Chapter 1 key terms Marketing the process of creating pricing distributing and promoting goods services and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment Target market a specific group of customers on whom an organization focuses its marketing efforts strategic marketing a marketing process used to identify and leverage a business s growth Marketing mix four marketing variables product price distribution and promotion that a firm controls to meet the needs of customers within its target market Marketing environment the competitive economic political legal and regulatory technological and sociocultural forces that surround the customer and affect the marketing mix Value a customer s subjective assessment of benefits relative to costs in determining the worth of a product Customer value customer benefits customer costs Customer benefits anything a buyer receives in an exchange Customer costs anything a buyer must give up to obtain the benefits the product provides Stakeholders constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes Customers the purchasers of organizations products the focal point of all marketing activities Marketing concept a managerial philosophy that an organization should try to satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals Global economy consumes a large portion of buyer s dollars used in nonprofit organizations important to businesses and the economy enhances consumer awareness and connects people through technology Social responsibility a part of strategic planning and the implementation of marketing activities Chapter 2 key terms Strategic marketing management the process of planning implementing and evaluating the performance of marketing activities and strategies both effectively and efficiently Strategic planning the process of establishing an organizational mission and formulating goals Corporate strategy marketing objectives marketing strategy and a marketing plan Mission statement a long term view or vision of what the organization wants to become Corporate strategy a strategy that determines the means for utilizing resources in the various functional areas to reach the organization s goals Strategic business unit SBU a division product line or other profit center within the parent company Business unit strategy strategic planning often begins at the corporate level and proceeds downward to the business unit and marketing levels Should be consistent with the corporate strategy while also serving the unit s needs Market a group of individuals and or organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products Market share the percentage of a market that buys a specific product from a particular company Market growth market share matrix a helpful business tool based on the philosophy that a products market growth rate and its market share are important considerations in determining its marketing strategy o Dominant share of the market o Good prospects for growth o Use more cash than they generate to finance growth add capacity increase market Stars share Cash cows o Dominant share of the market o o Generate more cash than is required to maintain market share Low prospects for growth Dogs o o Question marks Subordinate share of the market Low prospects for growth o o Small share of a growing market Require a large amount of cash to build market share product market matrix one of the most famous marketing tools for evaluating a product s existing and potential markets to identify possible opportunities threats and key strategies It comes from Michael Porter s five forces model often used to assess a company s position within its industry Core competencies things a company does extremely well which sometimes give it an advantage over its competition Market opportunity a combination of circumstances and timing that permits an organization to take action to reach a particular target market Competitive advantage the result of a company matching a core competency to opportunities it has discovered in the marketplace SWOT analysis assessment of an organization s strengths weaknesses opportunities and threats First mover advantage the ability of a company to achieve long term competitive advantages by being the first to offer an innovative product in the marketplace Late mover advantage the ability of later market entrants to achieve long term competitive advantages by not being the first to offer a product in a marketplace Marketing objective a statement of what is to be accomplished through marketing activities Marketing strategy a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market Marketing implementation the process of putting marketing strategies into action Strategic performance evaluation establishing performance standards measuring actual performance comparing actual performance with established standards and modifying the marketing strategy if needed Performance standard an expected level of performance against which actual performance can be compared Sales analysis analysis of sales figures to evaluate a firm s performance Marketing cost analysis analysis of costs to determine which are associated with specific marketing efforts Marketing plan a written document that specified the activities to be performed to implement and control the organization s marketing strategies Chapter 3 key terms Environmental scanning the process of collecting information about forces in the marketing environment Environmental analysis the process of assessing and interpreting information gathered through environmental scanning Competition other firms that market products that are similar to or can be substituted for a firm s products in the same geographical area Brand competitors firms that market products with similar features and benefits to the same customers at similar prices Product competitors firms that compete in the same product class but market products with different features benefits and prices Generic competitors firms that provide very different products that solve the same problem or satisfy the same basic customer need Total budget competitors firms that