swot) analysis,marketing process, marketing plan

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Marketing Management

Copy Right : Rai University

Unit 2Scanning Marketing Opportunities

Chapter 4 - Strategic PlanningLesson 13 - Strength-weakness-opportunities-threat (SWOT) analysis,

marketing process, marketing plan

Hello students!

In this section of this unit we shall be discussing the analysis of the environment the company isworking in plays a very major role in the strategic planning of the business. Then we move on to thediscussion of the Marketing planning process which lays a foundation for all the topics in the comingunits. We would also discuss the components of the marketing plan which is knowledge of which isvery essential and useful for any marketing person.

1.1 SWOT analysisWhen you are planning strategically with any companyonline or offlineit is useful to complete ananalysis that takes into account not only your own business, but your competitors businesses and thecurrent business environment as well. A SWOT is one such analysis.

Completing a SWOT analysis helps you identify ways to minimize the effect of weaknesses in yourbusiness while maximizing your strengths.

Ideally, you will match your strengths against market opportunities that result from your competitorsweaknesses or voids.

Internal Environment External Environ-ment Analysis Analysis

Strengths Weaknesses Opportunities Threats

SWOT ANALYSIS

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PERFORMING SWOT OR SITUATION ANALYSIS In situation analysis, also known as SWOT analysis, an organization identifies internal strengths

and weaknesses, as well as external opportunities and threats. It seeks to answer two generalquestions:

Where is the firm now? In what direction is it headed?

Situation analysis accomplishes the following: It recognizes strengths and weaknesses relative to competitors. It searches the environment for opportunities and threats. It assesses an organizations ability to capitalize on opportunities and to minimize threats. It anticipates competitors responses to company strategies.

Situation analysis can, and should be, conducted at any point in an organizations life. Severalexamples of situation analyses are provided.

Strengths & WeaknessesThe analysis of the internal environment of the firm reveals its strengths and its weaknesses whichhelps the firm to analyse how to turn its weaknesses in to strengths .

Firms strengths consists of its resources and capabilities that can be useful in developing its competi-tive advantage over its competitors. Some of the examples of firms strengths are Its access to highgrade natural resources, strong brand name, strong distribution network, brand name, patents, stronginformation network, etc.

Firms weaknesses is absence of certain strengths which is the necessity for its business to fightcompetition. Some of the examples of it are poor reputation among customers, lack of access tonatural resources, lack of coordination with the suppliers and distributors, dissatisfied employees,demotivated marketing staff, etc

Opportunities & ThreatsThe analysis of the external environment reveals to the firm the opportunities available for it in themarket and what are the threats it is facing, which helps it analyse the various strategies what toselect. Some of the examples of opportunities are arrival of new technology, removal of some tradebarriers or government regulations, an unfulfilled customer need, etc.

The changes that take place regularly in the external environment gives rise to certain threats to thebusiness like shift in consumer tastes, new regulations, increased trade barriers.

Now the firm has to identify the best fit between its strengths and the opportunities available and tryto overcome its weaknesses and ready to face the challenges / threats.

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Strength Opportunities strategies : pursue those opportunities which best fit Companies strengths

Weaknesses opportunities strategies: pursue opportunities to overcome weaknesses

Strengths Threats strategies: identify ways through which firm can use its strength to reducethe degree of external threats

Weaknesses Threats: Establish a defensive plan to prevent the firms weaknesses from makingit highly susceptible to external threats

Basic SWOTYou can develop a basic SWOT analysis in a brainstorming session with members of your company,or by yourself if you are a one-person shop. To begin a basic SWOT analysis create a four-cell gridor four lists, one for each SWOT component:

Then, begin filling in the lists.

Strengths - Think about what your company does well. What makes you stand out from your com-petitors? What advantages do you have over other businesses?

Weaknesses - List the areas that are a struggle. What do your customers complain about? What arethe unmet needs of your sales force?

Opportunities - Try to uncover areas where your strengths are not being fully utilized. Are thereemerging trends that fit with your companys strengths? Is there a product/service area that youcould do well in but are not yet competing?

