BDSMM Flashcards
Different types of costumer needs?
Physical – Food, sleep, housing
Social – Group affiliation
Psychological – The individual and self-fulfillment
What is a macroenviornment?
The major external and uncontrollable factors that influence an organization’s decision making, and affect its performance and strategies.
What are the different aspects of a PESTLE analysis?
Political, Economic, Social and cutural, Technological, Legal, envoirnmental
What is a Microenvironment?
Factors or elements in an organization’s immediate area of operations that affect
its performance and decision-making freedom
What different analyses are done for a microanalysis?
Market analysis – To understand market size, growth rates and trends
Industry analysis – To evaluate and learn to understand the “rules” and
structure of the industry where you are active
Competitor analysis – To evaluate and learn to understand competitors’
strengths, weaknesses and reaction patterns
Customer
What is a market analysis?
Size
o Current
o Potential
Growth
Profit potential – See industry analysis
Cost structures in the industry – What is the distribution of costs for the
main cost drivers
Distribution structures –” From the mine to the customer”
Trends and development
Key/Critical Success Factors (KSFs)
What does diffusion of innovation mean?
Innovators – Ca 2,5% of those customers who will accept an innovation in
the end
Early adopters – Ca 13,5%
Early majority – Ca 34% * Late majority – Ca 13,5%
Laggards – Ca 16%
What is Porters Five forces?
It is in Industry analysis.
- Threat of new endtrants
- Bargening power of suppliers
- Bargening power of customers
- Threat of substitute product, products, services.
- THE INDUSTRY, Degree of riverly
What are the five key questions of a competitor analysis?
- Who are our competitors?
- What are their strengths and weaknesses?
- What are their strategic objectives and thrust?
- What are their strategies?
- What are their response patterns?
o result in changed key success factors
What is a competitor Audit?
Identify key/critical success factors in the industry
Rate competitors (and our own company) on each key success factor
What is in a SWOT? Explain as much as you can
Strengths (Internal – Controllable) Strengths describe the positive attributes, tangible and intangible, internal to your organization. They are within your control.
Weaknesses (Internal – Controllable) Weaknesses are aspects of your business that detract from the value you offer or place you at a competitive disadvantage. You need to enhance these areas in order to compete with your best competitor.
Opportunities (External – Uncontrollable) Opportunities are external attractive factors that represent reasons your business is likely to prosper.
Threats (External – Uncontrollable) Threats include external factors
beyond your control that could place your strategy, or the business itself,
at risk. You have no control over these, but you may benefit by having contingency plans to address them if they should occur.
WHat do we do to identify a customer need?
- Market research
- Surveys
- Interviews
- Focus groups
- Observations
- Business Intelligence
Who are the different parts of a market?
- Seller – Offers/Supply
- Buyers – Demand
- Meeting
Physical or virtual - Regulations/Norms
How does it work?
Laws
Stand in line - Other stakeholders
Greenpeace, Amnesty, neighbours
What does B2B and B2C mean?
B2B = Business to business
B2C = Business to customer
What is the five key questions for customer behaviour?
- How do they buy?
- Where do they buy?
- Who is important?
- What are their choice criteria?
- When do they buy?
Who buys? Who is important?
- Initiator – Begins by considering to solve a problem
- Influencer – Persuader
- Decider – Power and/or financial authority
- Buyer – Effectuates the purchase
- User – Consuming/using the product
How the customer buy?
- Need recognition
- Search for information
- Evaluation of alternatives
- Purchase Decision
- Post- Purchase Evaluation
Give some examples of a customer’s choice criteria?
Technical, economic, personal, social,
Give some examples of where a customer buys?
Physical store, mall, internet…
Give some examples of when a customer buys?
- When to buy depends on buying situation: we differ between extended problem-solving
(extended search), limited problem-solving (usual sources) and habitual problem-solving
(no/limited search)
Give examples of perceived cost?
Percived sacrifice/total cost associated with the purchase:
- Monetary costs
- Time costs
- Energy costs
- Psychological costs, risk
What are the key characteristics to B2B?
