Foundations of Marketing Chapter 2

Strategic Marketing Management
the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Strategic Planning
the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategies, and a marketing plan
Mission Statement
a long term view or vision of what an organization wants to become
corporate strategy
determines the means for utilizing resources in various functional areas to reach the organizations goals
Strategic Business Unit
a division, product line, or other profit center within the parent company
market
a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
Market Share
the percentage of a market that actually buys a specific product form a particular company
Market Growth/Market Share Matrix
a helpful business tool, based on the philosophy that a product’s market growth rate and its market share are important considerations in determining its marketing strategy
core competencies
things a company does extremely well, which sometimes give it an advantage over its competition
market opportunity
a combination of circumstance and timing that permits an organization to take action to reach a particular target market
strategic windows
temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
Competitive advantage
the result of a company matching a core competency to opportunities it has discovered in the market place
SWOT analysis
assessment of an organizations strengths, weaknesses, threats, and opportunities
First mover advantage
the ability of an innovative company to achieve long term competitive advantages by being the first to offer a certain product in the market place
Late mover advantage
the ability of later market entrants to achieve long term competitive advantages by not being the first to offer a certain product
marketing objective
a statement to what is to be accomplished through marketing activities
marketing strategy
a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
sustainable competitive advantage
an advantage that the competition cannot copy
marketing implementation
process of putting marketing strategies into action
centralized organization
structure in which top level managers delegate little authority to lower levels
decentralized organization
decision making authority is delegated as far down the chain of command as possible
strategic performance evaluation
establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying that market strategy
performance standard
an expected level of performance against which actual performance can be compared
sales analysis
analysis of sales figures to evaluate a firm’s performance
marketing cost analysis
analysis of costs to determine which are associated wit specific marketing efforts
marketing plan
a written document that specifies the activities to be performed to implement and control the organization’s marketing activities