Marketing the Core Chapter 2 (Kerin and Hartley 7th Edition)

Organization

a legal entity that consists of people who share a common mission

Offerings

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

Business firm

a privately owned organization that serves its customers to earn a profit so that it can survive

Profit

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

Strategy

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

The board of director oversees the three levels of strategy in organizations:

corporate, strategic business unit, and functional

Core Values

the fundamental, passionate, and enduring principles of an organization 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 set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

Business

the clear, brand, underlying industry or market sector of an organization's offering

Goals

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

Objectives

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

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 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 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

Business portfolio analysis

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

Boston Consulting Group (BCG )

Big business protfolio analysis requires an organization to locate the position of its SBU on a growth share matrix as either a question mark, star, cash cow, or dog

Question marks

are SBUs with a low market duster of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it

Stars

are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth stops they are likely to become cash cows

Cash cows

are SBUs that generate large amounts of cash, far more than they can use. They have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBUs

Dogs

are SBUs with low shares of slow-growth markets. Although, they generate enough cash to sustain themselves, they may no longer be or may not become real winners for the organization

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

Strategic Marketing Process

the approach whereby an organization allocates its marketing mix resources t reach its target markets

Situational 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 organizations' marketing plans and the external forces and trends affecting it

SWOT analysis

an acronym describing an organizations' appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats

Market Segmentation

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

Points of Difference

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

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 each 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

Nonprofit organization

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

Government agencies

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

Industry

organizations that develop similar offerings

Corporate level (of organization)

top management directs overall strategy of the entire organization meaning the board of directors and senior management officers

Strategic Business Unit (SBU)

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 where the organization's strategic direction becomes its most specific and focused

Stakeholders

employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers

Business model

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

Core competencies

special capabilities - the skills, technologies, and resources - that distinguish it from other organizations and provide consumer value

Competitive advantage

a unique strength relative to competitors that provides superior returns, often based on quality, time, cost or innovation

Market penetration

a marketing strategy to increase sales of current products in current markets

Market development

a marketing strategy to sell current products to new markets

Product development

a marketing strategy of selling new products to current markets

Gantt chart

a graph of a program schedule used to schedule a project