Glossary
Chapter 21: Marketing StrategyJump to a chapter's terms: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24
- ABC sales: contribution analysis
- An approach that examines the financial worth to a company of its products, product groups or customers. p. 678
- Basis for competing
- A business's combined strengths as identified in a SWOT analysis and any differential advantage, which should form the leading edge of the business's marketing strategy. p. 670
- Capabilities
- A company's distinctive competencies to do something well and efficiently. p. 663
- Cash cows
- Products with a dominant share of the market but low prospects for growth. p. 672
- Competitive positions
- Roles in the competitive marketplace that organisations assume, which influence their marketing strategies and tactics. p. 667
- Competitor scanning
- The monitoring of competitive positions and competitors' strategies. p. 669
- Concentric diversification
- A process that occurs when new products related to current products are introduced into new markets. p. 664
- Conglomerate diversification
- A process that occurs when new products unrelated to current technology, products or markets are introduced into new markets. p. 664
- Corporate strategy
- A strategy that determines how resources are to be used to meet the organisation's goals in the areas of production, finance, research and development, personnel and marketing. p. 660
- Defensive warfare
- A policy of striking a balance between waiting for market developments or competitor activity and proactively parrying competitors' actions. p. 668
- Differential advantage
- An attribute of a brand, product, service or marketing mix which is desired by the targeted customer and provided by only one supplier. p. 669
- Diversified growth
- Growth that occurs when new products are developed to be sold in new markets. p. 664
- Dogs
- Products that have a subordinate share of the market and low prospects for growth. p. 672
- Environmental scanning
- The process of collecting information about the marketing environment to help marketers identify opportunities and assist in planning. p. 663
- Fast movers
- Smaller rival companies not yet destined to be major challengers, but growing rapidly on a smaller scale. p. 668
- Horizontal diversification
- A process that occurs when new products not technologically related to current products are introduced into current markets. p. 664
- Integrated growth
- Growth that occurs in three possible directions: forwards, backwards or horizontally. p. 664
- Intense growth
- Growth that occurs when current products and current markets have the potential for increasing sales. p. 664
- Market attractiveness-business position model
- A two dimensional matrix that helps determine which SBUs have an opportunity to grow and which should be divested. p. 673
- Market challengers
- Non-market leaders that aggressively try to capture market share from their rivals. p. 668
- Market development
- A strategy of increasing sales of current products in new markets. p. 664
- Market followers
- Low share competitors without the resources, market position, research and development, or commitment to challenge for extra sales and market share. p. 668
- Market leader
- The single player enjoying the largest individual share in the market. p. 667
- Market nichers
- Companies that specialise by focusing on only a very narrow range of products or on a select band of consumers. p. 668
- Market penetration
- A strategy of increasing sales of current products in current markets. p. 664
- Market requirements
- Requirements that relate to customers' needs or desired benefits. p. 662
- Marketing assets
- Capabilities that managers and the marketplace view as beneficially strong. p. 663
- Marketing opportunity
- Circumstances and timing that allow an organisation to take action towards reaching a target market. p. 662
- Marketing plan
- The written document that includes the framework and set of activities for implementing and controlling an organisation's marketing activities. p. 656
- Marketing programme
- The set of marketing strategies that are implemented and used at the same time. p. 656
- Marketing strategy
- A strategy indicating the specific target markets and the types of competitive advantages that are to be developed and exploited. p. 656
- Mission
- The broad, long term tasks that the organisation wants to accomplish. p. 659
- Offensive warfare
- A policy whereby challengers aggressively seek market share by identifying any weakness in the leader's marketing mix and developing a genuine corresponding strength. p. 669
- Problem children
- Products that have a small share of a growing market, generally requiring a large amount of cash to build share. p. 672
- Product development
- A strategy of increasing sales by improving present products or developing new products for current markets. p. 664
- Product portfolio analysis
- A strategic planning tool that takes a product's market growth rate and its relative market share into consideration in determining a marketing strategy. p. 672
- Profit Impact on Marketing Strategy (PIMS)
- A research programme that compiled a databank of information on 3,000 strategic business units of 200 different businesses in order to assist in analysing marketing performance and formulating marketing strategies. p. 675
- Stars
- Products with a dominant share of the market and good prospects for growth. p. 672
- Strategic business unit (SBU)
- A division, product line or other profit centre within a parent company. p. 656
- Strategic market plan
- An outline of the methods and resources required to achieve an organisation's goals within a specific target market. p. 656
- Strategic market planning
- A process that yields a marketing strategy that is the framework for a marketing plan. p. 656
- Strategic window
- A temporary period of optimum fit between the key requirements of a market and the particular capabilities of a company competing in that market. p. 662