Marketing Chapter 2 Vocab

SWOT Analysis
Strengths, weaknesses, opportunities, threats
Environmental Scan
An analysis of outside influences that may have an impact on an organization.
Marketing Plan
A formal, written document that directs a company’s activities for a specific period of time.
It details analysis and research efforts and provides a roadmap for how a product will enter the market, be advertised, and sold.
Executive Summary
A brief overview of the entire marketing plan.
Situation Analysis
The study of the internal and external factors that affect marketing strategies.
Marketing Strategy
Identifies target markets and sets marketing mix choices that focus on those markets.
Sales Forecasts
The projection of probable, future sales in units or dollars.
Performance Standard
An expectation for performance that reflects the plan’s objectives.
Marketing Segmentation
The process of classifying people who form a given market into even smaller groups.
Demographics
Refers to statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, education, and occupation.
Disposable Income
The money left after taking out taxes.
Marketers who produce and distribute products that are necessities are interested in changes in consumers’ disposable income.
discretionary Income
The money left after paying for basic living necessities such as food, shelter, and clothing.
Marketers who sell luxury and premium products are interested in changes in consumers’ discretionary income.
Geographies
Refers to segmentation of the market based on where people live.
Psychographics
Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.
80/20 Rule
80% of a company’s sales are generated by 20% of its loyal customers.
Mass Marketing
Involves using a single marketing strategy to reach all customers.
Niche Marketing
Markets are narrowed down and defined with extreme precision.