Marketing 210 Exam 1 Chapter 2 Flashcards
(27 cards)
Portfolio Matrix
Classifies each SBU (Strategic business unit) by its present or forecast growth and market share.
Star
Fast-growing market leader.
Cash Cow
SBU (Strategic business unit) that generates more cash than it needs to maintain its market share.
Problem Child AKA Question Mark AKA ?
Rapid growth but poor profit margins. It has a low market share in a high-growth industry.
Dog
Low growth potential and a small market share.
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
Marketing Planning
Involves designing activities relating to marketing objectives and the changing marketing environment. Marketing planning is the basis for all marketing strategies and decisions.
Marketing Plan
Issues such as product lines, distribution channels, marketing communications, and pricing are all delineated in the marketing plan.
Mission Statement
The foundation of any marketing plan is the firm’s mission statement, which answers the question “What business are we in?”.
Marketing Myopia
Defines a business in terms of goods and services rather than in terms of the benefits customers seek.
SWOT analyst
strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T).
Environmental Scanning
The 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.
Competitive Advantage
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.
Cost Competitive Advantage
Low-cost competitor in an industry while maintaining satisfactory profit margins.
Experience Curves
Costs decline at a predictable rate as experience with a product increases.
Product/Service Differentiation Competitive Advantage
When a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
Niche Competitive Advantage
Target and effectively serve a single segment of the market.
Sustainable Competitive Advantage
One that cannot be copied by the competition.
Marketing Objective
A statement of what is to be accomplished through marketing activities.
Marketing Stratagy
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.
(MOA)
Market Opportunity Analysis
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.
Marketing Mix
A unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) is designed to produce mutually satisfying exchanges with a target market.
The Four Characteristics of a Marketing Audit
Comprehensive: The marketing audit covers all the major marketing issues facing an organization—not just trouble spots.
Systematic: The marketing audit takes place in an orderly sequence and covers the organization’s marketing environment, internal marketing system, and specific marketing activities. The diagnosis is followed by an action plan with both short-run and long-run proposals for improving overall marketing effectiveness.
Independent: The marketing audit is normally conducted by an inside or outside party that is independent enough to have top management’s confidence and has the ability to be objective.
Periodic: The marketing audit should be carried out on a regular schedule instead of only in a crisis. Whether it seems successful or is in deep trouble, any organization can benefit greatly from such an audit.
Implemation
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.
