week 5 Flashcards
(30 cards)
Decrease in variable costs per unit – based on the learning effect – as the company gains experience in producing and selling the product.
Experience curve
Movement of cash into and out of a company, based on receipts and disbursements
Cash flow
The percentage of the total market or of total industry sales of a product held by a company
Market share
Marketing approach to gain a competitive advantage in an industry through a cost leadership, a differentiation or a focus strategy.
Generic strategy
Generic strategy that involves cutting expenses and reducing prices of standardized products in order to gain market share by appealing to pricesensitive customers
Cost leadership strategy
Charging premium prices for high quality products or unique services that customers perceive as superior to other brands.
Differentiation strategy
Niche strategy in which a company charges low prices, made possible by a cost advantage in a narrow target market through reduced expenses.
Cost focus strategy
Offering services or products to a limited target market that are significantly different from those of competitors.
Differentiation focus strategy
Increasing sales volume by introducing new products to attract customers in new markets or by acquiring a company not related to the firm’s current business.
Diversification strategy
Structure for making and implementing decisions about the marketing mix, for example through a product management system.
Marketing organization
Marketeer who develops and implements the strategic and annual plans for a particular product or product line.
Product manager
Managerial document that analyses the marketing situation – including opportunities and threats – and specifies how the organization intends to use its resources and marketing tools to implement the marketing strategy and achieve its formulated objectives for a product line, brand, or the entire business.
Marketing plan
How an organization – in light of its mission, core competencies and current environment – intends to achieve its long-term objectives
Business strategy
Part of the business strategy that describes how the company – within its business definition – intends to achieve its long-term marketing objectives, including implications for deciding on target markets, marketing mix variables and positioning.
Marketing strategy
Blueprint for action – based on the marketing mix – detailing which measures must be taken when, to meet the short-term objectives
Marketing tactics
A four step process of 1) setting specific marketing goals, 2) measuring progress toward realizing these goals, 3) comparing the actual results with the goals, and 4) taking corrective action, when necessary.
Marketing control
Course of action to be followed – as an alternative to the primary marketing plan – in the event of major changes in an existing situation, such as an unanticipated threat or opportunity.
Contingency plan
A systematic, critical, and impartial review and appraisal of the total marketing operation.
Marketing audit
The process of converting a plan into action through executing detailed marketing action plans.
Implementation
Departments (e.g. production) and resources (e.g. financial means) that are part of the organization, but outside of the marketing department .
Microenvironmental factors
A company’s functional areas or departments – including the
organizational structure and corporate culture – and its available resources (financial, commercial, technical, natural and human) that it may use to achieve its objectives.
Internal environment
Influences and groups originating outside the organization in the macro- and meso-environment that are uncontrollable but influence its strategy and performance.
External environment
Monitoring and evaluating the company’s external environment to identify opportunities and threats
Environmental analysis
The firm’s immediate external environment in which it interacts with customers, suppliers, intermediaries, competitors and public groups that, while uncontrollable, can be influenced.
Mesoenvironmental factors
