mk3010 ch2

Strategic (management) planning

The managerial process of developing and maintaining a match between an organization’s resources and its market opportunities.

Marketing strategy

Specifies a target market and a related marketing mix.

Target market

A fairly homogeneous (similar) group of customers to whom a company wishes to appeal.

Marketing mix

The controllable variables that the company puts together to satisfy a target group.

Target marketing

A marketing mix is tailored to fit some specific target customers.

Mass marketing

The typical production-oriented approach that vaguely aims at everyone with the same marketing mix.

Channel of distribution

Any series of firms or individuals who participate in the flow of products from producer to final user or consumer.

Personal selling

Direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or even via an online conference.

Customer service

A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase; often the key to building repeat business.

Mass selling

Communicating with large numbers of potential customers at the same time.

Advertising

Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Publicity

Any unpaid form of nonpersonal presentation of ideas, goods, or services.

Sales promotion

Those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel.

Marketing plan

A written statement of a marketing strategy and the time-related details for carrying out the strategy.

Implementation

Putting marketing plans into operation.

Operational decisions

Short-run decisions to help implement strategies.

Marketing program

Blends all of the firm’s marketing plans into one big plan.

Customer equity

The expected earnings stream (profitability) of a firm’s current and prospective customers over some period of time.

Breakthrough opportunities

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.

Competitive advantage

A firm has a marketing mix that the target market sees as better than a competitor’s mix.

S.W.O.T. analysis

Identifies and lists the firm’s strengths and weaknesses and its opportunities and threats.

Differentiation

The marketing mix is distinct from and better than what’s available from a competitor.

Market penetration

Trying to increase sales of a firm’s present products in its present markets—probably through a more aggressive marketing mix.

Market development

Trying to increase sales by selling present products in new markets.

Product development

Offering new or improved products for present markets.

Diversification

Moving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.