Sales and Marketing Exam 1, chapter 3 – Flashcards
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ansoff product-market expansion grid
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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
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backward integration
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a growth strategy by which companies acquire businesses supplying them with products or services (ex. restaurant buying a bakery)
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concentric diversification strategy
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a growth strategy whereby a company seeks new products that have technological or marketing synergies with existing product lines
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conglomerate diversification strategy
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a product growth strategy in which a company seeks new businesses that have no relationship to the company's current product lines or markets
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corporate mission statement
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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
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forward integration
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a growth strategy by which companies acquire businesses that are closer to the ultimate consumer
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horizontal diversification strategy
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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
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horizontal integration
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a growth strategy by which companies acquire competitors
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macroenvironmental forces
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demographic, economic, technological, political, legal, social and cultural factors
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market development strategy
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finding and developing new markets for current products
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market segmentation
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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
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marketing opportunity
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an area of need in which a company can perform profitability
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marketing strategy
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the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships
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microenvironmental forces
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customers, competitors, distribution channels and suppliers
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product development
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offering modified or new products to current markets
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marketing ROI
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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
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strategic alliances
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relationships between independent parties that agree to cooperate but still retain separate identities
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strategic business units (SBUs)
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a single business or collection of related businesses that can be planned separately from the rest of the company
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strategic planning
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the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
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SWOT analysis
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evaluates the company's overall strengths, weaknesses, opportunities and threats
