Marketing CHAPTER 2
Marketing CHAPTER 2
Marketing CHAPTER 2
MKT1014/ MKT2224
WEEK 3 – LECTURE 3
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Chapter 2
Company and Marketing Strategy
Partnering to Build Customer
Engagement, Value, and
Relationships
• Business objectives
– Build profitable customer relationships
– Invest in research
– Improve profits
• Marketing objectives
– Increase market share
– Create local partnerships
– Increase promotion
Mars Inc. is not only the world’s number-one candy maker; it is also a world-
leading pet nutrition and health-care company.
• Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth.
They will eventually turn into cash cows.
• Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring
less investment to maintain market share.
• Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share.
• Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves
but do not promise to be large sources of cash.
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Market development involves identifying and developing new markets for its current products.
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Product development involves offering modified or new products to current markets such as by moving into
new product categories.
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Diversification involves starting up or buying businesses beyond its current products and markets. For
example, the company could acquire a company that operates in different market segments with a different
product mix.
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Designing The Business Portfolio
(7 of 8)
Developing Strategies for Growth and Downsizing
Strategies for growth: To maintain its incredible growth,
Starbucks has brewed up an ambitious, multipronged growth
strategy.
A C E
B D
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Question 2
Which of the following is true with regard to strategic planning?
A) At the corporate level, the company starts the strategic planning
process by determining what portfolio of businesses and products is best
for the company.
B) A strategic plan deals with a company's short-term goals.
C) The focus of strategic planning is to define a game plan for long-run
survival and growth.
D) The strategic plan is a statement of an organization's purpose.
E) Strategic planning involves identifying segments of consumers with
identical preferences.
A C E
B D
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Question 3
Which of the following is NOT a market-oriented business definition?
A) "We empower customers to realize their dreams."
B) "We make high-quality consumer food products."
C) "We sell success and status."
D) "We create the Hilton experience."
E) "We bring innovation to every home."
A C E
B D
A C E
B D
A C E
B D
A C E
B D
A C E
B D
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Question 2
Each department in a company that carries out value-creating activities
can be thought of as a link in the company's ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
A C E
B D
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Question 2
Each department in a company that carries out value-creating activities
can be thought of as a link in the company's ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
A C E
B D
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Question 3
Which of the following is an element of the marketing mix?
A) place
B) education
C) needs
D) wants
E) esteem
A C E
B D
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Question 4
Which of the following is true with regard to a SWOT analysis?
A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company's overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation
in the market.
A C E
B D
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End of Chapter 2 Part – 2