Principles of Marketing, Lamb, Chapter 2

Strategic planning
The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities
Strategic business unit
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 value among existing customers
Market development
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
Core innovation
Decisions which implement changes that use existing assets to provide added convenience to existing customers and entice new ones
Adjacent innovation
Decisions that are designed to take company strengths into new markets
Transformational innovation
Decisions that result in brand-new markets, products, and often new business
Innovation matrix
Core innovation
Adjacent innovation
Transformational innovation
Portfolio matrix
Tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
Star
In portfolio matrix- business unit at is a fast growing market leader
Cash cow
In portfolio matrix- business unit that generates more cash than it needs to maintain its market share
Problem child
In portfolio matrix- business unit that shows rapid growth but poor profit margins
Question mark
Another word for problem child
Dog
In portfolio matrix- business unit that has low growth potential and small market share
Portfolio matrix
Four categories of ——— ——
Star
Cash cows
Problem children
Dogs
Build
If an SBU has potential to be star
Hold
If an SBU is successful cash cow
Harvest
If SBU is anything other than a star
Divest
When SBU is a problem child or dogs
GE model
Market attractiveness vs. business position
Planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future
Marketing planning
Designing activities relating to marketing objectives and the changing marketing environment
Marketing plan
Written document that acts as a guidebook of marketing activities for the marketing manager
Mission statement
Statement of the firms 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
Identifying internal Strengths, Weaknesses and examining Opportunities and Threats
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 implementation of the marketing plan
Competitive advantage
A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of 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
Costs
Ways to reduce —–
Experience curves
Efficient labor
No-frills goods and services
Government subsidies
Product design
Reenginering
Production innovations
New methods of service delivery
Product/service differentiation competitive advantage
The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
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
Realistic
A marketing objective should be:
———
Measurable
Time specific
Compared to a benchmark
Measurable
A marketing objective should be:
Realistic
———-
Time specific
Compared to a benchmark
Time specific
A marketing objective should be:
Realistic
Measurable
—- ——–
Compared to a benchmark
Compared to a benchmark
A marketing objective should be:
Realistic
Measurable
Time specific
——– — – ———
Market opportunity analysis
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
A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
Implementation
Process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
Evaluation
Gauging the extent to which the marketing objectives have been achieved during the specified time period
Control
Provides the mechanism for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organizations reach those objectives within budget guidelines
Marketing audit
A thorough, systematic, periodic evaluation of the objectives strategies, structure, and performance of the marketing organization