Principles of Marketing Chapter 2

Questions and Answers

What is the primary focus of a mission statement in strategic planning?

It should primarily focus on the organization's internal structure.

It should emphasize financial profit above all.

It should outline the specific products or services offered.

It should express the organization's purpose and be market-oriented. (correct)

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

Establishing a Market Share Goal (correct)

Defining a Mission

Setting Company Objectives

Designing a Business Portfolio

What is meant by 'designing a business portfolio' in strategic planning?

Outlining employee roles and responsibilities within the company.

Formulating customer service strategies to enhance brand loyalty.

Developing a collection of businesses and products that align with company strengths. (correct)

Creating specific marketing campaigns for existing products.

Which characteristic is essential for a good mission statement?

It must have a distinctive competency and fit the market environment. Signup and view all the answers

What is the objective of planning functional strategies within the strategic planning process?

To provide detailed planning that supports the overall strategic objectives. Signup and view all the answers

What is one of the purposes of analyzing the current business portfolio?

To decide on SBU investment levels Signup and view all the answers

Which category in the Portfolio Matrix is characterized by low market share and high market growth?

Question Marks Signup and view all the answers

In SWOT analysis, which of the following components is considered a strength?

Strong brand recognition Signup and view all the answers

Which strategy involves introducing modified or new products to current customers?

Product Development Signup and view all the answers

What is the role of market targeting in the marketing process?

To select which segments to enter Signup and view all the answers

Which type of market strategy is characterized by having the largest market share?

Market Leader Signup and view all the answers

What does market segmentation refer to in the marketing process?

Determining distinct groups of buyers with different needs Signup and view all the answers

What characterizes a Market Nicher?

They make specific products for specific demands. Signup and view all the answers

Study Notes

Strategic Planning

Develops an overall company strategy for long-term survival and growth.
Involves defining a mission, setting company objectives, designing a business portfolio, and planning functional strategies.

Mission Statements

Should be market-oriented, realistic, and specific.
Must communicate an organization's purpose and distinct competencies.
Should fit the market environment and motivate stakeholders.

Designing the Business Portfolio

Best portfolio aligns company strengths and weaknesses with environmental opportunities.
Involves analyzing the current business portfolio or Strategic Business Units (SBUs).
Decisions on investment levels in SBUs: increase, decrease, or halt investments.
Growth strategies aim to add new products or businesses.

Portfolio Matrix

Question Marks: Low market share but high market growth.
Stars: High market share and high market growth.
Cash Cows: High market share but low market growth.
Dogs: Low market share and low market growth.

SWOT Analysis

Framework for evaluating strengths, weaknesses, opportunities, and threats impacting the business.

Product/Market Expansion Grid

Market Penetration: Increase sales of current products to existing customers.
Market Development: Explore new markets with current products.
Product Development: Modify or develop new products for existing customers.
Diversification: Introduce new products for new markets.

Marketing's Role in Strategic Planning

Market Segmentation: Identifying distinct buyer groups with varying needs.
Market Targeting: Evaluating and selecting target segments for engagement.
Market Positioning: Establishing a product’s distinctive and desirable place in consumer minds relative to competitors.

Marketing Strategies for Competitive Advantage

Market Leader: Largest market share, can influence competitive dynamics.
Market Challenger: Has lower market share than the leader but can exert pressure.
Market Follower: Smaller market share, content to observe and follow leaders.
Market Nicher: Focuses on specific products/services tailored for particular demands.

Description

This quiz covers Chapter 2 of Principles of Marketing, focusing on strategic planning and the marketing process. It emphasizes the significance of defining a mission, setting company objectives, and designing strategies for long-term growth. Test your understanding of key concepts in strategic marketing planning.