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IUB BUS-M 300 - Exam 2 Study Guide

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BUS-M 300 1nd EditionExam # 2 Study Guide Lectures: 7 - 10Lecture 7 (September 25)Linking Marketing and Corporate Strategies What is strategic planning? It is a process where the business determines and documents what its future actions willbe. What two questions must a company ask while setting strategic directions?A company must ask where are we now and where do we want to go. To determine where a company is now, what are the three things they must focus on?To determine where a company is now, they must focus on the customers, competenciesWhat is competitive advantage and how is it created? A competitive advantage is the unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. They are created through uniqueness. Step on is to identify core competency and step two is to turn that core competency into a differential product benefit. Name and describe the four components of the business portfolio analysis. Business portfolio analysis is a technique that managers use to quantify performance measures and growth targets of their firms’ strategic business units. The four components are question marks, stars, cash cows, and dogs. Cash cows are SBUs that generate large amounts of cash, far more than they can use. Cash cows are stable andstrong products and produce the highest cash flow. Stars are SBUs with a high share of high growth markets that may need extra cash to finance their own rapid future growth, likely to become cash cows and they produce a lot of cash. Question marks are SBUs with a low share of high growth markets, they need large injections of cash just to maintain their market share and they are weak with no cash flow. Dogs are SBUs with low shares of slow growth markets, they don’t hold promise of ever becoming real winners for the organization and they have weak to no cash flow. What are the four different strategies marketers employ? Describe each of them.The four strategies are build, hold, harvest, and disinvest. Build strategy is to improve market position, increase promotion and adjust price and distribution to improve performance; applies to stars and question marks. Hold strategy remains with current position, maintain marketing effort; applies to cash cows. Harvest strategy is selling SBU’s to gain a short term increase in cash flow, happens when the strategies focus of the company changes; applies to cash cows and stars. Disinvest strategy is utilizing resources better, withdraw marketing support; applies to dogs.Be able to draw and label the Market-Product Analysis Grid. Market Product analysis grid is broken up into four market product strategies. Market penetration is a marketing strategy to increase sales of current products in current markets. Market development is a marketing strategy to sell current products to new markets. Product development is a strategy of selling new products to current markets.Diversification is a marketing strategy of developing new products and selling them in new markets What is the strategic marketing process? The strategic marketing process is the process of engaging in the strategic marketing process, where an organization allocates its “marketing mix” resources to reach its targetmarkets. It is engaging in a marketing plan, which is a road map for the marketing activities of an organization for a specified future period of time. Identify and describe the three phases of the strategic marketing process. The three phases are the planning phase, the implementation phase, and the evaluation phase. The planning phase includes situation analysis, market product focus, and the marketing program. The implementation phase involves carrying out the marketing planthat emerges from the planning phase. The evaluation phase seeks to keep the marketing program moving in the direction set for it. What is a SWOT analysis? Situation analysis involves taking stock of where the firm or product has been recently, where it is now, and where it is headed.What does SWOT stand for? SWOT stands for strengths, weaknesses, opportunities, and threats. Lecture 8 (September 30) The Marketing Environment Where do environmental trends arise? Environmental trends arise from social, economic, technological, competitive andregulatory forces. Define social forces.Social forces include demographic characteristics of the population and its values. Changes in these forces can have a dramatic impact on marketing strategy. What is social marketing? Social marketing is marketing that is still concerned with the firm’s bottom line, but also consider social profit. Social profit is the net benefit the firm and society receive as a result of the firm’s ethics and socially responsible behavior. Define green marketing and give an example.Green marketing is a marketing strategy that supports environmental stewardship by creating an environmentally based benefit that is both relevant and differentiating in theminds of consumers. What is cause marketing?Cause marketing is a strategy whose goal is to serve society by joining forces with a not for profit organization dedicated to addressing or solving a social issue. What is cultural diversity?Cultural diversity is a strategy that serves the community by actively seeking to include people both genders, races, ethnicity, and religions among its employees, customers, suppliers and channel partners. What are the two types of consumer income?The two types of consumer income are disposable and discretionary income. Disposable income is the money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation. Discretionary income is the money that remains after paying for taxes and necessities. Explain the political-legal environment. The legal environment includes local, state, national and global laws and regulations thataffect business. What is a patent law? Patent law gives the inventors the right to exclude others from marketing, using or selling products that infringe the patented invention. What is a copyright law?Copyright law gives the author of literacy; dramatic, musical or artistic work the exclusive right to print, perform, or otherwise copy that work.What does the digital millennium copyright act state?It states that digital technology has necessitated new copyright legislation to improve protection of copyrighted digital products and protection from devices designed to circumvent against antipiracy


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