Threats. Look both inside and outside of your company for things that could damage your business.Internally, do you have financial, development, or other problems? Externally, are your competitorsbecoming stronger, are there emerging trends that amplify one of your weaknesses, or do you seeother threats to your companys success?

Advanced SWOTA more in-depth SWOT analysis can help you better understand your companys competitive situa-tion. One way to improve upon the basic SWOT is to include more detailed competitor information inthe analysis.

You can note the internet-related activities such as trade organization participation, search engineinclusion, and outside links to the sites. This will better help you spot opportunities for and threats toyour company.

You can also take a closer look at the business environment. Often, opportunities arise as a result ofa changing business environment.

Some examples are:A new trend develops for which demand outstrips the supply of quality options. For example, earlyon, the trend toward healthy eating coupled with an insistence on good-tasting food produced ashortage of acceptable natural food alternatives. Tetra pack fruit juices like Real and Onus capturedon a nutritional drink opportunity.

A customer segment is becoming more predominant, but their specific needs are not being fully metby your competitors. The Indian rural markets have been experiencing this phenomenon in the recentyears for many product categories.

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A customer, competitor, or supplier goes out of business or merges with another company. With thedemise of many pure-play dot-coms, examples of this abound. As each went out of business, oppor-tunities arise to gain the defunct businesscustomers. Customers of bpl.net were ready customersfor a company called Data Access which was operating under the NOW brand.

You can also enhance a SWOT analysis through surveys. You can learn more about your own aswell as competitor sites and businesses. Areas you can research include 1) customer awareness,interest, trial, and usage levels; 2) brand, site, and/or company image; 3) importance of different siteor product attributes to your customers; and 4) product and/or site performance.

Whether using a basic or more advanced approach to SWOT analysis, you are sure to come awaywith newfound insights. Use these to increase your companys effectiveness and as input into yourbusiness or marketing plan.

The extent to which each part of the above process needs to be carried out depends on the size andcomplexity of the business.

In an un diversified business, where senior management have a strong knowledge and detailed un-derstanding of the overall business, it may not be necessary to formalize the marketing planningprocess.

By contrast, in a highly diversified business, top-level management will not have knowledge andexpertise that matches subordinate management. In this situation, it makes sense to put formal mar-keting planning procedures in place throughout the organization.

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Marketing planning flows from the strategic plan of the organiza-tion.

Businesses that succeed do so by creating and keeping customers. Theydo this by providing better value for the customer than the competition.

Marketing management constantly has to assess which customers theyare trying to reach and how they can design products and services thatprovide better value (competitive advantage).

The main problem with this process is that the environment in whichbusinesses operate is constantly changing. So a business must adapt toreflect changes in the environment and make decisions about how to changethe marketing mix in order to succeed. This process of adapting and deci-sion-making is known as marketing planning.

Where do you think marketing plan fits in with the overall strategic plan-ning of a business?

Strategic planning is concerned about the overall direction of the busi-ness. It is concerned with marketing, of course. But it also involves deci-sion-making about production and operations, finance, human resource man-agement and other business issues.

The objective of a strategic plan is to set the direction of a businessand create its shape so that the products and services it provides meetthe overall business objectives.

Marketing has a key role to play in strategic planning, because it is the jobof marketing management to understand and manage the links betweenthe business and the environment.

Sometimes this is quite a straightforward task. For example, in many smallbusinesses there is only one geographical market and a limited number ofproducts (perhaps only one product!).

However, consider the challenge faced by marketing management in amultinational business, with hundreds of business units located around theglobe, producing a wide range of products. How can such management

keep control of marketing decision-making in such a complex situation? This calls for well-organizedmarketing planning.

What do you think are the key issues that should be addressed in marketing planning?

The following questions lie at the heart of any marketing (or indeed strategic) planning process: Where are we now? How did we get there? Where are we heading? Where would we like to be? How do we get there? Are we on course?

Why do you think is marketing planning essential?

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Businesses operate in hostile and increasingly complex environment. The ability of a business toachieve profitable sales is impacted by dozens of environmental factors, many of which are inter-connected. It makes sense to try to bring some order to this chaos by understanding the commercialenvironment and bringing some strategic sense to the process of marketing products and services.

How do you think a marketing plan is useful to people in a business?

