chapter 2 - developing strategies

offerings

goods, services, or ideas that create value for both the organization and its customers by satisfying their needs and wants

business firm

aka for-profit org; privately owned organization that serves its customers to earn a profit so it can survive

nonprofit

a governmental organization that serves its customers but does not have profit as an organizational goal

government agency

a federal, state, county, or city unit that provides a specific service to its constituents

strategy

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

corporate level

where top management directs overall strategy for the entire organization

strategic business unit

a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined target market

functional level

groups of specialists actually create value for the organization; these are often divided into departments

cross-functional teams

a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals

organizaitonal 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

core values

the fundamental, passionate, and enduring principles that guide its conduct over time

mission

a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies

organizational culture

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

business

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

business model

strategies an organization develops to provide value to the customers it serves

goals

aka objectives; statements of an accomplishment of a task to be achieved, often by a specific time

marketing plan

a road map for the marketing actions of an organization for a specified future time period

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

competencies

an organization’s special capabilities that distinguish it from other organizations and provide customer value

business portfolio analysis

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

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

market penetration

strategy to increase sales of current markets

market development

strategy to sell current products to new markets

product development

strategy of selling new products to current markets

diversification

strategy of developing new products and selling them in new markets

strategic marketing process

involves the allocation of an organization’s marketing mix resources to reach its target markets and achieve a competitive advantage

situation analysis

taking stock of where the firm of product has been recently, where it is now, and where it is headed based on internal and external factors

market segmentation

involves aggregating prospective buyers into groups, or segments, that have common needs and will respond similarly to a marketing action

customer value proposition

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

points of difference

those characteristics of a product or service that make it superior to competitive substitutes

marketing strategy

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

marketing tactics

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

planning gap

the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place