- Few actors (suppliers and customers) usually leads to long term relationships and
strong networks - Each market is unique – Detailed understanding is important
- Complexity of buying is often high. Buying decisions are made primarily on
economic and technical criteria. - E-commerce is common. Value-added networks and virtual marketplaces are
beneficial (incl higher reachability, lower procurement costs, better connectivity to
suppliers and buyers) - Risks and uncertainty affects the buying decision
- Often very specific requirements apply
- Derived demands
- Prices are negotiated
- In B2B, Organisations are buying – and selling. Not individuals.
- Configuration of buying organisation (Decision making unit, DMU) might change depending
on decision-making process.
Influences of buying decisions? The buy classes
- New task – When the need has not occured previously
- Straight rebuy – Buys previously purchased items from ”old” suppliers
- Modified rebuy – Buys previously purchased items from ”new” suppliers
What is a marketing Information system?
A system in which marketing information is formally gathered,
stored, analyzed, and distributed to managers in accord with their informational
needs on a regular basis
give some examples of what can be in a market information system.
- Internal continuous data
Financial data
Profitability (product, customer, distribution channel)
Customer behaviour
Internal ad-hoc data - Data for a specific/ad-hoc purpose
Changes due to promotion activities
Introduction of new products - Environmental scanning
Data related to macroenvironment
Monitor changes in macroenvironment
Long-term perspective - Marketing research
Data related to markets and market offers
Shorter-term perspective
External continuous data sources (via e-commerce/apps), or ad-hoc data
What does ad- hoc research mean?
Ad-hoc research (one-time studies)
* Custom-designed studies
* Omnibus studies – Part of bigger/multi-client studies
What are the differnet competitor response patterns?
- Retaliatory
Responds aggressively to competitive challenges - Slow reactions due to complacency
- Hemmed-in
Difficulties to respond due to strategies, laws etc - Selectively
Aggressive in certain areas (e.g. price) but not in others (e.g. innovations) - Unpredictable
No particular pattern
What is in a market analysis?
- Size- Current, Potential
- Market growth
- Market profitability – See Industry Analysis (Porter’s Five Forces)
- Cost structures in the industry – What does the distribution of costs look like for the main
cost drivers? - Distribution systems – ”From the mine to the customer”
- Trends and developments
- Key Success Factors
What is in a company analysis?
- Operating results
Sales
Market share
Profit margins
Costs - Strategic issues analysis
Marketing objectives
Market segmentation
Competitive advantage - Core competences
Positioning
Portfolio analysis
Performance measurement - Marketing mix effectiveness
Product
Price
Promotion
Distribution/Place - Marketing structures
Marketing organisation
Marketing training
Intra-and interdepartmental communication - Marketing systems
Marketing information systems
Marketing planning system
Marketing control system
What are the different strategic thrusts?
- Market penetration/expansion – When you try to increase the market share, using existing
products on existing markets - Market development - When you try to introduce existing products on new/related markets
- Product development - When you try to introduce new/related products on existing markets
- Diversification/Enter new markets - When you try to introduce new/related products on
new/related markets
What are the competitive strategies?
- Differentiation
- Cost leadership
- Differentiation focus
- Cost focus
What are sources of competitor advantage?
- Superior skills
Distinctive capabilities that set key personnel apart from the personnel of competing companies
”We can perform functions more effectively than other companies” - Superior resources
Distribution infrastructure
R&D spendings
Scale and type of production facilities
Financial resoures
Brand equity
Knowledge - Core competences
A company’s distinctive skills and resources
What are the five competitor behaviours?
- Conflict – Aggressive competition to drive competitors out of the market
- Competition – Perform better than competitors
- Co-existence – Unawareness / Separation in market segments / Acknowledge territories
- Cooperation – Alliances
- Collusion – Agreements to inhibit competition
What characteristics a attack strategy?
