GB 350 Chapter 2 Exam Questions and
Answers
larger organizations that compete in different markets often organize their strategic
planning in a - ANSWER-sub-divided manner
the individual divisions of an organization are known as - ANSWER-strategic
business units (SBU)
characteristics of SBUs - ANSWER--distinct goals and specific target market
-control over its resources
-its own competitors
-a single business or a collection of related businesses
-plans independent of other SBUs in the organization
SBU - ANSWER-(or strategic business unit) is a subgroup of a single business or a
collection of related businesses withing the larger organization. division points may
be industry, region, or even function
Ansoff's opportunity matrix - ANSWER-one of the most commonly used tools to
determine a company's strategic direction. it is a simplified model, but reflects the
basic decisions that organizations can make when developing marketing strategy
important to remember that organizations can make strategic changes to -
ANSWER-all aspects of the customer experience
market penetration example - ANSWER-loyalty programs - the goal is to increase
wallet share, or the amount of money a customer spends with the organization over
the course of the customer relationship
product development example - ANSWER-pinterest launching its "try on" feature
market development example - ANSWER-DQ opening in oxford with the same menu
as other locations
diversification example - ANSWER-adding a vegan milkshake to a menu to offer
value to a new market of customers
present market + present product = - ANSWER-market penetration
market penetration goal - ANSWER-increase market share of existing offerings
among existing customers
present market + new product = - ANSWER-product development
, product development goal - ANSWER-new offerings to create value for existing
customers
new market + present product = - ANSWER-market development
market development goal - ANSWER-attract new customers to existing offerings
new market + new product = - ANSWER-diversification
diversification goal - ANSWER-develop new offerings to create value for new
markets
core innovation ex - ANSWER-australian gold sunscreen brand realizing it had toxins
in its formulas and changing it
adjacent innovation ex - ANSWER-old bay releasing a hot sauce infused with their
signature spice blend
transformational innovation ex - ANSWER-commonbond introducing a smart save
tool, the first of its kind.
boston consulting group matrix - ANSWER--star
-cash cow
-dog
-problem child
star - ANSWER-fast growing market leader
-usually have large profits but need cash to finance growth
-a marketing tactic is to protect market share by reinvesting earnings in product
improvement, better distribution, more promo, and product effieciency
cash cow - ANSWER-generates more cash than it needs to maintain its market
share
-it is in a low-growth market, but the product has a dominant market share
-the marketing strategy is to maintain market dominance by being the price leader
and making tech improvements in the product
-it allocates excess cash to products with high-growth prospects
problem child - ANSWER-also known as a question mark, shows rapid growth but
poor profit margins
-it has a low market share in a high growth industry
-it needs a great deal of cash to prevent conversion to the status of dogs.
-the strategies are to invest heavily to gain better market share, acquire competitors
to get the necessary market share, or drop the SBU
dog - ANSWER-has low growth potential and a small market share
-most leave the market
-the strategy options are divest or harvest
Answers
larger organizations that compete in different markets often organize their strategic
planning in a - ANSWER-sub-divided manner
the individual divisions of an organization are known as - ANSWER-strategic
business units (SBU)
characteristics of SBUs - ANSWER--distinct goals and specific target market
-control over its resources
-its own competitors
-a single business or a collection of related businesses
-plans independent of other SBUs in the organization
SBU - ANSWER-(or strategic business unit) is a subgroup of a single business or a
collection of related businesses withing the larger organization. division points may
be industry, region, or even function
Ansoff's opportunity matrix - ANSWER-one of the most commonly used tools to
determine a company's strategic direction. it is a simplified model, but reflects the
basic decisions that organizations can make when developing marketing strategy
important to remember that organizations can make strategic changes to -
ANSWER-all aspects of the customer experience
market penetration example - ANSWER-loyalty programs - the goal is to increase
wallet share, or the amount of money a customer spends with the organization over
the course of the customer relationship
product development example - ANSWER-pinterest launching its "try on" feature
market development example - ANSWER-DQ opening in oxford with the same menu
as other locations
diversification example - ANSWER-adding a vegan milkshake to a menu to offer
value to a new market of customers
present market + present product = - ANSWER-market penetration
market penetration goal - ANSWER-increase market share of existing offerings
among existing customers
present market + new product = - ANSWER-product development
, product development goal - ANSWER-new offerings to create value for existing
customers
new market + present product = - ANSWER-market development
market development goal - ANSWER-attract new customers to existing offerings
new market + new product = - ANSWER-diversification
diversification goal - ANSWER-develop new offerings to create value for new
markets
core innovation ex - ANSWER-australian gold sunscreen brand realizing it had toxins
in its formulas and changing it
adjacent innovation ex - ANSWER-old bay releasing a hot sauce infused with their
signature spice blend
transformational innovation ex - ANSWER-commonbond introducing a smart save
tool, the first of its kind.
boston consulting group matrix - ANSWER--star
-cash cow
-dog
-problem child
star - ANSWER-fast growing market leader
-usually have large profits but need cash to finance growth
-a marketing tactic is to protect market share by reinvesting earnings in product
improvement, better distribution, more promo, and product effieciency
cash cow - ANSWER-generates more cash than it needs to maintain its market
share
-it is in a low-growth market, but the product has a dominant market share
-the marketing strategy is to maintain market dominance by being the price leader
and making tech improvements in the product
-it allocates excess cash to products with high-growth prospects
problem child - ANSWER-also known as a question mark, shows rapid growth but
poor profit margins
-it has a low market share in a high growth industry
-it needs a great deal of cash to prevent conversion to the status of dogs.
-the strategies are to invest heavily to gain better market share, acquire competitors
to get the necessary market share, or drop the SBU
dog - ANSWER-has low growth potential and a small market share
-most leave the market
-the strategy options are divest or harvest
