Principles of Marketing 8th Edition Chapters 1-2 Terms

Exchange
People giving up something in order to receive something else they would rather have.
Production Orientation
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
Sales Orientation
the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
Marketing Concept
The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.
Market Orientation
A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept
Societal Marketing Orientation
The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests
Customer Value
The relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer Satisfaction
Customers’ evaluation of a good or service in terms of whether it has met their needs and expectations
Relationship Marketing
A strategy that focuses on keeping and improving relationships with current customers.
Empowerment
Delegation of authority to solve customers’ problems quickly – usually by the first person the customer notifies regarding a problem.
Teamwork
Collaborative efforts of people to accomplish common objectives
Customer Relationship Management (CRM)
A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
Strategic Business Unit (SBU)
A subgroup of a single business or collection of related businesses within the larger organization.
Market Penetration
A marketing strategy that tries to increase market share among existing customers.
Market Development
A marketing strategy that entails attracting new customers to existing products
Product Development
A marketing strategy that entails the creation of new products for present markets.
Diversification
A strategy of increasing sales by introducing new products into new markets
Portfolio Matrix
a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
Star
In the portfolio matrix, a business unit that is a fast growing market leader.
Cash Cow
In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
Problem Child (Question Mark)
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
Dog
in the portfolio matrix, a business unit that has low growth potential and a small market share.
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
Market Planning
designing activities relating to marketing objectives and the changing marketing environment
Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
Mission Statement
A statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
Marketing Myopia
Defining a business in terms of goods and services rather than in terms of the benefits customers seek
SWOT analysis
A planning exercise in which managers identify organizational strengths (S) and weaknesses (W) and environmental opportunities (O) and threats (T).
Environmental Scanning
Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
Competitive Advantage
the set of unique features of a company and its products that are preceived by the target market as significant and superior to the competition.
Cost Competitive Advantage
Being the low-cost competitor in an industry while maintaining satisfactory profit margins
Experience Curves
curves that show costs declining at a predictable rate as experience with a product increases
Product/Service Differentiation Competitive Advantage
the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitions
Niche Competitive Advantage
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Sustainable Competitive Advantage
An advantage that cannot be copied by the competition
Marketing Objective
A statement of what is to be accomplished through marketing activities
Marketing Strategy
The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets.
Market Opportunity Analysis (MOA)
the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
Marketing Mix (Four P’s)
A unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
Implementation
Is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan’s objectives.
Evaluation
Gauging the extent to which the market objectives have been achieved during the specified time period.
Control
Provides the mechanisms for evaluating the marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.
Marketing Audit
A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
Name the four competing Philosophies.
Production Orientation, Sales Orientation, Market Orientation, Societal Orientation
Name the five Characteristics of SBU’s.
Distinct Mission with Specified Target, Control of resources, Own competitors, Single or collection of related businesses, Plans are independent of other businesses
Name the four sectors of Ansoff’s Strategic Opportunity Matrix.
Market Penetration, Market Development, Product Development, Diversification
Name the three ranges of the Innovation Matrix.
Core Innovation, Adjacent Innovation, Transformational Innovation
Name the four categories of a Portfolio Matrix.
Stars, Cash Cows, Problem Child, Dogs
Name The four Basic strategies to allocate future resources.
Build, Hold, Harvest, Divest
Name the three types of competitive advantages.
Cost, Product/Service, Niche
Name the four requirements for market objectives.
Realistic, Measurable, Time Specific, Compared to a Benchmark
Name the four components of the Marketing Mix.
Product Strategies, Place Strategies, Promotion Strategies, Pricing Strategies