Marketing 120 – Chapter 2

control phase
The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
customer excellence
Involves a focus on retaining loyal customers and excellent customer service.
diversification strategy
A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
implementation phase
The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP) and (2) implement the marketing mix using the four Ps.
location
market development strategy
A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
market growth rate
The annual rate of growth of the specific market in which the product competes.
market penetration strategy
A growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers.
market positioning
Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
market segment
A group of consumers who respond similarly to a firm’s marketing efforts.
market segmentation
The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.
market share
Percentage of a market accounted for by a specific entity.
marketing plan
A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
marketing strategy
A firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage.
metric
A measuring system that quantifies a trend, dynamic, or characteristic.
mission statement
A broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?
operational excellence
Involves a firm’s focus on efficient operations and excellent supply chain management.
planning phase
The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success.
product development strategy
A growth strategy that offers a new product or service to a firm’s current target market.
product excellence
Involves a focus on achieving highquality products; effective branding and positioning is key.
product line
Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
products
Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
related diversification
A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.
relative market share
A measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.
situation analysis
Second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its
STP
The processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.
strategic business unit (SBU)
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
sustainable competitive advantage
Something the firm can persistently do better than its competitors.
target marketing/targeting
The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
unrelated diversification
A growth strategy whereby a new business lacks any common elements with the present business.