CHAPTER 2: Company and Marketing
Strategy Partnering to Build Customer
Relationships
Strategic Planning: The process of
developing and maintaining a
strategic fit between the
organization’s goals and capabilities
and its changing marketing
opportunities.
Mission statement: A statement of the
organization’s purpose—what it wants to
accomplish in the larger environment
Business portfolio: The collection
of businesses and products that
make up the company
Portfolio analysis: The process by which
management evaluates the products and
businesses that make up the company.
Growth – share matrix: A portfolio-planning
method that evaluates a company’s SBUs in
terms of market growth rate and relative
market share
Product/market expansion grid: A
portfolio-planning tool for identifying
company growth opportunities through
market penetration, market development,
product development, or diversification.
Market penetration: Company
growth by increasing sales of
current products to current
market segments without
changing the product
Market development: Company growth by
identifying and developing new market
segments for current company products
Product Development: Company growth by
offering modified or new products to
current market segments
Diversification
SWOT analysis: An overall evaluation
of the company’s strengths (S),
weaknesses (W), opportunities (O),
and threats (T).
Marketing implementation: Turning marketing
strategies and plans into marketing actions to
accomplish strategic marketing objectives
Return on marketing
investment (or marketing
ROI)
Marketing control
Value chain: The series of
internal departments that
carry out value-creating
activities to design, produce,
market, deliver, and support a
firm’s products.
Value delivery network: 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.
Marketing
strategy
Market
Segmentation
Market Segment
Market target
Positioning
Differentiation
Marketing Mix: 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.