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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
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