Chapter 2 Flashcards
strategic planning
the managerial process for creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities
planning
process of anticipating future events and determining strategies to achieve organizational objectives in the future.
marketing planning
involves designing activities relating to marketing objectives and the changing marketing environment
marketing plan
written document that acts as a guidebook of marketing activities for the marketing manager
why write it? it provides clearly stated activities that help employees and managers understand and work toward common goals
mission statement
answers the question, “What business are we in?”
marketing myopia
defining a business in terms of goods and services rather than in terms of the benefits customers seek.
strategic business unit
a subgroup of a single business or collection of related business within a larger business
SWOT analysis
the firm should identify its internal strengths and weaknesses and also examine external opportunities and threats
environmental scanning
the collection and interpretation of info about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
marketing objective
statement of what is to be accomplished through marketing activities realistic measurable time specific compared to a benchmark consistent with the organization's goals
competitive advantage
a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
cost competitive advantage
being low cost competitor in an industry while maintaining satisfactory profit margins
experience curve
tells us that costs decline at a predictable rate as experience with a product increases
product/service differentiation competitive advantage
exists when a firm provides something unique that is valuable to buyers beyond simply offering a low price
niche competitive advantage
seeks to target and effectively serve a single segment of the market
sustainable competitive advantage
one that cannot be copied by the competition
market penetration
tying to increase market share among existing customers
market developments
attracting new customers to existing products
product development
entails the creation of new products for present markets
diversification
a strategy of increasing sales by introducing new products into new markets
portfolio matrix
classifies each SBU by its present or forecast growth and market share
star
market leader and growing fast
cash cow
an SBU that usually generates more cash than it needs to maintain its market share
problem child(question mark)
shows rapid growth but poor profit margins
dog
low growth potential and a small market share
marketing strategy
involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
market opportunity analysis
the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
marketing mix
refers to a unique blend of product, place, promotion, pricing strategies(four P’s) designed to produce mutually satisfying exchanges with a target market
four p’s
product, place, promotion, pricing strategies
implementation
process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives
evaluation
entails gauging the extent to which marketing objectives have been achieved during the specified time
control
provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
marketing audit
a thorough, systematic, periodic evaluation of the objective, strategies, structure, and performance of the marketing organization, four parts
comprehensive, systematic, independent, periodic
