An organization’s direction within its chosen environment and its allocation of resources is usually determined by
strategic planning.
strategic business units.
marketing tactics.
marketing myopia.
Separate marketing plans for each product line are most often used by
local governments.
consumer-goods manufacturers.
service firms.
industrial-goods manufacturers.
Which of these is a way to drop tension among functional departments?
Minimizing interfunctional contact
Seeking employees who do not blend technical and marketing expertise
Establishing independent task forces and committees
Setting objectives for each department interdependent with other departments’ goals
Organizational mission refers to
a philosophy by which an organization individually assesses and positions every SBU.
a long-term commitment to a type of business and a place in the market.
specific actions undertaken to implement a given marketing strategy.
an approach in which a firm seeks greater sales of present products or new product uses.
In the strategic planning process, the next step after a firm defines its organizational mission is to
outline a budget.
establish strategic business units.
set marketing objectives.
perform situation analysis.
An example of a qualitative term that can be used to describe objectives is
market share in the industry.
profit as a percentage of sales.
sales growth.
level of innovativeness.
Which of the following questions does situation analysis seek to answer?
In what direction is a firm headed?
How will resources be allocated?
Who is responsible for carrying out marketing actions?
What sales personnel should be hired?
As part of a market development strategy, a firm could
develop new models of existing products to appeal to present markets.
reposition existing products.
become involved with new products aimed at new markets.
seek to attract non-users of its existing products.
A strategic business unit with a high market share in a mature industry is a
question mark.
cash cow.
star.
dog.
The General Electric business screen looks at two major dimensions: company business strengths and
market share.
profitability.
industry attractiveness.
target market features.
Strategic business units shown in the selectivity/earnings areas of the General Electric business screen are
performing poorly in unattractive industries.
performing poorly in highly competitive industries.
performing well in unattractive industries.
performing well in strong industries.
According to the Porter generic strategy model, with a differentiation focus strategy, a strategic business unit
aims at a narrow target segment through low prices or a unique offering.
aims at a broad market and offers products at low prices and in large quantities.
aims at a narrow market by offering goods or services viewed as distinctive.
aims a new product at a new market.
A major weakness of the strategic planning approaches discussed in this chapter is that they
are sometimes difficult to implement.
do not allow a firm to follow competitors’ actions.
prevent a firm from analyzing all its business units and products.
do not focus on creating and keeping key differential advantages.
The level of investment in specific marketing activities and the timing of marketing actions are decisions relating to
implementing tactics.
establishing SBUs.
developing marketing strategy.
monitoring results.
Monitoring results involves
setting corporate and marketing objectives.
creating new strategic business units.
comparing actual performance to planned performance for a specified time period.
identifying internal strengths and weaknesses, as well as external opportunities and threats.
