Chapter 2 Vocab

SWOT analysis

An assessment that lists and analyzes the company’s strengths and weaknesses and the opportunities and threats that surround it.

PEST analysis

The scanning of outside influences on an organization.

Marketing Plan

A formal, written document that directs a company’s activities for a specific period of time.

Executive Summary

A brief overview of the entire marketing plan.

Situation analysis

The study of the internal and external factors that affect marketing strategies.

Marketing Strategy

Identifies target markets and sets marketing mix choices that focus on those market’s.

Sales Forecast

The projection of probable future sales in units or dollars.

Performance Standard

Expectation for performance that reflects the plan’s objective.

Market segmentation

The process of classifying people who form a given market into even smaller groups.

Demographics

Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, education, and occupation.

Disposable income

The money left after taking out taxes.

Discretionary income

The money left after paying for basic living necessities such as food, shelter, and clothing.

Geographics

Segmentation of the market based on where people live.

Psychographics

Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.

Mass Marketing

Involves using a single marketing strategy to reach all customers.