Frontal attack – Take on the
defender head-on
* Flanking – Attacking unguarded
positions
* Encirclement - Attacking the
defender from all sides
* Bypass – By tech leap-frogging
* Guerilla – Unpredictable smaller
attacks
What are some different defencive stratageies?
Position – Protecting ”our” position/territory
* Flanking – Defending undefended positions
* Mobile - Alternative markets/products
* Counter-offensive – Attack the attacker
* Preemptive – Be the first mover
* Strategic withdrawal – Exiting the market
(before it’s too late)
Who are part of the stakeholder theory?
The company are connected to
- Shareholders
- Communities
- Employees
- Customers
- Suppliers
Explain the pyramid of social responsability.
top: Philantropic
Second top: Ethical
Third top: Legal
Base: Economic
Dimensions of Corporate social responsibility (CSR)?
- Physical environment
*Global warming/Pollution/Green components - Sustainable marketing - Social (community involvement)
Societal marketing
Cause-related marketing - Consumer
Societal marketing - Supply chain
Fair trade marketing - Employee relations
Internal marketing
What are the different parts of the Business Model Canvas?
- Key partners
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform? - Key activities
What Key Activities do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue streams? - Key resources
What Key Resources do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams? - Cost structure
What are the most important costs inherent in our business model?
Which Key Resources are most expensive? Which Key Activities are most expensive? - Value Propositions
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying? - Customer relationship
What type of relationship does each of our Customer Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they? - Channels
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines? - Revenue streams
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues? - Customer segments
For whom are we creating value?
Who are our most important customers?
Why segmentation?
- Target markets
- Tailor a marketing mix based upon similarities
- Differentiate offerings between segments
- Understand segments opportunities and threats
What are the different parts of segmentation of consumer markets (B2C)
- Behavioral
Benefits sought
Purchase occation
Purchase behaivoiur
Usage
Perceptions and belifs - Psychographic
Lifestyle
Personality - Profile
Demographic
Socio-economic
Geographic
Explain segment
The characteristics within a segment should be the same, but differ from other segments
What are the Requirements for effective
segmentations?
- Substantiality – The market segment is sufficiently large or profitable, to justify a special
marketing mix / market offer - Measurability – Size, purchasing power and profits of a market can be measured
- Accessibility –The market segment can be reached and served
- Actionability – Effective programs / offers can be designed for attracting and serving a segment
What are the Target marketing strategies?
- Undifferentiated marketing – One offer to serve everyone
- Differentiated marketing – Different offers for different segments
- Customized marketing – Different offers for different customers
Explain positioning?
- The objective is to create and maintain a distinctive position in the market for a company
and its products - Positioning is the choice of:
- Target market – Where we want to compete
- Differential advantage – How we wish to compete
- Positioning includes
- Customers, and
- Competitors
What is a perceptual map?
- Identify a set of competing brands
- Identify important attributes that customers use when choosing between
brands - Conduct quantitative marketing research where customers score each brand
on key attributes - Plot perceptual maps
What are the four C’s?
- Clarity – Positioning idea must be clear in terms of target market and
differential advantage - Consistency – Stay consistent in messages to the market
- Credibility – The differential advantage chosen must be credible in the minds
of the target customer - Competitiveness – The differential advantage should have a competitive
edge. Provide something sought for, but not delivered yet.
What are the 7 P’s?
Product
Price
Place
Promotion
People
Process
Physical evidence
What are the different parts of product?
- Core product
The product itself - Actual product
Features
Quality
Styling
Package - Augmented product
Installation
Delivery
Guarantee
Brand
Service
Explain product mix and product line
- Product line – A group of brands that are closely related in terms of functions, and the benefits they
provide. Example: Apple’s iPhones consists of Iphone SE, iPhone 14 + additional brands - Depth – Number of product variants. Example: # variants of iPhones. The depth of a product line
depends upon the pattern of customer requirements, competitors’ product lines, and company
resources - Product mix – The total set of brands marketed in a company. Ex Apple’s Mac, iPads, iPhone, Watch,
TV - Management of brands and product lines is strongly related to product strategy
What are the different strategic objectives?
