Title: 2 Key Terms
Course: Principles of Marketing > Section: Chapter 2

Key Terms

BCG matrix

Boston Consulting Group’s framework for analyzing an organization’s strategic business units

business portfolio

the group of products, services, and business units that a company possesses

business-level strategy

outline of the actions and decisions a company plans to take to reach its goals and objectives

buyer persona

a semi-fictional representation of your ideal customers based on data and research

concentric diversification

the addition of similar products or services to an existing business

conglomerate diversification

the development and addition of new products or services that are significantly unrelated to a company’s current offerings

corporate social responsibility (CSR)

the concept that a company should integrate social and environmental concerns into its business operations and practices

corporate-level strategy

strategy that establishes the overall value of a business through setting strategic goals and motivating employees to achieve them

customer acquisition cost

the amount an organization invests in attracting a new customer

customer lifetime value (CLV)

an estimate of how much a single customer is worth to a company over their customer life span

executive summary

a brief overview of a marketing plan

functional strategy

actions and goals assigned to business units that support the overall business strategy

gap analysis

an internal analysis of a company or organization to identify and review its inherent deficiencies that may hinder its ability to meet its goals

goals

the outcomes one intends to achieve

horizontal diversification

the development of new and perhaps even unrelated products or services to market to existing customers so that a company can garner a larger customer base

key performance indicators (KPIs)

quantifiable measure gauging a company’s performance against a set of targets, objectives, or competitors

market development strategy

a growth strategy that identifies and develops new market segments for current products

market penetration strategy

a strategy used when a company focuses on growing its market share in its existing markets

marketing dashboard

summarizes important marketing metrics and key performance indicators into easy-to-understand measurements

marketing ethics

area of applied ethics dealing with the moral principles behind the operation and regulation of marketing

marketing metrics

what marketers use to monitor, record, and measure progress over time; are varied and can change from platform to platform

mission statement

action-based statement declaring the purpose of an organization

objectives

specific targets to be achieved within a specified period of time

product development strategy

complete process of delivering a new product or improving an existing one for customers

product diversification strategy

strategy to increase profitability and achieve higher sales volume through new products

product positioning

strategic exercise that defines where a product or service fits in the marketplace

strategic business unit

a relatively autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities

strategy

set of plans, actions, and goals that outlines how a business will compete

SWOT analysis

identification of internal strengths and weaknesses and external opportunities and threats impacting a business

vision statement

aspirational statement that articulates what an organization aims to achieve