Chapter 2-Strategic Planning for Competitive Advantage

evaluation

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

SWOT analysis

identifying internal strengths, weaknesses, and also examining external opportunities and threats.

cash cow

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

dog

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

star

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

problem child (question mark)

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

marketing mix

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

marketing plan

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

control

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

market development

a marketing strategy that entails attracting new customers to existing products

product development

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

market penetration

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

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 the competition.

mission statement

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.

marketing objective

a statement of what is to be accomplished through marketing activities

diversification

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

strategic business unit (SBU)

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

marketing audit

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

portfolio matrix

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

sustainable competitive advantage

an advantage that cannot be copied by the competition

cost competitive advantage

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

environmental scanning

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

experience curves

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

marketing myopia

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

marketing planning

designing activities relating to marketing objectives and the changing marketing environment

four Ps

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

marketing strategy

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.

niche competitive advantage

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

marketing opportunity analysis (MOA)

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.

strategic planning

the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

planning

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

implementation

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

product/service differentiation competitive advantage

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