Marketing Chapter 2

Front 1

Strategic Business Unit (SBU)

Back 1

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

Front 2

Market Penetration

Back 2

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

Front 3

Product Development

Back 3

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

Front 4

Diversification

Back 4

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

Front 5

Portfolio Matrix

Back 5

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

Front 6

Star

Back 6

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

Front 7

Cash Cow

Back 7

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

Front 8

Problem Child (Question Mark)

Back 8

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

Front 9

Dog

Back 9

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

Front 10

Planning

Back 10

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

Front 11

Marketing Planning

Back 11

Designing activities relating to marketing objectives and the changing marketing environment

Front 12

Marketing Plan

Back 12

A written document that acts as a guidebook of marketing activities for the marketing manager

Front 13

Mission Statement

Back 13

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 14

Marketing Myopia

Back 14

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

Front 15

SWOT analysis

Back 15

Identifying internal (s)strengths and (w)weaknesses and also examining (o)external opportunities and (t)threats

Front 16

Environmental Scanning

Back 16

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 17

Competitive Advantage

Back 17

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

Front 18

Cost Competitive Advantage

Back 18

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

Front 19

Experience Curves

Back 19

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

Front 20

Product/Service differentiation competitive advantage

Back 20

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

Front 21

Niche Competitive Advantage

Back 21

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

Front 22

Sustainable Competitive Advantage

Back 22

An advantage that cannot be copied by the competition

Front 23

Marketing Objective

Back 23

A statement of what is to be accomplished through marketing activies

Front 24

Marketing Strategy

Back 24

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 25

Market Opportunity Analysis (MOA)

Back 25

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 26

Marketing Mix

Back 26

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

Front 27

Four Ps

Back 27

Product, place, promotion, and price, which together make up the marketing mix

Front 28

Implementation

Back 28

The process that turns a marketing plan into action assignment and ensures that these assignments are executed in a way that accomplishes the plan's objectives

Front 29

Evaluation

Back 29

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

Front 30

Control

Back 30

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

Front 31

Marketing Audit

Back 31

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

Front 32

Ethics

Back 32

The moral principles or values that generally govern the conduct of an individual or a group