It can help to: Identify sources of competitive advantage Gain commitment to a strategy Get resources needed to invest in and build the business Inform stakeholders in the business Set objectives and strategies Measure performance

STEPS IN THE MARKETING PLANNING PROCESS

To carry out their responsibilities, marketing managers-whether at the corporate, division, business orproduct level-follow a marketing process.

The marketing process consists of the following steps.

STEP 1: ANALYZE PRESENT MARKETING SITUATION

1) EXTERNAL ANALYSIS Market size and growth Competitors Market Share Legal Political Technology Industry Past Performance Social factors Opportunities

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2) INTERNAL ANALYSIS Financial Resources Production Capabilities Production Capacity R&D Capabilities Sales capabilities Corporate Mission and Objectives Distribution Capabilities Costs VITO management style

STEP 2: IDENTIFYING TARGET MARKETSPosition analysis Specifically defined market segments Geographically located Current Size Potential growth Estimated resistance to be encountered Assess ability to overcome expected resistance

STEP 3: DETERMINE MARKETING OBJECTIVESTraditional marketing objectives Increase sales volume Increase growth rate Increase market share Increase market penetration Maximize return on investment Promote positive company image Promote social responsibility

Criteria for effective marketing objectives Consistent with corporate objective Realistic Attainable Measurable Specific Not mutually exclusive

STEP 4: SELECT APPROPRIATE MARKETING MIX

Factors to consider Product / Service Strategies including Specifications, Product Line

and product support activities Distribution strategies including delivery channels, types of middlemen, warehousing, inventory,

transportation costs and shipping costs. Promotion strategies including types of salespeople, advertisisng venues, trade shows, catalogs,

direct mail, web site offerings, search engine optimization and email campgains. Pricing Strategies including Retail (List) &Wholesale (Net) Pricing, Discounts, coupons, no sales

tax and free shipping.

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STEP 5 & 6: DEVELOP AND IMPLEMENT PLAN OF ACTION TO CARRY OUT MAR-KETING MIX Determine Required Mix Activities Estimate Time Required for each Activity Arrange Activities in Logical Sequence Combine Activities into Plan of Action Establish Dates for Start /Completion of each Activity Assign Responsibility for the Performance of each Activity Determine Costs and Set Budget for each Activity Begin Implementing Plan of Action for each Activity based on Established start days.

STEP 7& 8: ESTABLISH CONTROL AND EVALUATION CRITERIA AND IMPLE-MENT PROCEDURE Identify Key Performance Areas Establish Performance Standards /Criteria Measure Performance Results Compare Performance Results with Established Performance Standards /Criteria Identify Discrepancies Between Results and Established Performance Standards / Criteria Diagnose the Causes of Discrepancies Establish Corrective Action to Bring Results into Line with Established Performance Standards

/Criteria Implement Corrective Procedures and Measure Performance results

Marketing planning - setting marketing objectivesObjectives set out what the business is trying to achieve. Objectives can be set at two levels:(1) Corporate levelThese are objectives that concern the business or organization as a whole.

Examples of corporate objectives might include: We aim for a return on investment of at least 15% We aim to achieve an operating profit of over Rs 5 crores on sales of at least Rs 100 crores We aim to increase earnings per share by at least 10% every year for the next 3 years

(2) Functional levelThey are specific objectives for marketing activitiesExamples of functional marketing objectives might include: We aim to build customer database of at least 250,000 households within the next 12 months We aim to achieve a market share of 10% We aim to achieve 75% customer awareness of our brand in our target markets

Both corporate and functional objectives need to conform to the commonly used SMART criteria.The SMART criterion is an important concept that you should try to remember and apply not only inexams but also in your working life. SMART is summarized below: Specific - The objective should state exactly what is to be achieved. Measurable - An objective should be capable of measurement so that it is possible to deter-

mine whether (or how far) it has been achieved Achievable - The objective should be realistic given the circumstances in which it is set and the

resources available to the business. Relevant - Objectives should be relevant to the people responsible for achieving them

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Time Bound Objectives should be set with a time frame in mind. These deadlines also needto be realistic.

You must have realized by now that the marketing department is in the drivers seat looking at theoutside world through the glass. However for any business plan to succeed, the marketing departmentsplan has got to be supported by all other departments.

