Marketing Chapter 2

legal entity of people who share a common mission, which motivates it to develop offerings(goods, services, or ideas) that create value
organizations that develop similar offerings, when grouped together
Business firm
privately owned organization that serves its customers in order to earn a profit so that i can survive
the money left after a business firm's total expenses are subtracted from its total revenues or sales and is the reward for the risk it undertakes in marketing its offerings
Nonprofit organizations
a nongovernmental organization that serves its customers but does not have profit as an organizational goal.
organization's long-term course of action designed to deliver a unique customer experience while achieving its goals
philosophical reason for being--why it exists
Core Values
fundamental passionate and enduring principles that guide an organization over time
Mission Statement
a statement of the organization's function in society, often identifying its customers, markets products and technologies. Should be clear, concise, meaningful, inspiration and longterm
Organizational culture
set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization.
the underlying industry or marketing sector of an organization's offering
Goals (objectives)
targets of performance to be achieved, often by a specific time
Market Share
ratio of a firm's sales to the total sales of all firms in the industry
Marketing Dashboard
the visual display of essential marketing information
Marketing Metric
a measure of the value or trend of a marketing activity or result
Marketing Plan
a road map for the marketing activities of an organization for a specified future time period
Strategic Business Unit
Market Growth Rate
the annual rate of growth of the SBU's industry
Relative market share
sales of the SBU divided by he sales of the largest firm in the industry
Cash Cows
SBUs that generate large amounts of cash, far more than they can invest profitably in themselves
SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth
Question marks
SBUs with a low share of high-growth markets
SBUs with low shares of slow-growth markets
Diversification Analysis
a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
Market penetration
a marketing strategy to increase sales of current products in existing markets
Market Development
a marketing strategy to sell existing products to new markets
Product Development
a marketing strategy of selling new products to existing markets
a marketing strategy of developing new products and selling them in new markets
Strategic Marketing process
approach whereby an organization allocates its marketing mix resources to reach its target markets
Situation (SWOT) Analysis
taking stock of where a firm or product has been recently, where it is now, and where it is headed
SWOT Analysis
appraisal of an organization's internal Strengths and Weaknesses and it's external Opportunities and Threats.
Market Segmentation
sorting potential buyers into groups that have common needs and will respond similarly to a marketing action
Points of Difference
those characteristics of a product that make it superior to competitive substitutes
Marketing Strategy
the means by which a marketing goal is to be achieved, usually characterize by a specified target market and a marketing program to reach it
Marketing Tactics
detailed day-to-day operational decisions essential to the overall success of marketing strategies