PCM Key Terms - Domain 2, Topic 2

Question 2

Key Terms

Benchmarking

Answer 2

Comparing the quality of the company’s goods, services, or processes with that of its best-performing competitors

Question 3

Key Terms

Break-Even Analysis

Answer 3

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output

Question 4

Key Terms

Business Model

Answer 4

The strategies an organization develops to provide value to the customers it serves

Question 5

Key Terms

Business Plan

Answer 5

A road map for the entire organization for a specified future time period, such as one year or five years

Question 6

Key Terms

Competitive Advantage

Answer 6

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

Question 7

Key Terms

Core Competencies

Answer 7

Things a company does extremely well, which sometimes give it an advantage over its competition

Question 8

Key Terms

Core Values

Answer 8

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time

Question 9

Key Terms

Cross-Functional Teams

Answer 9

Consist of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.

Question 10

Key Terms

Customer Lifetime Value

Answer 10

The expected financial contribution from a particular customer to the firm’s profits over the course of their entire relationship

Question 11

Key Terms

Functional Grouping

Answer 11

Organizational groupings that represent the different departments or business activities within a firm

Question 12

Key Terms

Goals (or Objectives)

Answer 12

The statements of an accomplishment of a task to be achieved, often by a specific time.

Question 13

Key Terms

Internal Marketing

Answer 13

A management philosophy that coordinates internal exchanges between the organization and its employees to achieve successful external exchanges between the organization and its customers

Question 14

Key Terms

Line Positions

Answer 14

Consist of managers who have the authority and responsibility to issue orders to the people who report to them

Question 15

Key Terms

Market Opportunity

Answer 15

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Question 16

Key Terms

Market Share

Answer 16

The ratio of the firm’s sales revenues or unit sales to those of the industry (competitors plus the firm itself)

Question 17

Key Terms

Marketing Dashboard

Answer 17

The visual computer display of the essential information related to achieving a marketing objective

Question 18

Key Terms

Marketing Management

Answer 18

The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently

Question 19

Key Terms

Marketing Metric

Answer 19

A measure of the quantitative value to trend of a marketing activity or result

Question 20

Key Terms

Marketing Plan

Answer 20

A written document that specifies the activities to be performed to implement and control the organization’s marketing activities

Question 21

Key Terms

Marketing Strategy

Answer 21

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

Question 22

Key Terms

Marketing Tactics

Answer 22

The detailed day-to-day operational decisions essential to the overall success of marketing strategies

Question 23

Key Terms

Mission

Answer 23

A long-term view, or vision, of what the organization wants to become

Question 24

Key Terms

Mission Statement

Answer 24

A long term view, or vision, of what the organization wants to become

Question 25

Key Terms

Planning Gap

Answer 25

The difference between the projection of the projection of the path to reach the goal and the projection of the path to the results of a plan already in place; the ultimate goal of the firm’s marketing plan is to “fill in” this gap

Question 26

Key Terms

Points of Difference

Answer 26

Those characteristics of a product that make it superior to competitive substitutes

Question 27

Key Terms

Product Line Grouping

Answer 27

Organizational groupings in which a unit is responsible for specific product offerings

Question 28

Key Terms

Situation Analysis

Answer 28

Involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external factors and trends affecting it

Question 29

Key Terms

Staff Positions

Answer 29

Consist of people who have the authority and responsibility to advise people in line positions but cannot issue direct orders to them

Question 30

Key Terms

Strategic Business Unit (SBU)

Answer 30

A division, product line, or other profit center within the parent company

Question 31

Key Terms

Strategic Planning

Answer 31

The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

Question 32

Key Terms

Strategy

Answer 32

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals

Question 33

Key Terms

Total Quality Management (TQM)

Answer 33

A philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality