Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships – Key Vocabulary

Vocabulary flashcards covering major concepts, tools, and frameworks from Chapter 2 on company and marketing strategy.

Strategic Planning

A long-run game plan for survival and growth that aligns the company’s goals and capabilities with changing marketing opportunities.

Mission Statement

Market-oriented statement of an organization’s purpose, focused on satisfying basic customer needs and emphasizing company strengths.

Product-Oriented Definition

Business description that focuses on the products a company sells (e.g., “We sell coffee and snacks”).

Market-Oriented Definition

Business description that focuses on the customer experience or benefit delivered (e.g., “We sell the Starbucks Experience”).

Business Objective

Overall company goal such as profit, sales, or growth used to guide all departments.

Marketing Objective

Specific goals for marketing activities that support higher-level business objectives.

Business Portfolio

The collection of businesses and products that make up a company.

Strategic Business Unit (SBU)

A company division, product line, or brand with its own mission and objectives that can be planned independently.

Portfolio Analysis

Management’s evaluation of SBUs to decide where to invest, grow, or divest resources.

BCG Growth-Share Matrix

Tool that classifies SBUs by market growth rate and relative market share into Stars, Cash Cows, Question Marks, and Dogs.

Star (BCG Matrix)

High-growth, high-share SBU that may require heavy investment but can generate cash.

Cash Cow

Low-growth, high-share SBU that produces strong cash for the company.

Question Mark

High-growth, low-share SBU requiring investment to build share or be phased out.

Dog (BCG Matrix)

Low-growth, low-share SBU that may generate enough cash to maintain itself or be divested.

Product/Market Expansion Grid

Framework for identifying growth strategies: market penetration, market development, product development, diversification.

Market Penetration

Growth strategy that increases sales of current products in current markets.

Market Development

Growth strategy that sells existing products to new markets.

Product Development

Growth strategy that offers new products to current markets.

Diversification

Growth strategy introducing new products to new markets.

Downsizing

Reducing or abandoning products or markets that no longer fit the strategy or are unprofitable.

Value Chain

Internal company departments that carry out value-creating activities; their coordination affects success.

Value Delivery Network

The company plus suppliers, distributors, and customers working together to deliver customer value.

Customer Value-Driven Marketing Strategy

Logic by which a company creates customer value and profitable relationships through segmentation, targeting, differentiation, and positioning.

Marketing Mix (Four Ps)

Tactical tools—Product, Price, Place, Promotion—used to implement the marketing strategy.

Four As

Buyer-centered view of the marketing mix: Acceptability, Affordability, Accessibility, Awareness.

Market Segmentation

Dividing a market into distinct buyer groups with different needs or behaviors.

Market Targeting

Evaluating and selecting one or more segments to enter.

Differentiation

Creating superior customer value by distinguishing the market offering from competitors.

Positioning

Arranging for a product to occupy a clear, desirable place relative to competitors in the minds of target consumers.

SWOT Analysis

Assessment of Strengths, Weaknesses, Opportunities, and Threats used in strategy planning.

Marketing Plan

Written document outlining a company’s marketing situation, objectives, strategy, action programs, budget, and controls.

Executive Summary

Brief overview of the main goals and recommendations in a marketing plan.

Action Programs

Detailed activities showing how strategies will be turned into actions—who, where, when, and how.

Marketing Implementation

Process of turning marketing strategies and plans into actions to achieve objectives.

Marketing Control

Measuring and evaluating results of marketing strategies; includes operating and strategic control.

Operating Control

Checking ongoing performance against annual plans to ensure sales, profits, and other goals are met.

Strategic Control

Determining whether the company’s basic strategies fit its opportunities.

Marketing Return on Investment (ROI)

Net return from a marketing investment divided by the investment’s cost.

Functional Organization (Marketing)

Marketing department structure with specialists (e.g., sales, advertising, product management) reporting to a marketing head.

Geographic Organization

Marketing structure where sales and marketing people are assigned to specific regions.

Product Management Organization

Structure with managers responsible for specific products or brands.

Market or Customer Management Organization

Structure where managers focus on specific customer groups or industries.

Acceptability

Degree to which a product meets or exceeds customer expectations.

Affordability

Extent to which customers in the target market are willing and able to pay the product’s price.

Accessibility

Ease with which customers can acquire the product.

Awareness (Four As)

Extent to which target customers are informed about the product and its benefits.