MKTG 409 Exam 4 TAMU MindTap Study Guide – Pricing, Promotion, Distribution & Marketing
Strategy Review
Strategic Planning - ✔✔the process of developing and maintaining a strategic fit between the
organization's goals and capabilities and its changing marketing opportunities
5 components of strategic planning - ✔✔analysis of org strengths and weaknesses
organizational mission and goal
corporate and business-units strategies
marketing strategy
marketing strategy - ✔✔a company's plan that identifies how it will use marketing to achieve
its goals
Marketing Plan - ✔✔a written document that acts as a guidebook of marketing activities for
the marketing manager
core competencies - ✔✔Things a company does extremely well, which sometimes give it an
advantage over its competition
market opportunity - ✔✔a combination of circumstances and timing that permits an
organization to take action to reach a particular target market
strategic windows - ✔✔temporary periods of optimal fit between the key requirements of a
market and the particular capabilities of a company competing in that market
,competitive advantage - ✔✔one or more unique aspects of an organization that cause target
consumers to patronize that firm rather than competitors
mission statement - ✔✔a short, specific written statement of the reason a business exists and
what it wants to achieve
corporate strategy - ✔✔A strategy that determines the means for utilizing resources in the
various functional areas to reach the organization's goals
strategic business unit - ✔✔a division, product line, or other profit center within the parent
company
market - ✔✔a group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade
market share - ✔✔a company's product sales as a percentage of total sales for that industry
market-growth/market share matrix - ✔✔A strategic planning tool based on the philosophy
that a product's market growth rate and market share are important in determining marketing
strategy
star - ✔✔products with a dominant share of the market and good prospects for growth.
However, they use more cash than they generate to finance growth, add capacity, and increase
market share
cash cows - ✔✔have a dominant share of the market but low prospects for growth. generate
more cash than is required to maintain market share
, dogs - ✔✔have a subordinate share of the market and low prospects for growth, found in
mature markets
problem children - ✔✔"question marks" have a small share of a growing market and generally
require a large amount of cash to build share
intensive growth - ✔✔Growth occurring when current products and current markets have the
potential for increasing sales
3 main strategies for intensive growth - ✔✔market penetration, market development, and
product development
market penetration - ✔✔a marketing strategy that tries to increase market share among
existing customers
market development - ✔✔a marketing strategy that entails attracting new customers to
existing products
product development - ✔✔a marketing strategy that entails the creation of new products for
present markets
diversified growth - ✔✔growth occurring when new products are developed to be sold in new
markets
2 components of developing a marketing strategy - ✔✔selection of target market
creation of a marketing mix to satisfy needs
Strategy Review
Strategic Planning - ✔✔the process of developing and maintaining a strategic fit between the
organization's goals and capabilities and its changing marketing opportunities
5 components of strategic planning - ✔✔analysis of org strengths and weaknesses
organizational mission and goal
corporate and business-units strategies
marketing strategy
marketing strategy - ✔✔a company's plan that identifies how it will use marketing to achieve
its goals
Marketing Plan - ✔✔a written document that acts as a guidebook of marketing activities for
the marketing manager
core competencies - ✔✔Things a company does extremely well, which sometimes give it an
advantage over its competition
market opportunity - ✔✔a combination of circumstances and timing that permits an
organization to take action to reach a particular target market
strategic windows - ✔✔temporary periods of optimal fit between the key requirements of a
market and the particular capabilities of a company competing in that market
,competitive advantage - ✔✔one or more unique aspects of an organization that cause target
consumers to patronize that firm rather than competitors
mission statement - ✔✔a short, specific written statement of the reason a business exists and
what it wants to achieve
corporate strategy - ✔✔A strategy that determines the means for utilizing resources in the
various functional areas to reach the organization's goals
strategic business unit - ✔✔a division, product line, or other profit center within the parent
company
market - ✔✔a group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade
market share - ✔✔a company's product sales as a percentage of total sales for that industry
market-growth/market share matrix - ✔✔A strategic planning tool based on the philosophy
that a product's market growth rate and market share are important in determining marketing
strategy
star - ✔✔products with a dominant share of the market and good prospects for growth.
However, they use more cash than they generate to finance growth, add capacity, and increase
market share
cash cows - ✔✔have a dominant share of the market but low prospects for growth. generate
more cash than is required to maintain market share
, dogs - ✔✔have a subordinate share of the market and low prospects for growth, found in
mature markets
problem children - ✔✔"question marks" have a small share of a growing market and generally
require a large amount of cash to build share
intensive growth - ✔✔Growth occurring when current products and current markets have the
potential for increasing sales
3 main strategies for intensive growth - ✔✔market penetration, market development, and
product development
market penetration - ✔✔a marketing strategy that tries to increase market share among
existing customers
market development - ✔✔a marketing strategy that entails attracting new customers to
existing products
product development - ✔✔a marketing strategy that entails the creation of new products for
present markets
diversified growth - ✔✔growth occurring when new products are developed to be sold in new
markets
2 components of developing a marketing strategy - ✔✔selection of target market
creation of a marketing mix to satisfy needs
