Final Exam - Chapter 2 Flashcards
Strategic Marketing Management
The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Effectiveness
the degree to which long-term customer relationships help achieve an organization’s objectives
Efficiency
minimizing the resources an organization uses to achieve a specific level of desired customer relationships
Strategic Planning
the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy (waterfall effect)
Mission Statement
a long-term view, or vision, of what the organization wants to become; goals derived from m.s.; who are our customers? What is our core competency?
Waterfall Effect
Mission Statement Corporate Strategy Business-Unit Strategy Marketing Strategy Marketing Mix Elements (4Ps)
Corporate Strategy
determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to reach the organization’s goals
Broad Issues Corporate Strategy Planners are Concerned With
corporate culture competition differentiation diversification interrelationships among business units environmental/social issues
Strategic Business Unit (SBU)
a division, product line, or other profit center within the parent company
Market
is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
Market Share
The percentage of a market that actually buys a specific product from a particular company is referred to as that product’s (or business unit’s)
Market Growth/Market Share Matrix
business tool based on the philosophy that a product’s market growth rate and its market share are important consideration in determining its market strategy (developed by the Boston Consulting Group)
Stars
high product-market growth/high market share
Chash Cows
low product-market growth/high market share
Dogs
low product-market growth/low market share
Question Marks
high product-market growth/low market share
Core Competencies
things a company does extremely well, which sometimes give it an advantage over its competition
Market Opportunity
a combination of circumstances and timing that permits an organization to take action to reach a particular target market
Strategic Windows
temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
Competitive Advantage
is the result of a company matching a core competency to opportunities it has discovered in the marketplace
SWOT Analysis
a tool marketers use to assess an organization’s strengths, weaknesses, opportunities, and threats
Strengths
competitive advantages or core competencies that give the company an advantage in meeting the needs of its target market
Weaknesses
any limitations a company faces in developing or implementing a marketing strategy
Opportunities
favorable conditions in the environment that could produce rewards for the organization if acted on properly
Threats
conditions or barriers that may prevent the company from reaching its objectives
First-Mover Advantage
is the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace
Late-Mover Advantage
is the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace
Marketing Objective
a statement of what is to be accomplished though marketing activities
Marketing Strategy
a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the need of that marketing
Sustainable Competitive Advantage
one that the competition cannot copy in the foreseeable future
Marketing Implementation
the process of putting marketing strategies into action
Centralized Organizations
authority is concentrated at the top level; very little delegation to lower levels
Decentralized Organizations
decision making authority is delegated as far down the chain of command as possible
Strategic Performance Evaluation
establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy if needed
Performance Standard
the expected level of performance against which actual perforamce can be compared
Sales Analysis
uses sales figures to evaluate a firm’s current performance
Marketing Cost Analysis
breaks down and classifies costs to determine which are associated with specific marketing efforts
Marketing Plan
written document that specifies the activities to be performed to implement and control the organization’s marketing strategies
