Marketing

Chapter 2: Strategic Planning for Competitive Advantage

KEY TERMS

01. Cash Cow- In the portfolio matrix, a business unit that usually generates more cash than it needs to maintain its market share.

02. Competitive Advantage-The set of unique features of a company and its products that is perceived by the target market as significant and superior to the competition.

03. Control- Provides the mechanisms for evaluation 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.

04. Cost Competitive Advantage-Being the low-cost competitor in an industry while maintaining satisfactory profit margins.

05. Diversification- A strategy of increasing sales by introducing new products into new markets.

06. Dog- In the portfolio matrix, a business unit that shows rapid growth but poor profit margins.

07. 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.

08. Evaluation- Gauging the extent to which the marketing objectives have been achieved during the specified time period.

09. Experience Curves- The curves represent data on a chart that show costs declining at a predictable rate as experience with a product increases.

10. Four Ps- Product, place, promotion, and price, which together make up the marketing mix.

11. Implementation- 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.

12. Market Development- A marketing strategy that entails attracting new customers to existing customers.

13. 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...