- Build – Build sales and/or market share – Stars and certain Problem childen
- Hold – Hold sales and market share – Cash cows
- Harvest – When market shares and sales fall, profit margins maximised – Certain
Problem children and Dogs - Divest – When products and sales drop – Some Problem children and Dogs
Explain the ansoff matrix
Market penetration: Existing products, Existing markets, Low risk
Product development: New Products, Existing markets, Moderate risk
Market development: Existing products, New markets, Moderate risk
Diversification: New products, New markets, high risk
What are the different price methods?
- Cost-oriented (B2B) * What does it cost to produce and sell?
- Full-cost or Direct-cost
- Minimum price
- Competitor-oriented (based on competitors) * Price set due to the influential competitors’ prices
- Going-rate (Most similar to perfect competition) or Competitive bidding
- Market-oriented (based on customers)
- Price set based on:
Marketing strategy – New prods, in line with positioning. Old prods, in line with strategy
Customer value – Trade off Analysis / Experimentation / Econ Value to the Customer
Price-quality relationships – Relation ship between price and quality
Product line pricing – Price in line with other products in the company’s prod line
Negotiating margins
Political factors – In line with public interest
Costs
Effects on supply-chain – Profits in all parts of a chain
Competition – Many levels of competition
Explicability – Can the price setting be explained - Maximum of what the customer accept to pay
What are the price strategies for product launch?
Rapid skimming: High promotion, High price
Slow skimming: Low promotion, High price
Rapid penetration: High Promotion, Low price
Slow penetration: Low promotion, Low price
What are the different price strategies?
- Psychological pricing – Emotion-based pricing. Not/less relevant for B2B.
- Odd prices – 99,90 SEK
- Habit-based pricing – The customer is used to a certain price. Tram ride.
- Prestige pricing – The customer is led to believe that the product is better, if the price is higher. Hair dressers, brand products.
- Bundling – Many products are bundled and given a common price. Charter travels.
- Differentiated pricing – Different prices for the same product. Hotel rooms. Black
Friday prices. Boxing Day discounts. High Street vs Outlet - Promotional pricing – Very low prices on selected products which makes
consumers come to the stores for additional purchases - Professional pricing – Prices on services. Set percentage, standard price or
time-based fees - Discounts within B2B – Volume discounts, price related to way of payment
(up-front, invoice), discounts with deadlines
Who are the possible actors in Distribution channels for consumer goods?
Producer
Agent
Wholesaler
Retailer
Consumer
Who are the possible actors in Distribution channels for B-2-B?
Producer
Agent
Distributor
Business Costumer
What are the different possible actors in Distribution channels for services?
Service provider
Agent
COnsumer
Explain the pull or push system
- Pull – Work with the “consumers” demand
TV/YouTube/FB advertisement - Push – Work with the distributors wish to sell
Sales competitions
Help with inventory and (advertisement) material
What are the Factors influencing channel selection?
- Market factors
Buyer behavior
Geographical - Producer factors
Resources
-Product factors
Large/small - Competitive factors
Lock-in/Preferred suppliers
Explain AIDA model
Attention
Interest
Desire
Action
What are part of the promotional mix?
- mass marketing:
Advertising
Public relations
Sales promotion - Direct marketing:
Direct marketing
Personal selling - Exhibitions
- Digital marketing:
Digital promotions and social media communications
What are four causes of poor perceived quality?
- Misconception
We don’t understand what the customer expects - Inadequate resources
We don’t/can’t provide resources to meet customer expectations - Inadequate delivery
We deliver poor or inconsistent service quality (poor selection, training, and/or rewarding of staff) - Exaggerated promises
We promise (via advertising and selling) more than we can deliver
What are the different parts of the pyramid model of service marketing?
Company
Technology
Employees
Customers
Quick explanation of 7 P’s?