How do you think is the relationship between marketing and other departmentsstrengthened?1. Marketing and the other functional areas in an organization have distinct needs that must be

accommodated.

2. Marketers seek tailor-made products, flexible budgets, non-routine transactions, many productversions, frequent purchases, customer-driven new products, employee compensation incen-tives, and aggressive actions against competitors.

3. The other functional areas seek mass production (production), set budgets (finance), routinizedtransactions (accounting), limited models (engineering), infrequent orders (purchasing), technol-ogy-driven new products (research and development), fixed employee compensation (person-nel), and passive actions against competitors (legal).

4. When you reach the top management level, you must balance these varying needs and weightrade-offs.

5. You can reduce the conflict by: Establishing multifunctional task forces. Coordinating objectives. Open communication and inter functional contact. Employing personnel with technical and marketing knowledge.

How do you devise a strategic marketing plan?

You can create, implement, and monitor a strategic marketing plan when your company makes awritten plan.

You can encourage executives to: Carefully think out and coordinate each step in the planning process Pinpoint problem areas Be consistent Tie the plan to goals and resources Measure performance Send a clear message to employees and others

How do you make a sample outline for a written strategic plan? This is a brief list of the ingredients of a good strategic plan:1. It should be integrated into an organizations overall business plan.2. It should effect the consideration of strategic choices.3. It should force a long-range view.4. It should make the resource allocation system visible.5. It should provide methods to help strategic analysis and decision making.6. It should provide a basis for managing a firm or SBU strategically.

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7. It should provide a communication and coordination system both horizontally (between SBUsand departments) and vertically (from senior executives to front-line employees).

8. It should help a firm and its SBUs cope with change.

MOONSTRUCK CHOCOLATIER: A STRATEGIC MARKETING PLAN BY A SMALLSPECIALTY FIRM (Source: Evans J.R., and Berman B-Marketing, 8e (Biztantra, 2003)A. Moonstruck Chocolatier was opened by Bill and Deb Simmons in Portland, Oregon, in 1992 as a

maker of truffles for the wholesale market. It sold to other retailers and opened its first retailstore in 1996.

B. The company currently has annual sales of $2 million and is successful due to its solid strategicmarketing plan which is described.

Organizational MissionA. Moonstrucks mission is to bring the higher European standard for chocolate to the American

marketplace and to create shops that serve as a meeting place in a busy, impersonal world.

1. It is romancing the cocoa bean and educating the customer.

2. The company is about a chocolate experience.

Organizational StructureA. Bill and Deb Simmons manage the business.

B. Tony Roth purchased the exclusive rights to open Moonstruck stores in the Midwest and hiscompany acquired a 25 percent stake in Moonstruck Chocolatier. Roth felt the need to take thesuperior product and menu direct to the market.

Marketing ObjectivesA. These are the goals of Moonstruck:1. To grow from six stores in 2001 to 45 stores in Chicago, New York City, and Portland at year-end

2003.2. To have annual sales of $26 million.3. To become a brand as well known as Starbucks, substituting chocolate for coffee.

Situation AnalysisA. The Simmonss strategic plan, as they freely admit, is based on that of Starbucks; they did a

comprehensive analysis on Starbucks business model.

Developing Marketing StrategyA. The two strategic planning approaches with the most relevance for Moonstruck are the product/

market opportunity matrix and the Porter generic strategy model.1. The firm is engaged in both a product development strategy (producing distinctive new chocolate

products for current customers) and a market development strategy (seeking out those whohave not thought of chocolate beverages as must have drinks).

2. Moonstruck believes in a differentiation strategy (superior products at a premium price). Soci-etal, Ethical, and Consumer Issues

A. Moonstruck uses the highest-quality ingredients.B. It treats employees and customers courteously, honesty, and respectfully.C. The firm stands behind all of its products.D. Moonstruck is socially responsible.

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Global MarketingA. Moonstruck searches the globe for the best cocoa beans, consistent with its organizational mis-

sion.

Marketing and InternetA. Moonstruck uses its web site to get its message across to a larger audience by allowing online

ordering.

