(Chapter 2) Strategic Planning For Competitive Advantage

Front 1

Strategic planning

Back 1

The managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

Front 2

Strategic business unit (SBU)

Back 2

A subgroup of a single business or collection of related businesses within the larger organization.

Front 3

Market penetration

Back 3

A market strategy that tries to increase market share among existing customers.

Front 4

Market development

Back 4

A marketing strategy that entails attracting new customers to existing products.

Front 5

Product development

Back 5

A marketing strategy that entails the creation of new products for present markets.

Front 6

Diversification

Back 6

A strategy of increasing sales by introducing new products into new markets.

Front 7

Portfolio matrix

Back 7

A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Front 8

Star

Back 8

In the portfolio matrix, a business unit that is a fast-growing market leader.

Front 9

Cash cow

Back 9

In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share.

Front 10

Problem child (question mark)

Back 10

In the portfolio matrix, a business unit that shows rapid growth but poor profit margins.

Front 11

Dog

Back 11

In the portfolio matrix, a business unit that has low growth potential and a small market share.

Front 12

Planning

Back 12

The process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Front 13

Marketing planning

Back 13

Designing activities relating to marketing objectives and the changing marketing environment.

Front 14

Marketing plan

Back 14

A writtern document that acts as a guidebook of Marketing activities for the marketing manager.

Front 15

Mission statement

Back 15

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

Front 16

Marketing myopia

Back 16

Defining a business in terms of goods and services rather than in terms of the benefits customers seek.

Front 17

SWOT analysis

Back 17

Identifying internal strengths(S) and weaknesses (W) and also examining external opportunities (O) and threats(T).

Front 18

Environmental scanning

Back 18

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Front 19

Competitive advantage

Back 19

A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

Front 20

Cost competitive advantage

Back 20

Being the low -cost competitor in an industry while maintaining satisfactory profit margins.

Front 21

Experience curves

Back 21

Curves that show costs declining at a predictable rates as experience with a product increases.

Front 22

Product/service differentiation competitive advantage

Back 22

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Front 23

Niche competitive advantage

Back 23

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.

Front 24

Sustainable competitive advantage

Back 24

An advantage that cannot be copied by the competition.

Front 25

Marketing objective

Back 25

A statement of what is to be accompanied through marketing activities. F

Front 26

Marketing strategy

Back 26

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.

Front 27

Market opportunity analysis (MOA)

Back 27

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.

Front 28

Marketing mix (four Ps)

Back 28

A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Front 29

Implementation

Back 29

The 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.

Front 30

Evaluation

Back 30

Gauging the extent to which the marketing objectives have been achieved during the specified time period.

Front 31

Control

Back 31

Provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help to organization reach those objectives within budget guidelines.

Front 32

Marketing audit

Back 32

A thorough, systematic, periodic evaluation of the objectives,strategies, structure, and performance of the marketing organization.