Company and Marketing Strategy

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following terms refers to the process of dividing a market into distinct groups of buyers who have different needs, traits, or behaviors?

Market segmentation (correct)

Market penetration

Product development

Market development

What is the logic by which a company hopes to create customer value and achieve profitable customer relationships called?

Market targeting

Positioning

Market segmentation

Marketing strategy (correct)

Which term refers to the arrangement of a product to occupy a clear and desirable place against competing products in the minds of target consumers?

Market development

Positioning (correct)

Market penetration

Differentiation

What is the set of practical marketing tools used to produce the ideal response in the target market called?

Market mix Signup and view all the answers

What is the overall evaluation of a company's strengths, weaknesses, opportunities, and threats called?

SWOT analysis Signup and view all the answers

Which term refers to the process of turning strategies and plans into marketing actions to accomplish a company's objectives?

Marketing implementation Signup and view all the answers

What is the process of measuring and evaluating marketing results and making adjustments to ensure objectives are achieved called?

Marketing control Signup and view all the answers

What is the formula for calculating marketing return on investment (ROI)?

Net returns from a marketing investment / costs of marketing investments Signup and view all the answers

Which term refers to the increase in sales of current products to current market segments without changing the product?

Market penetration Signup and view all the answers

What is the term for starting up or acquiring businesses outside the company's current products and markets?

Diversification Signup and view all the answers

Which statement best defines strategic planning?

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities Signup and view all the answers

What is the purpose of a mission statement?

To express the core purpose of the company Signup and view all the answers

What is a business portfolio?

The collection of businesses and products that make up the company Signup and view all the answers

What is the major activity in strategic planning?

Business portfolio analysis Signup and view all the answers

What are strategic business units (SBU's)?

Key businesses that make up the company Signup and view all the answers

What are stars in the growth-share matrix?

High growth potential businesses that need funding for their rapid growth Signup and view all the answers

What are cash cows in the growth-share matrix?

Low growth, high-share revenue businesses Signup and view all the answers

What are questions marks in the growth-share matrix?

Low-share SBU's that management must think about Signup and view all the answers

What are dogs in the growth-share matrix?

Low-growth, low-share businesses and products Signup and view all the answers

What is the purpose of business portfolio analysis?

To evaluate the products and businesses that make up the company Signup and view all the answers

Study Notes

Market Segmentation and Positioning

Market segmentation involves dividing a market into distinct groups based on varying needs, traits, or behaviors of buyers.
Positioning refers to arranging a product in a way that it occupies a clear and desirable place in the minds of target consumers compared to competitors.

Value Creation and Customer Relationships

The logic a company follows to create customer value and achieve profitable relationships is called the value proposition.

Marketing Mix and Tools

The set of practical marketing tools utilized to elicit the desired response from the target market is referred to as the marketing mix.

Strategic Analysis and Evaluation

A company's strengths, weaknesses, opportunities, and threats (SWOT) assessment provides an overall evaluation crucial for strategic planning.
Regular measurement and evaluation of marketing results, along with adjustments to meet objectives, is part of performance tracking.

Marketing ROI

Marketing Return on Investment (ROI) is calculated by the formula: (Net profit from marketing - Marketing cost) / Marketing cost.

Growth Strategies

Concentric diversification is the term for increasing sales of existing products to current market segments without altering the product.
The term diversification relates to the startup or acquisition of businesses beyond a company's current product and market scope.

Strategic Planning Concepts

Strategic planning defines the process of creating a long-term plan aligning with a company’s mission and objectives.
A mission statement outlines the purpose and core values of a business, guiding overall direction.
A business portfolio encompasses the collection of all investments and business units under a company.

Activities in Strategic Planning

The major activity in strategic planning involves assessing market opportunities and resources to achieve organizational goals.
Strategic Business Units (SBUs) are individual business segments within a larger corporation, tailored to specific markets.

In the growth-share matrix:
- Stars represent high-growth products with substantial market share.
- Cash cows are established products with a strong market presence but low growth potential.
- Question marks are products in high-growth markets but with low market share, indicating uncertainty.
- Dogs refer to low-growth and low-market share products that may weaken the portfolio.

Purpose of Business Portfolio Analysis

Business portfolio analysis aims to evaluate the performance and strategic value of a company’s various business units, guiding resource allocation.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of key marketing concepts with this quiz. From market segmentation to SWOT analysis, this quiz covers essential terms and strategies used to create customer value and achieve profitable relationships.