Final Exam Review (Sorted) - Chapter 2Developing Successful...

Chapter 2—Developing Successful Marketing and Organizational Strategies
• Strategic marketing process—planning, implementation and evaluation
o 1) Situation (SWOT) Analysis – strengths, weaknesses, opportunities, and threats
o 2) Market-Product Focus and Goal Setting – set goals, set target markets, find points of
difference, and position the product
o 3) Marketing Program – development of marketing mix elements and budget for each
offering
• Business portfolio analysis – A technique that managers use to quantify performance measures
and growth targets to analyze its clients’ strategic business units (SBU’s) as though they were a
collection of separate investments
• Cash Cows – generate lots of cash, slow growth (Pepsi)
• Stars – high share of high growth markets that may need extra cash to finance future growth;
when growth slows, they become cash cows; customers want cheap (Walmart)
• Question Marks – low share of high growth markets; require large amounts of cash to maintain
market share; high demand for car repairs (car repair garage)
• Dogs – low shares of slow-growth markets; generate enough cash to get by, but don’t expect to
be winners in their business (small town theater)
Chapter 7—Understanding and Reaching Global Consumers and Markets
• Global Market Entry Strategies
o Exporting – producing goods in one country and selling them in another (least profit
potential; least amount of a firm’s financial commitment, risk, and marketing control)
o Licensing – a company offers the right to a trademark, parent, trade secret, or other
similarly valued items of intellectual property in return for royalty/fee (2 nd least profit
potential; 2
nd
least amount of a firm’s financial commitment, risk, and marketing control)
 Contract Manufacturing – a US company may contract with a foreign firm to
manufacture products according to stated specifications
 Contract Assembly – a US company may contract with a foreign firm to assemble
(not manufacture) parts/components that have been shipped to that country
o Joint Venture – when a foreign company and a local firm invest together to create a local
business (2 nd highest profit potential and amount of firm’s commitment, risk, and control)
o Direct Investment – a domestic firm investing in and owning a foreign subsidiary or
division (highest profit potential; most of a firm’s financial commitment, risk, and
marketing control)
• Global Environmental Scan – global companies conduct continuing environmental scans on 5
sets of factors (social, economic, technological, competitive, and regulatory forces)
o Cultural Diversity
 Cross-Cultural Analysis – the study of similarities/differences among consumers
in two or more nations/societies
 Values – represent personally/socially preferable modes of conduct/states of
existence that persist over time
 Customs – what is considered normal/expected about the way people do things in
a specific country
 Symbols