Consumer Analysis and Target Market StrategyA. Moonstruck appeals to customers interested in quality, uniqueness, assortment, and service

and are willing to pay for it.B. These are the firms two market segments:1. Final consumers (who buy for personal use).2. Corporate customers (who buy as gifts and in larger quantities).

Product PlanningA. Moonstruck has expanded, adding products that complement each other well. Customers can

buy truffles, coffee drinks, and chocolate drinks. The company mixes fresh, high-quality choco-late into exotic confections.

B. Chocolate in varying forms yields two-thirds of sales.

Distribution PlanningA. Moonstrucks retail stores are changing, due largely to Tony Roths influence. They are larger,

generate much greater sales, and have much higher profit margins.

Promotion PlanningA. Moonstruck uses in-store tastings and demonstrations to draw customers into impulse purchases.B. It does some print advertising.C. The biggest promotion effort revolves around publicity from newspaper and magazine stories

about Moonstruck products.

Price PlanningA. Moonstruck has above-average prices.1. About 60 percent of revenues are from high-margin chocolate truffles and drinks Integrating and

Analyzing the PlanA. Tony Roth is Moonstrucks management catalyst, with a conviction to go forward. Roth visu-

alizes the concept of Moonstruck in play.

Revising the Marketing Plan

Until late 1999, Moonstruck owned a bakery in Portland. It was sold to focus better on its chocolatebusiness and the marketing strategy for it. The bakery had little synergy with the firms core busi-ness.

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Points to remember

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Tutorial - C

SUMMARY OF THE CHAPTERA. A formal strategic planning process is needed to coordinate the factors controlled by top man-

agement and marketers, as well as provide guidance for decision-making.

B. A strategic business plan describes the overall direction an organization will pursue within itschosen environment and guides the allocation of resources and effort. It also provides the logicthat integrates the perspectives of functional departments and operating units, and points them allin the same direction. It has these elements:

1. An external orientation.2. A process for formulating strategies.3. Methods for analyzing strategic situations and alternatives.4. A commitment to action.

C. This chapter considers the importance of strategic planning for marketing Strategic planningencompasses both strategic business plans and strategic marketing plans. Strategic businessplans describe the overall direction firms will pursue within their chosen environment and guidethe allocation of resources and effort. Strategic marketing plans outline what marketing actionsto undertake, why those actions are needed, who is responsible for carrying them out, when andwhere they will be completed, and how they will be coordinated.

Strategic planning provides guidance via a hierarchal process, clarifies goals, encourages depart-mental cooperation, focuses on strengths and weaknesses (as well as opportunities and threats),examines alternatives, helps allocate resources, and points up the value of monitoring results.

D. A strategic marketing plan outlines the marketing actions to undertake, why they are needed,who is responsible for carrying them out, when and where they will be completed, and how theywill be coordinated.

E. An early understanding of strategic planning in marketing is important for several reasons.1. It gives direction to efforts.2. A strategic plan makes sure each divisions goals are integrated with firm wide goals.3. It coordinates functional efforts.4. It assesses strengths and weaknesses, as well as opportunities and threats.5. It outlines options.6. It establishes a basis for resource allocation.7. The value of having a procedure for assessing performance can be shown. See Figure 3-1.

F. This chapter looks at the different kinds of strategic plans and the relationships between market-ing and the other functional areas in an organization. A firms strategic plans may be short run,moderate in length, or long run. Strategic marketing plans may be for each major product, pre-sented as one company wide marketing plan, or considered part of an overall business plan. Abottom-up, top-down, or combined management approach may be used.

The interests of marketing and the other key functional areas in a firm need to be accommodated ina strategic plan. Improving communications, employing personnel with broad backgrounds, establish-ing interdepartmental development programs, and blending departmental goals can reduce depart-mental conflict.

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G. This chapter also describes thoroughly each of the steps in the strategic planning process. First,a firm defines its organizational missionthe long-term commitment to a type of business and aplace in the market. Second, it establishes strategic business units (SBUs), the self-containeddivisions, product lines, or product departments with specific market focuses and separate man-agers. Third, quantitative and qualitative marketing objectives are set. Fourth, through situationanalysis, a firm identifies its internal strengths and weaknesses, as well as external opportunitiesand threats.

