BUS2 130, Exam 1, SJSU questions
and answers
Marketing's role within a firm✔✔Marketing should be a profitable investment that
forces business to confront uncertainty in the environment, like
changes in consumer tastes or
changes in regulations.
What is the overall plan for marketing strategy?✔✔segmentations, targeting,
positioning
Marketing Mix (4 P's)✔✔product, pricing,
place (distribution),
promotion (communication).
Needs✔✔states of felt deprivations.
Biogenic Needs✔✔needs present at birth.
Psychogenic Needs✔✔needs learned in the process of enculturation (belonging, self
expression, knowledge acquisition, etc)
Wants✔✔options used to fill needs
Demands✔✔wants backed by consumer buying power.
Customer Equity✔✔The sum of the lifetime values of all a company's current and
potential customers. companies must manage it carefully, and view customers as
assets that need to be maximized.
It is dependent upon customer loyalty from a firm's profitable customers.
It is a reflection of a company's future.
In order to acquire new customers, companies must consider:✔✔the values of
customers and the acquisition of costs
the current value of a customer is a complex formula that includes:✔✔Gross profit
(revenue-costs of goods sold);
Cost of maintaining customer;
Discount rate (considered for each year of expected revenue from that customer);
Cost of acquiring new customers
Strategic Planning✔✔The process of developing and maintaining a strategic fit
between the organization's goals and capabilities and changing marketing
opportunities
, Mission Statements✔✔Lead to setting business and marketing objectives/goals, and
guide decisions regarding what portfolio of businesses and products is best for the
company.
What does business planning entail?✔✔Current portfolio analysis, followed by
decisions about what businesses should receive more, less or no investment;
Planners shape the future portfolio by developing strategies for growth and/or
downsizing
What are business portfolios developed in support of?✔✔Business portfolios are
developed in support of its strategic goals
what are the four categories in which SBUs travel through the BCG?✔✔Question
Marks: High growth, low share;
Stars: high growth, high share products;
Cash cows: low growth, high share;
Dogs: low growth, low share
How may companies determine the future?✔✔Companies can determine the future,
using strategies of building, holding, harvesting, or divesting each SBU.
Drawbacks of portfolio planning include what?✔✔Difficult to execute, time
consuming, and costly to implement;
Hard to define SBUs and the measurement of relative market share and growth;
Helpful for classifying current business. They offer little or no advice for future
planning
Strategies for Growth✔✔Market penetration: making more sales to current
customers without changing products;
Market development: identifying and developing new markets for a company's
products;
Product develop: offering modified or new products to current markets;
Diversification: companies consider acquiring or starting new businesses unrelated
to their core competencies
The strategic marketing process PLANNING PHASE includes✔✔Situational SWAT
analysis; Market-Product Focus and Goal Setting (targeting and positioning);
Program of the 4 Ps.
Situational SWOT analysis✔✔Build upon STRENGTHS;
Correct WEAKNESSES;
Exploit OPPORTUNITIES; Avoid THREATS
What are the steps taken for Market-Product Focus and Goal Setting (targeting and
positioning)✔✔Set marketing and product goals (e.g. generally to whom and when);
Select target markets (specifically to whom);
Find points of difference
and answers
Marketing's role within a firm✔✔Marketing should be a profitable investment that
forces business to confront uncertainty in the environment, like
changes in consumer tastes or
changes in regulations.
What is the overall plan for marketing strategy?✔✔segmentations, targeting,
positioning
Marketing Mix (4 P's)✔✔product, pricing,
place (distribution),
promotion (communication).
Needs✔✔states of felt deprivations.
Biogenic Needs✔✔needs present at birth.
Psychogenic Needs✔✔needs learned in the process of enculturation (belonging, self
expression, knowledge acquisition, etc)
Wants✔✔options used to fill needs
Demands✔✔wants backed by consumer buying power.
Customer Equity✔✔The sum of the lifetime values of all a company's current and
potential customers. companies must manage it carefully, and view customers as
assets that need to be maximized.
It is dependent upon customer loyalty from a firm's profitable customers.
It is a reflection of a company's future.
In order to acquire new customers, companies must consider:✔✔the values of
customers and the acquisition of costs
the current value of a customer is a complex formula that includes:✔✔Gross profit
(revenue-costs of goods sold);
Cost of maintaining customer;
Discount rate (considered for each year of expected revenue from that customer);
Cost of acquiring new customers
Strategic Planning✔✔The process of developing and maintaining a strategic fit
between the organization's goals and capabilities and changing marketing
opportunities
, Mission Statements✔✔Lead to setting business and marketing objectives/goals, and
guide decisions regarding what portfolio of businesses and products is best for the
company.
What does business planning entail?✔✔Current portfolio analysis, followed by
decisions about what businesses should receive more, less or no investment;
Planners shape the future portfolio by developing strategies for growth and/or
downsizing
What are business portfolios developed in support of?✔✔Business portfolios are
developed in support of its strategic goals
what are the four categories in which SBUs travel through the BCG?✔✔Question
Marks: High growth, low share;
Stars: high growth, high share products;
Cash cows: low growth, high share;
Dogs: low growth, low share
How may companies determine the future?✔✔Companies can determine the future,
using strategies of building, holding, harvesting, or divesting each SBU.
Drawbacks of portfolio planning include what?✔✔Difficult to execute, time
consuming, and costly to implement;
Hard to define SBUs and the measurement of relative market share and growth;
Helpful for classifying current business. They offer little or no advice for future
planning
Strategies for Growth✔✔Market penetration: making more sales to current
customers without changing products;
Market development: identifying and developing new markets for a company's
products;
Product develop: offering modified or new products to current markets;
Diversification: companies consider acquiring or starting new businesses unrelated
to their core competencies
The strategic marketing process PLANNING PHASE includes✔✔Situational SWAT
analysis; Market-Product Focus and Goal Setting (targeting and positioning);
Program of the 4 Ps.
Situational SWOT analysis✔✔Build upon STRENGTHS;
Correct WEAKNESSES;
Exploit OPPORTUNITIES; Avoid THREATS
What are the steps taken for Market-Product Focus and Goal Setting (targeting and
positioning)✔✔Set marketing and product goals (e.g. generally to whom and when);
Select target markets (specifically to whom);
Find points of difference
