Marketing Ch. 1

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  1. Distinctive competencies
    Are things that an organization does so well that they give it an advantage over similar organizations. No matter how appealing an opportunity may be, to gain advantage over competitors, the organization must formulate strategy based on distinctive competencies
  2. Diversification
    An organizational strategy that seeks growth through new products (often through acquisition) for customers not currently being served
  3. Market development:
    An organizational strategy that seeks growth through seeking new customers for present products
  4. Market penetration:
    An organizational strategy that seeks growth through increasing the sale of present products to present customers
  5. Marketing
    The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
  6. Marketing Concept
    Means that an organization should seek to make a profit by serving the needs of customer groups. Its purpose is to rivet the attention of marketing managers on serving broad classes of customer needs, rather than on the firms products or on devising methods to attract customers to current products.
  7. Marketing info system
    Throughout the marketing mngt process, current reliable, and valid info is needed to make effective marketing decisions. Providing this info is the task of the marketing info system and marketing research
  8. Marketing Mngt.
    Is the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives.
  9. Marketing Mix
    Is the set of controllable variables that must be managed to satisfy the target market and achieve organizational  objectives. The controllable variables are usually classified according to four major decision areas: PRODUCT, PRICE, PROMOTION, AND PLACE (or channels of distribution)
  10. Marketing planning
    • A process produces three outputs:
    • 1: Establishing marketing objectives
    • 2: Selecting the target market
    • 3: Developing the mix
  11. organizational mission
    • Mission statement, or purpose of an organization is the description of its reason for existence. It is the long run vision of what the company strives to be.
    • An effective mission will focus on markets rather than products, achievable, motivating, and specific.
  12. organizational  objectives
    Are the end points of an organization's mission and are what it seeks through the ongoing, long run operation of the organization. The organizational  mission is distilled into a finer set of specific, measurable, action commitments by which the mission of the organization is to be achieved.
  13. organizational  portfolio plan:
    This stage of strategic plan involves the allocation of resources across the organizations product lines, division, or businesses. It involves deciding which ones to build, maintain, or eliminate, or add.
  14. organizational strategies
    • Are the choice of the major directions of the business will take in pursuing its objectives.
    • 3 major strategic approaches are:
    • 1. Based on products and markets
    • 2. Competitive advantage
    • 3. Value
  15. organizational  strategies based on competitive advantage
    An approach that would develop either a cost leadership strategy which focuses on being the lower cost company in the industry or a differentiation strategy which focuses on being unique in the industry or market segment along dimensions that customer value.
  16. organizational strategies based on Products and Markets
    • An approach that focuses on the four paths an organization can grow:
    • 1. Market penetration
    • 2. Market development
    • 3. Product development
    • 4. Diversification
  17. organizational strategies based on value:
    • This approach to developing organizational strategy seeks to succeed by choosing to deliver superior customer value using one of three value strategies:
    • 1. Best price
    • 2. Best product
    • 3. Best service
  18. Product development
    An organizational strategy that seeks growth through developing new products primarily for present customers
  19. Situation analysis
    • This stage of the marketing planning involves the analysis of the past, present, and likely future in six major areas of concern:
    • 1. cooperative environment
    • 2. competitive "
    • 3. Economic "
    • 4. Social "
    • 5. Political "
    • 6. Legal "
    • Opportunities for and constraints on marketing activities arise from these environments.
  20. Strategic Business Units (SBUs)
    Are product lines and divisions that can be considered a "business" for the purpose of the organizational portfolio plan. It must have a distinct mission, own competitors, be a single business or collection of related businesses, and be planned independently of the other SBUs.
  21. Strategic planning
    Provides a blueprint for mngt actions for the entire organization. It includes all the activities that lead to the development of a clear organizational mission, organizational objectives, and appropriate strategies to achieve the objectives for the entire organization
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Marketing Ch. 1
2017-01-25 16:31:12
Definitions in Marketing Management
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