Chapter 2 Vocabulary Flashcards
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Strategic planning
A statement of the organization’s purpose-what it wants to accomplish in the larger environment
Mission statement
Four steps in strategic planning
Defining the company mission
Setting the company objectives and goals (corporate level)
Designing the business portfolio
Planning marketing and other functional strategies (business unit, product, and market level)
The collection of businesses and products that make up the company
Business portfolio
The process by which management evaluated the products and businesses that make up the company
Portfolio analysis
A strategic business unit (SBU) can be
A company division, a product line within a division or sometimes a single product or brand
A portfolio planning method that evaluates a company’s SBUs in terms of market growth and relative market share
Growth-share matrix
High relative market share and low growth rate
Cash cow
Low relative market share and low growth rate
Dog
Low relative market share and high growth rate
Question mark
High relative market share and high growth rate
Star
Stars overtime will become what
Cash cows
Four strategies for each SBU
Build: invest more to build shares
Hold: invest just enough to hold shares at current level
Harvest: milk short term cash flow regardless of long term effect
Divest: selling or phasing out and using the resources elsewhere
Investing more
Build
Investing just enough
Hold
Milking short term cash flow regardless of the long term effect
Harvest
Selling or phasing out and using resources elsewhere
Divest
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification
Product/market expansion grid
Company growth by increasing sales of current products to current market segments without changing the product
Market penetration
Company growth by identifying and developing new market segments for current company product
Market development
Company growth by offering modified or new products to current market segments
Product development
Company growth through starting up or acquiring businesses outside the company’s current products and markets
Diversification
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Marketing strategy
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Market segmentation
A group of customers who respond in a similar way to a given set of marketing efforts
Market segment
The process of evaluating each market segments attractiveness and selecting one or more segments to enter
Market targeting
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers
Positioning
Actually differentiating the market offering to create superior customer value
Differentiation
The set of tactical marketing tools—product, price, place and promotion— that the firm blends to produce the response it wants in the target market
Marketing mix
The goods and services combination the company offers to the target market
Product
The amount of money customers must pay to obtain the product
Price
Company activities that make the product available to target consumers
Place
Activities that communicate the merits of the product and persuade target customers to buy it
Promotion
An overall evaluation of the company’s strengths, weaknesses, opportunities, and threats
SWOT analysis
Internal and positive: internal capabilities that may help a company reach its objectives
Strengths
External and positive: external factors that the company may be able to exploit to its advantage
Opportunities
Internal and negative: internal limitations that may interfere with a company’s ability to achieve its objectives
Weaknesses
External and negative: Current and emerging external factors that may challenge the company’s performance
Threats
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Marketing implementation
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
Marketing control
