ALL Roleplay Flashcards
Explain the concept of competition.
Competition is the struggle among businesses for customers within a particular market or industry. As an essential component of the free enterprise system, competition forces businesses to produce quality goods at reasonable prices. Competition also encourages businesses to develop new products, enhance or improve existing products, and expand product selection in order to attract new customers.
Businesses compete in different ways:
Price competition assumes that, with all other considerations being equal, a customer will buy the lowest-priced product.
Nonprice competition is where businesses compete on factors such as product quality, business location and reputation, customer service, and payment or financing options available.
Direct: where businesses offer similar products or services to the same target market.
Indirect: where businesses offer substitute products or services that fulfill similar needs or desires.
A monopoly exists when there is no competition in the market for a particular good or service. Monopolies are not permitted in a free enterprise system.
Successful entrepreneurs strive to establish a sustainable competitive advantage, which is a unique aspect of their business that sets them apart from competitors and provides long-term value to customers. This could be achieved through product innovation, superior customer service, cost leadership, or other strategic initiatives.
Markets are dynamic and constantly evolving. Entrepreneurs who stay vigilant and agile in response to competition are better positioned for long-term success.
Identify factors affecting a business’s profit.
Profit is the monetary return a business’ owner receives for taking the risk of investing in the business. In simple terms, profit equals income less expenses.
There are two types of profit:
Gross profit is the money left over after the cost of goods is subtracted from income from sales.
Net profit is the money left over after operating expenses are subtracted from gross profit.
Factors that affect profit include cost of goods sold, demand for the good/service, expenses, prices, the economy, and innovation. To try to increase profit, a business can increase worker efficiency, increase sales, and/or decrease expenses
Determine factors affecting business risk.
Risks are inherent in every business endeavor, representing the possibility of experiencing adverse outcomes that could lead to financial loss.
Economic risks specifically pertain to those factors that have the potential to result in financial losses.
Pure risks entail situations where there is only the possibility of loss without any opportunity for gain. This includes events like natural disasters, accidents, or unforeseen legal liabilities.
Speculative risks offer the potential for either gain or loss. Investing in the stock market or launching a new product are examples of speculative risks.
Controllability: measures can be implemented to mitigate or reduce their likelihood or impact. For instance, a business can implement safety protocols to minimize the risk of workplace accidents.
Insurability: certain risks can be transferred to an insurance provider through the purchase of insurance policies, such as property insurance or liability insurance. However, not all risks can be insured, particularly those deemed uninsurable due to their unpredictable nature or the inability of insurers to accurately assess and price the risk.
Managing risks
Risk avoidance: involves steering clear of activities or situations that pose significant risks
Risk transfer: involves shifting the financial burden of potential losses to another party, often through insurance contracts
Risk retention: entails accepting the risks and bearing the potential losses internally
Risk mitigation: involves implementing measures to reduce the likelihood or severity of risks
Explain the nature of channels of distribution.
Channels of distribution is a process of delivering products or services from manufacturers or producers to consumers or end-users
Direct: products move directly from the producer to the consumer without intermediaries
Indirect: one or more intermediaries between the producer and the consumer
Intermediaries: middlemen who facilitate the movement of products from producers to consumers.
Wholesalers, distributors, retailers, agents, brokers, etc.
Channel length
Short: fewer intermediaries and are often found in direct distribution models or when products have high demand and require minimal handling
Long: involve multiple intermediaries and are common in industries with complex distribution networks or extensive geographic coverage
Channel functions:
Transactional Functions: Facilitating the buying and selling of products, including negotiation, contracting, and payment processing.
Logistical Functions: Physical distribution activities such as transportation, warehousing, inventory management, and order fulfillment.
Facilitating Functions: Activities that enhance the exchange process, including market research, promotion, branding, advertising, and customer support.
Build corporate brands.
Corporate brands are built through a strategic and deliberate process that involves establishing a strong identity, creating positive associations, and consistently delivering value to stakeholders.
Define brand identity: The first step in building a corporate brand is defining its identity, which includes the company’s mission, vision, values, and unique value proposition (USP)
Develop Brand Messaging: Develop clear and compelling brand messaging that communicates the company’s identity, values, and benefits to its target audience.
Build Brand Awareness: Increase brand awareness through marketing and promotional activities such as advertising, public relations, social media, content marketing, etc.
Provide value and quality
Deliver consistent brand promise
Differentiate from competitors
Generate venture ideas.
