Chapter 15 - Marketing 6850

Business Firm

An organization that serves customers to earn a profit (the reward for the risk it undertakes)

Not-for-profit Organization

An organization that serves customers but does not have profit as an organizational goal.

Corporate Level

Top management directs overall strategy for the entire organization

Strategic Business Unit (SBU) Level:

A division of an organization that markets a set of related products to a clearly defined group of customers

Functional Level

Groups of specialists (e.g., Marketing, Finance, HR) where the strategic direction becomes very focused.

Core Values

Fundamental, passionate, and enduring principles that guide an organization

Mission

A statement of the organization’s function in society, often identifying its customers, markets, and products

Organizational Culture

A set of values, ideas, and attitudes that is learned and shared among the members of an organization

Marketing Dashboard

A visual computer display of essential information related to achieving a marketing objective

BCG Matrix (Portfolio Analysis)

A technique that managers use to quantify performance measures and growth targets to analyze their SBUs as though they were a collection of separate investments .

Stars

High market share, high growth rate

Cash Cows

High market share, low growth rate

Question Marks

Low market share, high growth rate

Dogs

Low market share, low growth rate

Market Penetration

Selling more current products to current markets

Market Development

Selling current products to new markets.

Product Development

Selling new products to current markets

Diversification

Selling new products to new markets

Situation (SWOT) Analysis

Taking stock of where the firm or product has been, where it is now, and where it is headed

• Internal: Strengths and Weaknesses.

• External: Opportunities and Threats.

Market-Product Focus & Goal Setting

Determining which products will be directed toward which customers

Marketing Program

Developing the marketing mix (4 Ps) and its budget

Marketing Plan Phases

Phase 1: Planning

Phase 2: Implementation

Phase 3: Evaluation

Part of Phase 1

Market-Product Focus & Goal Setting

Determining which products will be directed toward which customers

Marketing Program

Developing the marketing mix (4 Ps) and its budget

Phase 2: Implementation

Obtaining resources, designing the marketing organization, developing schedules, and executing the program.

Phase 3: Evaluation

Comparing results with plans to identify deviations, acting to correct negative deviations, and exploiting positive ones.