Marketing Chapter 2 Key terms

business

The clear, broad, underlying industry or market sector of an organization’s offering.

business portfolio analysis

A technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.

core values

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

customer value proposition

The cluster of benefits that an organization promises customers to satisfy their needs.

diversification analysis

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

goals (objectives)

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.

market segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

market share

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

marketing dashboard

The visual display of the essential information related to achieving a marketing objective.

marketing metric

A measure of the quantitative value or trend of a marketing action or result.

marketing plan

A road map for the marketing actions of an organization for a specified future time period, such as one year or five years.

marketing strategy

The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

marketing tactics

The detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies.

mission

A statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.

objectives (goals)

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.

organizational culture

The values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization.

organizational purpose

Describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work.

points of difference

Those characteristics of a product that make it superior to competitive substitutes.

profit

The money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.

situation analysis

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.

strategic marketing process

The approach whereby an organization allocates its marketing mix resources to reach its target markets.

strategy

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

SWOT analysis

An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.