Chapter 3 Principles of Marketing

business planning
ongoing process of making decisions that guide the firm in both long and short terms.
business plan
plan that includes the decisions that guide the entire organization
marketing plan
document that describes the marketing environment, objectives, and strategy and who will be responsible for carrying out each strategy.
business ethics
rules of conduct for an organization
code of ethics
written standards of behavior in which employees must obey
strategic planning
managerial decision process which matches resources and capabilities to its market opportunities for long term growth and survivial
strategic business unites (SBU)
separate unites within a business. smaller entities which act as seperate businesses but are all part of one. coke, diet coke, and water
functional planning
decision process which focuses on developing plans for the short term, which will in turn support a long term goal
operational planning
decision plan that focuses on developing detailed plans for day-to-day activities for a functional plan
mission statement
formal statement that describes the overall purpose and the intentions for products and resources
situation analysis
assessment of a firms internal and external environments
internal environment
controllable elements of a business such as people and facilities
external environment
uncontrollable elements such as weather and competition
SWOT analysis
strengths, weaknesses, opportunities, and threats.
business portfolio
management tool for evaluating the potential of a businesses porfolio
BCG growth-market share matrix
portfolio analysis developed by the boston consulting group that asses the potential successes of a product based on the market outlook
stars
high market growth, high market share/Coke-growth overseas
cash cows
low market growth, high market share/i-pod
question marks
high market growth, low market share/ mellow yellow
dogs
low market growth, low market share/ coke with lime
market penetration strategies
growth strategies to increase sales of existing products to current, new, and other brand users.
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products to new markets
control
process that entails measuring actual performance, and comparing it to others in the same market. then adjusting strategies and objectives on the basis of the analysis
return on marketing investment (ROMI)
quantifying how an investment in marketing has an impact on the firms success financially and otherwise.
action plans
individual support plans included in a marketing plan that provide guidance for the control of various marketing strategies within the plan.
operational plans
plans that focus on the day to day executions of the marketing plan