oriented mission statement Signup and view all the answers

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

On the company’s website Signup and view all the answers

How does eBay's mission statement guide the company?

By influencing strategic planning and advertising Signup and view all the answers

What is the primary purpose of business portfolio analysis?

To maximize the overall attractiveness of strategic business units Signup and view all the answers

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

Vertical integration Signup and view all the answers

What does downsizing in a company involve?

Eliminating unprofitable products or business units Signup and view all the answers

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

Satisfying customer needs better than existing offerings Signup and view all the answers

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

An individual employee Signup and view all the answers

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

Assess the attractiveness of each SBU Signup and view all the answers

How can the product/market expansion grid be utilized?

It helps identify growth opportunities through various strategies Signup and view all the answers

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

It reveals growth strategies beyond current products and markets Signup and view all the answers

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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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.