Basic Marketing Chapter 2

Strategic Planning
The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.
Strategic Business Unit (SBU)
A subgroup of a single business or collection of related businesses within the larger organization.
Market Penetration
A marketing strategy that tries to increase market share among existing customers.
Market Development
A marketing strategy that entails attracting new customers to existing products.
Product Development
A marketing strategy that entails the creation of new products for present markets.
Diversification
A strategy of increasing sales by introducing new products into new markets.
Portfolio Matrix
A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.
Star
In the portfolio matrix, a business unit that is a fast growing market leader.
Cash Cow
In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share.
Problem Child (question mark)
In the portfolio matrix, a business unit that shows rapid growth but poor profit margins.
Dog
In the portfolio matrix, a business unit that has low growth potential and small market share.