Fifth, a firm develops a marketing strategyto outline the way in which the marketing mix is used toattract and satisfy the target market(s) and accomplish organizational goals. Every SBU has its ownmarketing mix. The approaches to strategy planning include the product/ market opportunity matrix,the Boston Consulting Group matrix, the General Electric business screen, and the Porter genericstrategy model. They should be viewed as planning tools that aid decision-making; they do not re-place the need for executives to engage in hands-on planning for each situation.

Sixth, a firm uses tactical plans to specify the short-run actions necessary to implement a givenmarketing strategy. At this stage, specific tasks, a time horizon, and resource allocation are madeoperational. Seventh, a firm monitors results by comparing actual performance against planned per-formance; and this information is fed back into the strategic planning process. Adjustments in strat-egy are made as needed.G. Strategic planning should stress market information, market-segment definition, and market tar-

geting. All company activities should be built around the goal of creating the desired position witha well-defined set of customers.

H. In a market-oriented view of the strategic planning process, financial goals are seen as resultsand rewards, not the fundamental purpose of business. Distinction between commonly usedterms like plan, strategy, tactics, goals, objectives and aims

A plan is a way of achieving something. Your revision plan is a way of helping to achieve success inbusiness studies exams. The Christmas present shopping list is a simpler example of a plan a wayof ensuring that no one gets missed on 25 December.

In business, it is no different. If a business wants to achieve something, it is more likely to do so witha well-constructed and realistic plan.

What does planning involve? Planning involves: Setting objectives, quantifying targets for achievement, and communicating these targets to peopleresponsible for achieving them

Selecting strategies, tactics, programmes etc for achieving the objectives.

The whole topic of planning brings with it some important terminology that it is worth spending timegetting to know well. You will come across these terms many times in your study of marketing (andbusiness studies in general):

StrategyStrategy is the method chosen to achieve goals and objectives

Example: Our strategy is to grow sales and profits of our existing products and to broaden ourbusiness by introducing new products to our existing markets

TacticsTactics are the resources that are used in the agreed strategy

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Example: We will use our widespread distribution via UK supermarkets to increase sales and existingproducts and introduce new products

GoalsGoals concern what you are trying to achieve. Goals provide the intention that influence the chosenactions Example: Our goal is to achieve market leadership in our existing markets

ObjectivesObjectives are goals that can be quantified Examples:- We aim to achieve a market share of 20% in our existing markets- We aim to penetrate new markets by achieving a market share of at least 5% within 3 years- We aim to achieve sales of growth of 15% per annum with our existing products

AimsAims are goals that cannot be measured in a reliable way. However, they remain important as ameans of providing direction and focus.

Questions

Multiple Choice1. When your firm practices developing and maintaining a strategic fit between your organizations

goals and capabilities, it is forming a (an) _____.a. mission statementb. values statementc. strategic pland. operating plan

2. At the corporate level, a company starts the strategic planning process by defining its overallpurpose and _____.

a. missionb. valuesc. visiond. strengths

2. A clear mission statement acts as an invisible hand that guides people in the firm. It is a state-ment of _____.

a. factb. valuesc. purposed. financial goals

3. What does a market-oriented mission statement define about the business?a. satisfying basic customer needsb. satisfying basic supplier needsc. satisfying basic stockholder needsd. satisfying basic owner needs

4. Your text pointed out that mission statements should be both _____ and specific.a. long-termb. realistic

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c. short-termd. value-laden

5. _____ mission statements provide little real guidance or inspiration.a. Triteb. Copy-catc. Genericd. none of the above

6. The companys mission needs to be turned into detailed supporting objectives for _____.a. successb. each level of managementc. corporate needsd. stockholder wealth

7. What do we call the collection of businesses and products that make up the company?a. investment diversityb. needs inventoryc. business portfoliod. none of the above

8. Kimball Gardens is a company that operates as two distinctive businesses one that sells lawnand garden products and one that markets booklets. Each business is called a _____.

a. separate entityb. strategic business unit (SBU)c. profit centerd. division

9. The firm you work for has decided to use the Boston Consulting Groups approach to classify itsbusiness units. Upon what is the approach based?

