Principles of Marketing Kotler & Armstrong 14th Edition Chapter 2 – Flashcards
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Strategic planning
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The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
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Mission statement
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A statement of the organization's purpose—what it wants to accomplish in the larger environment.
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Business portfolio
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The collection of businesses and products that make up the company.
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Portfolio analysis
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The process by which management evaluates the products and businesses that make up the company.
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Growth-share matrix
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A portfolio-planning method that evaluates a company's SBUs in terms of its market growth rate and relative market share.
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Product/market expansion grid
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A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
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Market penetration
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A strategy for company growth by increasing sales of current products to current market segments without changing the product.
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Market development
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Company growth by identifying and developing new market segments for current company products.
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Product development
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Company growth by offering modified or new products to current market segments.
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Diversification
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Company growth through starting up or acquiring businesses outside the company's current products and markets.
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Value chain
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The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
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Value delivery network
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The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.
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Marketing strategy
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The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
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Market segmentation
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Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
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Market segment
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A group of consumers who respond in a similar way to a given set of marketing efforts.
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Market targeting
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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Differentiation
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Actually differentiating the market offering to create superior customer value.
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Marketing mix
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The set of tactical marketing tools— product, price, place, and promotion— that the firm blends to produce the response it wants in the target market.
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SWOT analysis
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An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).
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Marketing implementation
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Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
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Marketing control
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Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
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Return on marketing investment (or marketing ROI)
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The net return from a marketing investment divided by the costs of the marketing investment.
