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Flashcards in Chapter 3 Deck (32):

business planning

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


business plan

plan that includes the decisions that guide the entire organization


market plan

document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies how the company will implement and control the strategies embedded in the plan


strategic planning

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


strategic business units (SBU's)

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


functional planning

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


market planning

functional planning marketers do; market planning typically includes both a broad 3-5 year marketing plan to support the firm's strategic plan and a detailed annual plan for the coming year


operational planning

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


mission statement

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


situation analysis

assessment of a firm's internal and external environments


internal environment

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


external environment

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


SWOT analysis

analysis of an organization's strengths and weaknesses and the opportunities and threats in its external environment (Strengths, Weakness, Opportunities, and Threats)


business portfolio

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


portfolio analysis

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


BCG growth-market share matrix

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



SBU's with products that have a dominant market share in high-growth markets


cash cows

SBU's with a dominant market share in a low-growth-potential market


question marks

SBU's with low market shares in fast-growth markets



SBU's with a small share of a slow-growth market; business that offer specialized products in limited markets that are not likely to grow quickly


market penetrating strategies

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


market development strategies

growth strategies that introduce existing products to new markets


product development strategies

growth strategies that focus on selling new products in existing markets


diversification strategies

growth strategies that emphasize both new products and new markets



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


activity metrics

metrics focused on measuring and tracking specific activities taken with a firm that are part of different marketing processes


outcome metrics

metrics focused on measuring and tracking specific events identified as key business outcomes that result from marketing processes


return on marketing investment (ROMI)

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


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"


leading indicators

performance indicators that provide insight into the performance of current efforts in a way that allows a marketer to adjust relevant marketing activities (hopefully) resulting in performance improvements against the current action plan


lagging indicators

performance indicators that provide insight into the performance of an action plan based on outcomes realized


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 task