Sales and Marketing Exam 1, chapter 3

ansoff product-market expansion grid
a matrix developed by cell, plotting new products and existing products with new products and existing products. the grid provides strategic insights into growth opportunities
backward integration
a growth strategy by which companies acquire businesses supplying them with products or services (ex. restaurant buying a bakery)
concentric diversification strategy
a growth strategy whereby a company seeks new products that have technological or marketing synergies with existing product lines
conglomerate diversification strategy
a product growth strategy in which a company seeks new businesses that have no relationship to the company’s current product lines or markets
corporate mission statement
a guide to provide all the publics of a company with a shared sense of purpose, direction and opportunity allowing all to work independently, yet collectively, toward the organization’s goals
forward integration
a growth strategy by which companies acquire businesses that are closer to the ultimate consumer
horizontal diversification strategy
a product growth strategy whereby a company looks for new products that could appeal to current customers, which are technologically unrelated to its current line
horizontal integration
a growth strategy by which companies acquire competitors
macroenvironmental forces
demographic, economic, technological, political, legal, social and cultural factors
market development strategy
finding and developing new markets for current products
market segmentation
the process of dividing a market into distinct groups of buyers who have different needs, characteristics or behavior and who might require separate products/marketing programs
marketing opportunity
an area of need in which a company can perform profitability
marketing strategy
the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships
microenvironmental forces
customers, competitors, distribution channels and suppliers
product development
offering modified or new products to current markets
marketing ROI
the net return from a marketing investment divided by the costs of the marketing investment. it measures the profits generated by investments in marketing activities
strategic alliances
relationships between independent parties that agree to cooperate but still retain separate identities
strategic business units (SBUs)
a single business or collection of related businesses that can be planned separately from the rest of the company
strategic planning
the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
SWOT analysis
evaluates the company’s overall strengths, weaknesses, opportunities and threats