Chapter 2

• What is an organization?

  Legal that consists of people who share the same mission
• What are the 3 types of organizations?

  (1) For-Profit

  (2) Non-Profit

  (3) Govt agencies
• What is For-profit?

  Private owned business that earns profit to survive
• What is non-profit?

  Nongovernment organization that serves its customers and does not have profit as their goal
• What is an industry?

  group of companies with similar products
• What does social entrepreneurship address?

  social needs and issues
• What is a strategy?

  Long-term course of plan designed to deliver a unique customer experience while achieving its goals
• What are the three levels of organizations?

  (1) Corporate Level - directs overall strategy (top management)

  (2) Strategic Business Unit (SBU) - Divisions set more specific direction to a defined target market

  (3) Functional - Specialists who create value (departments)
• What are cross-functional team?

  Different departments contribute to a performance goal
• What are three things that make up a "visionary" organization?

  (1) Foundation (why it exists?)

  (2) Direction (what does it do?)

  (3) Strategy (how will it do it?)
• What is the foundation? Or why do organizations exist?


  (1) Organizational purpose

  (2) Core values

  (3) Mission or vision

  (4) Organizational culture
• What is organization purpose?

  Describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work
• What are core values?

  Fundamental, passionate, and enduring principles that inspire OUTSIDERS
• What is a Mission (vision)?

  Clear, concise, and meaningful statement of organization's function
• What is organizational culture?

  Beliefs, values, and behaviors shared within an organization.
• What is the organization's direction? Or what will it do?

  (1) Business

  (2) Business model

  (3) Goals or objectives
• What is a business?

  Clear, broad, underlying industry or market sector of an organization’s offering (what we do)
• What is a business model?

  Strategies organization develops to provide value customers (change over time)
• What are goals or objectives?

  Statements of a task to be achieved, by a specific time
• List some goals or objectives?

  (1) Profit

  (2) Sales

  (3) Market share - ratio of sales revenue to total sales revenue

  (4) Quality

  (5) Satisfaction

  (6) Employee welfare

  (7) Social Responsibility

  (8) Efficiency
• What are some organizational strategies? how will it do it?

  (1) Strategies vary by level (C,S,F)

  (2) Vary by product

  (3) Marketing Plan
• What is a Marketing plan?


  Road map for the marketing actions
• What is a marketing dashboard?

  Visual display of the essential information related to achieving a marketing objective
• What is a Marketing metric?

  Measure of the quantitative value or trend of a marketing action 
• What is data visualization?

  Presents info of marketing metrics on a graph so it easy to see and monitor performance
• What are two questions needed to be answered to set a strategic direction?

  (1) Where are we now?

  (2) Where do we want to go?
• Where are we now?

  (1) Identify competencies

  • Competitive advantage to competitors:
  • How it benefits customers
  • How it compares to competitors
• Where do we want to go?


  (1) Business Portfolio Analysis (BCG Matrix)

  (2) Diversification Analysis
• What is the Business Portfolio (BCG Matrix)?

  Used to quantify performance measures and growth targets
• What is included in the BCG Matrix?

  (1) Question marks: Low share, high market growth

  (2) Stars: High share, High market growth

  (3) Cash Cows: Generates large amts of cast

  (4) Dogs: Low share, Low market growth
• What is the Diversification analysis?

  Helps a firm search for growth opportunities from among current and new markets as well as current and new products.
• What are the 4 types of Diversification Analysis?

  (1) Market penetration - Increase sales of current product in current market

  (2) Market development - Sell current products to new markets

  (3) Product Development - Sell new products to current markets

  (4) Diversification - Sell new products to new markets
• What is the strategic marketing process?

  Approach whereby an organization allocates its marketing mix resources to reach its target markets
• What are the 4 guided principals of the strategic marketing process?

  (1) Customers are different

  (2) Customers change

  (3) Competitors change and react

  (4) Resources are limited
• What are the 3 phases of the strategic marketing process?

  (1) Plan

  (2) Implement

  (3) Evaluate
• What are the steps of the Planning Phase?

  (1) Situational Analysis

  (2) Develop market-product focus, customer value, and goals

  (3) Design marketing program
• What is situational analysis?

  Assessment of current business environment
• What is SWOT analysis?

  Strengths

  Weakness

  Opportunities

  Threats
• What is Marketing segmentation? (2)

  Putting buyers into groups based on common needs and response to marketing action
• What is Customer value proposition?(2)

  Benefits the organization promises to satisfy for customers