Introduction to Marketing-Chapter 2

profit
the money left after a business firm’s total expenses are subtracted from its total revenues and is the risk it undertakes in marketing its offerings
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
CMO
chief marketing officer
strategic business unit (SBU)
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
functional level
where groups of specialists actually create value for the organization
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
core values
the fundamental, passionate, and enduring principles that guide an organization’s 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, broad, underlying industry or market sector of an organization’s offering
business model
the strategies an organization develops to provide value to the customers it serves
goals/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 dashboard
the visual computer display of the essential information related to achieving a marketing objective
marketing metric
a measure of the quantitative value or trend of a marketing activity or result
marketing plan
a road map for the marketing activities of an organization for a specified future time period
competitive advantage
a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation
business portfolio analysis
a technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units 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
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
diversification
a marketing strategy of developing new products and selling them in new markets
strategic marketing process
whereby an organization allocates its marketing mix resources to reach its target market
situation analysis
taking stock of where the firm or product has been recently, where it is now, and where it is headed from there in terms of the organization’s marketing plans and the external forces and trends affecting it
SWOT analysis
strengths, weaknesses, opportunities, threats
market segmentation
the aggregation of prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action
points of difference
characteristics of a product that make it superior to competitive substitutes
marketing strategy
the means by which a marketing goal is to be achieved
marketing tactics
detailed day-to-day operational decisions essential to the overall success of marketing strategies