Identify Personal Interests and Skills
Explore market trends and opportunities
Solve pain points and address problems
Consider your unique value proposition
Evaluate market potential and competition
Select target market.
Understand Your Product or Service
Start by thoroughly understanding the features, benefits, and unique selling points of your product or service. What problem does it solve? What needs does it fulfill? How does it provide value to customers?
Segment the Market: Divide the broader market into smaller, distinct segments based on relevant criteria such as age, gender, income, location, lifestyle, interests, behavior, or purchasing habits.
Demographic factors
Psychographic factors
Evaluate Segment Attractiveness: Evaluate the attractiveness of each market segment based on criteria such as size, growth potential, profitability, competition, accessibility, and fit with your product or service offering.
Assess Competitive Landscape: Analyze the competitive landscape within each target market segment to understand existing competitors, their strengths, weaknesses, market positioning, and strategies.
Develop a Marketing Plan: Once you’ve selected your target market, develop a comprehensive marketing plan outlining your strategies and tactics for reaching and engaging with your target audience.
Determine services to provide customers.
Understand customer needs
Conduct Competitive Analysis: Analyze the offerings of your competitors to understand the services they provide, their strengths and weaknesses, and how they position themselves in the market.
Assess your capabilities: Evaluate your business’s strengths, expertise, resources, and capabilities to determine which services you can effectively deliver.
Prioritize based on market demand: based on market demand, profitability, and growth potential
Identify value-added services: what value are you adding to your customer’s life? How could we enhance customer experience?
Test and validate to gather feedback and improve
Identify company’s unique selling proposition.
Analyze your target market
Asses competitor offerings
Identify company’s strengths and unique attributes
Focus on customer benefits
Ensure the USP aligns with your brand identity
Be authentic and credible
Communicate consistently
Explain the role of customer service in positioning/image.
First Point of Contact: Customer service often serves as the first point of contact between a company and its customers. The quality of interaction during this initial encounter can significantly impact the customer’s perception of the brand.
“First impression” of the company
Reflects brand values
Builds trust and loyalty
Retention rate
Word-of-mouth recommendations from satisfied customers
Differentiates from competitors
Identify internal and external service standards.
Internal Standards: Understand the expectations set within the company for service quality.
Response time: Establishing guidelines for responding to internal inquiries, requests, or communications within a specified timeframe.
For example, responding to emails within 24 hours or returning phone calls by the end of the business day.
Quality of work: accuracy, attention to detail, adherence to established processes or standards, and meeting predetermined quality metrics or benchmarks
Collaboration and Communication: Defining expectations for effective collaboration, communication, and teamwork within the organization
Training and development
External Standards: Be aware of industry benchmarks and customer expectations.
Consistency: Emphasize the importance of maintaining consistent service quality.
Communication: Ensure all employees are familiar with and adhere to established standards.
“Sell” ideas to others.
Know your audience
Hihglight benefits: explain how it creates value
Provide evidence and data to support your idea - ethos and logos
Tell an engaging story - pathos
Be passionate and build trust
Identify the company’s brand promise.
Understand the company’s values: mission, vision, values, what your company stands for
Analyze Unique Selling Proposition (USP): How does the company differentiate itself in the market?
The company’s market positioning and brand positioning relative to its competitors
Pay attention to customer feedback, reviews, and sentiments about the company. What do customers appreciate most about the company’s products or services?
Evaluate Customer Experience: Assess the end-to-end customer experience journey
Look at employee engagement: How do employees embody and deliver on the brand promise in their interactions with customers?
Define the company’s brand promise
Explain the nature of channels of distribution.
The nature of channels of distribution refers to the structure, functions, and dynamics of the pathways through which goods or services move from producers to consumers.
Structure: Channels of distribution can vary in structure
direct distribution channels: where goods or services move directly from the producer to the consumer
indirect distribution channels: involving intermediaries such as wholesalers, retailers, distributors, or agents
The structure of distribution channels may be influenced by factors such as industry characteristics, market size, product complexity, and customer preferences
Functions:
Transportation
Storage
Sorting and Accumulation
Promotion: Marketing activities to create awareness
Financing: Providing credit or financing options to facilitate transactions
Risk Bearing: Assuming transportation, storage, and inventory management risks.
Information: Gathering, analyzing, and disseminating market information to support decision-making and optimize distribution processes.
Channel Dynamics: Distribution channels are dynamic and subject to constant change due to shifts in market conditions, technological advancements, consumer preferences, competitive pressures, and regulatory changes.
Explain the nature of channel strategies.
