| Question |
Answer |
| Strategic planning |
process of developing and maintaining a strategic fit between organization’s goals and capabilities and its changing marketing opportunities |
| Mission statement |
statement of the organization’s purpose- what its wants to accomplish in the larger environment |
| Business portfolio |
collection of business and products that make up the company |
| Portfolio analysis |
management evaluates the products and businesses making up the company |
| Growth-share Matrix |
portfolio-planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative market share |
| Product/market expansion grid |
useful for identifying company growth opportunities through market penetration, market development, product development or diversification |
| Value chain |
each department carries out value-creating activities to design, produce, market, deliver, and support firm’s products |
| Marketing Strategy |
marketing logic by which the company hopes to achieve its marketing objectives |
| Market segmentation |
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs |
| Target marketing |
evaluating each market segment’s attractiveness and selecting one or more segments to enter |
| Market positioning |
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customers |
| SWOT analysis |
evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T) |
| Marketing implementation |
process that turns marketing plans into marketing actions in order to accomplish strategic marketing objectives |
| Marketing control |
measuring and evaluating the results of marketing strategies and plans and take corrective action to ensure that objectives are achieved |
| Marketing audit |
xamination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities |
| Return on marketing |
net return from a marketing investment divided by the costs of the marketing investment |
| Target marketing |
evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter |
| Target Market |
set of buyers who share common needs or characteristics that the company decides to serve |
| Undifferentiated Marketing |
firm ignored market-segment differences and targets the whole market with one offer. |
| Differentiated Marketing |
firm targets several market segments and designs separate offers for each |
| Concentrated Marketing (niche marketing) |
firm goes after a large share of one or a few smaller segments or niches. Only one or two companies can become successful. |
| Local Marketing |
tailoring brands and promotions to the needs and wants of local customer groups |
| Individual marketing |
tailoring products and marketing programs to the needs and preferences of individual consumers |
| Brand |
name, term, sign, symbol, design that identifies the maker or seller of a product or services |
| Packaging |
designing and producing the container or wrapper for a product |
| Product line |
group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within a given price range |
| Product line strength |
number or items in the product line |
| Product line stretching |
lengthens a product line beyond its current range (ie upward to a higher end, downward to lower end) |
| Product line filling |
adding more items within the present range of the line |
| Product mix |
(product portfolio) consists of all the product lines and items that a particular seller offers for sale |
| Product mix width |
refers to the number of different product lines the company carries |
| Product mix length |
refers to the total number of items the company carrier within its product lines |
| Product line depth |
refers to the number of versions offered of each product in the line |
| Product Mix: Consistency |
how closely related the various product lines are in end use, production requirements, distribution channels, etc. |
| Brand equity |
the positive differential effect that knowing the brand name has on customer response to the product or service |
| Brand valuation |
the process of estimating the total financial value of a brand |
| Low Level Brand Positioning |
Focusing on a brand's physical attributes |
| Strong Brand Positioning |
positioned on strong beliefs and values, engage customers on a deep emotional level |
| Manufacturer’s brand |
(national brand)Nike, Ford |
| Private brands |
store brands, brand created and owned by a reseller of a product or service |
| Cobranding |
practice of using the established brand names of two different companies on the same product |
| Line Extensions |
using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients or package sizes |
| Brand extension |
using a successful brand name to launch a new or modified product in a new category |
| Multibrands |
introduce additional brands in the same category |
| Drawback |
each brand might obtain only a small market share, and none may be very profitable |
| New-product development |
development of original products, product improvements, product modifications and new brands through the firm’s own R&D efforts |
| 90 percent |
of all new consumer products fail within two years |
| Idea generation |
systematic search for new-product ideas |
| Idea Screening |
creening new-product ideas in order to spot good ideas and drop poor ones as soon as possible |
| Product concept |
detailed version of the idea stated in meaningful consumer terms |
| Concept Testing |
testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal |
| Marketing strategy development |
designing an initial marketing strategy for a new product based on the product concept |
| Test Marketing |
product and marketing program are tested in more realistic market settings |
| Product Life Cycle (PLC) |
course of a product’s sales and profits over its lifetime. Involves product development, introduction, growth, maturity and decline |
| Introduction Stage |
when the new product is first distributed and made available for purchase |
| Growth Stage |
product sales start climbing quickly |
| Maturity Stage |
is a period of slowdown in sales growth and profits level off |
| Stages in the Maturity Stage |
Modifying the market, modifying the product, modifying the marketing mix |
| Decline Stage |
the period when sales fall off and profits drop |
| Product class |
(ex. Gasoline powered automobiles) have the longest lifecycles, their sales stay in mature stage for a long time |
| Product form |
(ex. SUV) have a standard shaped PLC |
| Style |
basic and distinctive mode of expression |
| Fashion |
currently accepted or popular style in a given field |
| Fads |
fashion that enters quickly, is adopted with great zeal, peaks early and then declines very quickly |
| Stars |
high growth, high share business or products. They need heavy investment to finance rapid growth |
| Cash Cows |
low-growth, high-share business or products. These are est. and successful SBUs that need less investment to hold their market share. They produce a lot of cash |
| Question Marks |
low-share business units in high-growth markets. They require a lot of cash to hold their share |
| Dogs (Pets) |
low growth, low share business and products. Generate enough cash to maintain themselves but do not promise to be large sources of cash |
| Market Development |
New Markets, Same Products |
| Product Development |
Same Markets, Different Products |
Ch.18 LTI-MA 509
