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Flashcards in Chapter 3 Deck (27):
1

Business planning

An ongoing process of making decisions that guides the firm both in the short term and in the long term

2

Business plan

A plan that includes the decisions that guide the entire organization

3

Marketing plan

A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.

4

Strategic planning

A managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival.

5

Strategic business units (SBUs)

Individual units within the firm that operates like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

6

Functional planning

A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic planning

7

Operational Planning

A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization's functional plans.

8

Mission statement

A formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.

9

Situation analysis

An assessment of a firm's internal and external environments.

10

Internal environment

The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the oranization.

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External environment

The uncontrollable elements outside an organization that may affect its performance either positively or negatively.

12

SWOT analysis

An analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment.

13

Business portfolio

The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.

14

Portfolio analysis

A management tool for evaluating a firm's business mix and assessing the potential of an organization's strategic business units.

15

BCB growth-market share matrix

A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

16

Stars

SBUs with products that have a dominant market share in high-growth markets.

17

Cash cows

SBUs with a dominant marketing share in a low-growth-potential market.

18

Question marks

SBUs with low market shares in fast-growth markets.

19

Dogs

SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly.

20

Market penetration strategies

Growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets.

21

Market development strategies

Growth strategies that introduce existing products to new markets

22

Product development strategies

Growth strategies that focus on selling new products in existing markets.

23

Diversification strategies

Growth strategies that emphasize both new products and new markets.

24

Control

A process that entails measuring actual performance, comparing, this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis.

25

Return on marketing investment (ROMI)

Quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise.

26

Action plans

Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as"marketing programs"

27

Operational plans

Plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines to accomplish the tasks.