Alignment with Business Objectives: Channel strategies are aligned with overarching business objectives, such as market expansion, revenue growth, or cost optimization.
Target Market Considerations: Channel strategies take into account the characteristics and preferences of the target market. Factors such as demographics, geographic location, purchasing behavior, and channel preferences influence the selection of distribution channels and the design of channel strategies.
Channel Relationships: Effective channel strategies prioritize building and maintaining strong relationships with channel partners, including suppliers, intermediaries, and retailers. Collaborative relationships based on trust, communication, and mutual value creation are essential for successful channel management.
Measurement and Evaluation: Channel strategies incorporate metrics and Key Performance Indicators (KPIs) to measure the effectiveness and efficiency of channel performance. Regular evaluation of channel performance helps identify strengths, weaknesses, and areas for improvement, enabling companies to refine their channel strategies accordingly.
Select channels of distribution.
Understand target market
Evaluate channel options
Direct channels: company-owned stores, e-commerce platforms
Indirect channels: wholesalers, retailers, distributors
Hybrid channels
Channel characteristics: Consider factors such as reach, accessibility, cost, control, scalability, and alignment with your business objectives and target market preferences.
Analyze Competitive Landscape: Study competitors’ distribution strategies and channel choices. Identify gaps, opportunities, and potential areas for differentiation or competitive advantage in the marketplace.
Explain the concept of market and market identification.
Market - the interaction between buyers and sellers for the exchange of goods, services, or resources
Market identification - is the process of identifying specific segments within the broader market that represent potential opportunities for a company’s products or services
Market segmentation: Divide the broader market into smaller, homogeneous groups based on shared characteristics
Target market selection: where your product adds the most value or has the most demand
Market analysis: understand what your consumer wants
Marketing mix (product, place, price, promotion) - customize to address the specific requirements of your target market
Continuous monitoring and adaptation: market dynamics, customer feedback, and competitive developments to assess the effectiveness of market identification strategies
Identify the company’s unique selling proposition.
Analyze your target market
Asses competitor offerings
Identify company’s strengths and unique attributes
Focus on customer benefits
Ensure the USP aligns with your brand identity
Be authentic and credible
Communicate consistently
Explain marketing and its importance in a global economy.
Marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
In a global economy, marketing plays a crucial role in several ways:
Market Expansion: Marketing enables businesses to reach beyond their domestic markets and tap into new international markets.
Cultural Sensitivity and Adaptation: Marketing in a global economy requires sensitivity to cultural differences, preferences, and norms.
Successful global marketers tailor their products, messaging, and marketing strategies to resonate with diverse cultural backgrounds and market dynamics.
Competitive Advantage: Effective marketing can provide businesses with a competitive advantage in the global marketplace. By understanding customer needs and preferences better than competitors, companies can differentiate
Brand Building and Reputation Management: Marketing plays a central role in building strong brands and managing reputations on a global scale.
Economic Development: Marketing contributes to economic development by stimulating demand, promoting innovation, creating employment opportunities, and fostering trade and investment across borders.
Describe marketing functions and related activities.
Market Research: Conducting market research to gather information about customer needs.
Product Development: Developing new products or modifying existing ones to meet customer needs and preferences
Pricing Strategy: Establishing pricing strategies based on factors such as production costs, competition, customer demand, and perceived value.
Promotion and Advertising: Creating promotional campaigns and advertising strategies to raise awareness, generate interest, and drive sales.
Brand Management: Building and managing brand identity, image, and reputation to create strong brand equity and customer loyalty.
Digital Marketing and Social Media: Leveraging digital channels and social media platforms to reach and engage target audiences. This includes activities such as website development, search engine optimization (SEO), content marketing, social media marketing, email marketing, and online advertising to drive traffic, leads, and conversions.
Marketing Analytics and Performance Measurement: Analyzing marketing data and metrics to evaluate the effectiveness of marketing efforts and make data-driven decisions. This includes tracking key performance indicators (KPIs), conducting marketing analytics, interpreting results, and optimizing marketing strategies based on insights gained from data analysis.
Explain factors that influence customer/client/business buying behavior.
Psychological factors
Perception
Motivation
Attitudes, beliefs
Social factors
Reference groups: influenced by others
Culture: Cultural values, norms, and customs shape individuals’ preferences, tastes, and buying behaviors.
Social class: socioeconomic status
Personal factors
Demographics: age, gender, education, income, etc.
Lifestyle: interests, hobbies, activities
Personal values: ethics
Economic factors
Environmental factors
Situation and context: urgency, convenience, etc.