a. most profitable unitsb. growth-share matrixc. customer retentiond. cost-benefits

10. The BCG market growth rate provides a measure of _____.a. company strength in the marketb. decline of competitorsc. market attractivenessd. the unit stock value

11. Which of these is not one of the common options in using the BCG approach?a. buildb. holdc. harvestd. diversify

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12. Mountain Home Farms is now using the product/market expansion grid. The owners have foundit to be quite useful for identifying _____.

a. target marketsb. growth opportunitiesc. key customersd. new products

13. A common practice among marketers is to increase sales to current customers without changingtheir products. What is this practice called?

a. market skimmingb. market penetrationc. market developmentd. product extension

14. A common practice among marketers is to identify and develop new markets for their existingproducts. This practice is called _____.

a. market developmentb. product developmentc. market penetrationd. market skimming

15. There are many reasons why a firm might want to abandon products or markets. In theseinstances, companies would consider _____ rather than growing.

a. downsizingb. demarketingc. retrenchingd. none of the above

16. You are excited about studying marketing. You tell your younger brother that product, price,place, and promotion make up the _____.

a. marketing packageb. marketing strategyc. marketing combinationd. marketing mix

17. Which of the four Ps describes the goods-and-services combination the company offers to thetarget market?

a. priceb. promotionc. productd. place

18. Banking, airline, and retailing services are properly termed _____.a. service productsb. productsc. adjunct productsd. accessories

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19. A concern with the four Ps is that it takes the _____ view and not the _____ view.a. buyers; sellersb. broad; narrowc. sellers; buyersd. traditional; modern

20. We can safely say that the marketing mix constitutes the companys tactical tool kit for establish-ing _____ in target markets.

a. strong salesb. strong positioningc. strong competitivenessd. strong strategies

21. Today the four Ps are compared to the four Cs. Product and price are called _____ and _____respectively.

a. convenience; customer solutionb. customer cost; conveniencec. communication; customer solutiond. customer solution; customer cost

22. Marketers see themselves as selling products, while customers see themselves as buying _____.a. valueb. solutionsc. bargainsd. value or solutions to their problems

23. One of these is not a basic marketing management function. Please choose it.a. analysisb. planningc. directingd. implementation

24. A thorough market analysis includes all of the following except one. Which one?a. company situationb. marketsc. company strengthsd. past sales records

25. Identify the marketing logic whereby the company hopes to achieve its marketing objectives.a. marketing planb. marketing goalsc. marketing strategyd. marketing promotion plan

26. A marketing plan begins with an executive summary, which quickly overviews major assess-ments, goals, and _____.

a. budgetsb. markets

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c. promotionsd. recommendations

27. Marketing planning address the what and why of marketing activities. Implementation addressesthe _____.

a. who, when, whereb. when, where, howc. who, where, when, howd. who, where, when, how much

28. When your boss says that implementation means doing things right, what does she mean whenshe says doing the right things?

a. strategyb. planningc. objectivesd. proper execution

29. A brilliant marketing strategy counts for little if the company fails to _____ it properly.a. strategically planb. budgetc. implementd. construct

30. Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organi-zation in which different marketing activities are headed by a specialist. What is this organizationcalled?

a. geographicb. productc. organicd. functional

Essay Questions

31. What has created Disneys success as a world leader of entertainment?

32. Briefly mention the components of a strategic plan.

33. Describe what goes into a market-oriented mission statement.

34. Explain the purpose of the Boston Consulting Group approach to business planning, and brieflydescribe each of the four types of SBUs.

35. Compare and contrast the following strategies for growth: market penetration, market develop-ment, product development, and diversification.

36. How do marketers use partner relationship management to their advantage?

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Further reading and references

Text

Evans J.R., and Berman B - Marketing, 8e (Biztantra, 2003)Kotler P- Marketing Management: The Millennium Edition (Prentice-Hall, 2000)Ramaswamy V.S., and Namakumari S. - Marketing Management (Macmillan, 2002)Saxena R - Marketing Management (Tata-McGraw Hill, 2002)

Others

Business IndiaBusiness TodayBusiness WorldThe Economic Times supplements Brand Equity, Corporate Dossier

swot) analysis,marketing process, marketing plan

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