Chapter 2: Strategic Planning and The Marketing Process – Vocabulary Flashcards

Vocabulary flashcards covering key concepts from Chapter 2: Strategic Planning and The Marketing Process.

Strategic Planning

The managerial process of creating and maintaining a fit between the organization’s objectives/resources and evolving market opportunities to achieve long-term goals.

Marketing Plan

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

Corporate Level Strategy

Strategy at the top level that determines the overall scope and direction of the organization.

Business Unit Level Strategy (SBU)

Strategy for strategic business units within a diversified firm; each SBU has its own managers, resources, objectives, and competitors.

Functional Level Strategy (Marketing)

Marketing-focused strategy at the functional level detailing how to implement marketing activities.

Mission Statement

A long-term view of what the organization wants to become; provides a clear direction for strategic planning.

Consumer-Satisfying Process

Viewing business as a process that fulfills customer needs, not merely producing goods.

Goods-Producing Process

A focus on producing goods rather than addressing customer needs (opposite of a marketing approach).

Marketing Myopia

A short-sighted focus on products rather than on fulfilling customer needs and wants.

Market Definition

Defining the business in terms of the market it serves and the needs it satisfies (preferred over a product-based view).

Product-Based Definition

Defining the business by the product it makes, rather than the market needs it serves.

Marketing Objectives

Specific, realistic, measurable, time-specific goals aligned with the organization’s priorities.

Realistic

Achievable given the organization’s resources and market conditions.

Measurable

Objectives that can be quantified or otherwise assessed for progress.

Time-Specific

Objectives with a defined deadline or time frame.

Consistent with Organization’s Priorities

Marketing goals aligned with the overall priorities of the organization.

SWOT Analysis

Evaluation of Strengths, Weaknesses, Opportunities, and Threats facing the organization.

Strengths

Internal factors the company does well or possesses.

Weaknesses

Internal limitations or deficiencies that hinder performance.

Opportunities

External factors the organization could exploit for advantage.

Threats

External factors that could cause trouble or harm the business.

Competitive Advantage

Distinctive features that allow a company and its products to be perceived as superior to the competition.

Sustainable Competitive Advantage

A competitive advantage that can be maintained over time.

Porter’s Five Forces Model

Five forces that shape industry competition: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and rivalry among competitors.

Threat of New Entrants

The possibility that new competitors could enter the market and erode advantages.

Bargaining Power of Buyers

The influence customers have on price and terms.

Bargaining Power of Suppliers

The influence suppliers have over price and supply conditions.

Threat of Substitutes

The risk that alternative products could satisfy the same needs.

Rivalry Among Competitors

Competition among existing firms in the market.

Cost Leadership

A competitive strategy that offers similar value at a lower cost.

Differentiation

A strategy that offers greater value through unique features, not primarily competing on price.

Market Share

A company’s sales expressed as a percentage of total industry sales.

Relative Market Share

Market share of a brand divided by the market leader’s share.

BCG Growth-Share Matrix

Portfolio framework classifying business units as Stars, Cash Cows, Question Marks, or Dogs based on market share and growth.

Stars

High relative market share in a high-growth market.

Cash Cows

High relative market share in a low-growth market.

Question Marks (Problem Children)

Low relative market share in a high-growth market.

Dogs

Low relative market share in a low-growth market.

Market Penetration

Growth strategy by increasing present-market share with present products.

Product Development

Growth strategy with new products in present markets.

Market Development

Growth strategy with present products in new markets.

Diversification

Growth strategy with new products in new markets.

Target Market Strategies

Approaches for selecting and targeting market segments.

Entire Market

Targeting the entire market rather than segments.

Multiple Markets

Targeting more than one market segment.

Single Market

Targeting one specific market segment.

Marketing Mix

The set of controllable marketing tools—Product, Price, Place, Promotion—used to produce desired responses in the target market.

Product

The goods or services offered by the company.

Price

The amount charged for a product or service.

Place

Distribution channels and locations where the product is available.

Promotion

Marketing communication via advertising, personal selling, sales promotion, and public relations.