Marketing Test 1

  1. What is an organization?
    Legal entity that consits of people who share a common mission. Can be split between business firms and nonprofits
  2. whats a business firm
    privately owned organization that serves its customers to earn a profit so that it can survuve. (target/nike etc)
  3. What is proft?
    • total revenue minus business firms total expenses.
    • total revenue - total expenses.
    • the reward for the risk it undertakes in marketing its offerings
  4. What is a nonprofit organization?
    non governmental organization that serves its customers but does not have a profit as an organzational goal. its goals instead are may be operation efficiency or client satisfaction.
  5. Strategy
    is an organizations long term course of action designed to deliver a unique customer experience while achieving its goals
  6. structure of todays organizations (3 levels)
    CORPORATE LEVEL: CEO/CMO etc. where top management directs overall strategy for the entire organization.

    Strategic Business Unit Level:  a subsidary division or unit of an organization that markets a set of related offerings to a clearly defined group of customers.

    Functional Level: groups of specialists actually create value for the organization. Marketing/finance section etc. The organizations strategic direction becomes its most speficic and focused.
  7. Visionary Organization
    • Uses key elements to
    • 1) establish a foundation (why does it exist?). includes core values, mission

    2) set a direction using (what will it do?) includes business, goals both LT and ST

    3) strategies that enable it to develop and market its offerings successfuly (how will it do it?) both variation by level and by offering
  8. Core values
    • part of organzational foundation.
    • fundamental, passionate and enduring principles that guide its conduct over time. consistent with their essential beliefs and character.
    • timeless and should not change
  9. business
    • describes the clear, broad, underlying industry or market sector of an organizations offering.
    • so its not we are in the railroad business, rather its the transporation business. its a broader definition. (what do we do, what business are we in?)
  10. market share
    Ratio of sales revenue of the firm to the total sales revenue of all firms in the industry including the firm itself.
  11. marketing dashboard
    glance at essential information related to achieving a marketing objective. Like a car dashboard, can tell a marketing manager whether to take action or to analyze the problem further.
  12. marketing metric
    measure of the quantitative value or trend of a marketing activity or result.
  13. data visualization helps...
    so marketers can 1) spot deviations from plans and 2) take corrective action
  14. competitive advantage
    a unique strength relative to competitiors that provides superior returns often based on quality, time, cost, or innovation
  15. Business portfolio analysis:
    quanitifies performance measures and growth targets to analyze their firms SBUs as though they were a collection of seperate investments. moves counter clockwise
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    • Question marks: low share of high growth markets. need lots of money to maintain market share. is a dilemma: choose the right ones to invest in and throw out the rest
    • Stars: high share of high growth markets that may need extra cash to fuel their own future rapid growth. when growth slows, they prob become cash cows.
    • Cash cows: generate large amounts of cash for more than they can invest profitably in themselves. they have dominant(high) shares of slow growth markets and provide cash to cover the organizations overhead and to invest in other SBUs
    • Dogs: low shares of slow growth markets. they have enough cash to sustain themselved but probs wont ever become winners for the organization (no potential).  dropping dogs usually happens EXCEPT when its better for the company to keep a dog to ensure its competitor does not get its share. (strategic alliance).
Card Set
Marketing Test 1