- Product – Brand name, quality of physical product, and add-on services
- Promotion – Tangible cues, testimonials, reference selling, word of mouth, communicate with own staff, don’t
exaggerate - Price – Indicator of perceived quality, used to control demand, price sensitivity is a key segmentation variable
- Place – More direct contact with customers than for goods, especially via Internet. Location is important.
- People – Customer-first attitude. Reduce nuisance.
- Process – External: Transparency regarding how interactions will be performed. Internal: Easy-to-follow to-dolists to secure service quality
- Physical evidence – Tangible evidence to select (ambience, design, layout), and to remember (towels,
chocolate, memorabilia)
What are the parts of customer retention?
Bonding
Internal Marketing
Building trust
Servie recovery
Promise Fulfilment
Targeting customers for relation
What are some Direct Marketing Communications
Techniques?
- Direct mail
Promotions, invitations, discounts, coupons, catalogues
Mass marketing towards mass customization - Direct response advertising
Often online - ”Buy this!” – ”Shop now!” – ”Read this!” – ”Sign up!” - Direct selling
”Knock on doors” - Email marketing
For building and maintaining close customer relationships
Promotional messages and offers
Low-cost method
Spam / Challenge to get customers to open - Coupons
For acquiring customers and encourage trial of new products and services
-Telemarketing
Call customers – Inbound (customers calling the company) or outbound – Brand impression - Exhibitions and trade shows
Important part in B2B trade
Meet people to build relationships
Across the entire industry – Suppliers, competitors, customers, other stakeholders
What are the Stages in marketing research process?
Research planning
- Initial contact
* Contact with the one performing market research
- Research brief
* Requirements when having someone else performing market research on your behalf
- Research proposal
* Objective – What will be done – Timetable - Costs
What are the parts of situation analysis?
Macro environment
Micro environment
The company
What are the parts of a competitor audit?
Assess strengths and weaknesses
- Identify key/critical success factors in the industry
* 6-8 factors
* Functional (for example, financial strength) or generic (for example, innovativeness)
- Rate competitors (and our own company) on each key success factor
* Create competitor profiles (Figure 19.4, p. 644)
- Consider implications for competitive strategy * Build – Growth markets, exploitable weaknesses
* Hold – Firm is market leader in a mature or declining state
* Harvest – Market in decline, core customers exist, firm has future new products
* Divest – Low market share in declining markets
* Niche – Niche market opportunities, small budget available
What are the parts of a market analysis?
- Size
- Current
- Potential
- Market growth
- Market profitability – See Industry Analysis (Porter’s Five Forces)
- Cost structures in the industry – What does the distribution of costs look like for the main
cost drivers? - Distribution systems – ”From the mine to the customer”
- Trends and developments
- Key Success Factors
What are the parts of a industry analysis?
- Porter’s Five Forces – Used in order to understand the profit potential for an industry
- Critical Success Factors – Identified to understand for a company to be successful within a
certain industry
What are the different competitive strategies?
- Differentiation
- Cost leadership
- Differentiation focus
- Cost focus
How do you create a differential advantage?
- Superior skills and resources are translated into a differential advantage only when the
customer perceives the the firm is providing value above that of the competition. - Differential advantages are created when skills and resources are liked to the key attributes
(choice criteria) that customers are looking for in a market offering - Differential advantages can be created with any aspect of the market offer (marketing mix).
Segmentation in theory
- Behavioral variables – Base for segmentation
- Customer need or benefits sought
- Purchase behaviour / buying patterns
- Psychographic variables – Used when purchasing behaviour is correlated to personalities
or lifestyle - When differences have been found, describe segment. This could be supported by profile
variables - In practice, segmentation might not follow this sequence…
What is the objective of positioning?
is to create and maintain a distinctive position in the market for a company
and its products
What are the parts o the price triangle?
Customers
Competitors
Company
What are the Functions of channel intermediaries?
Sell directly to the end customer / user, or use channel intermediaries?
* Reconciling the needs of producers and consumers
* Improving efficiency
* Improving accessibility
* Providing specialist services
