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BDSMM-tenta Flashcards

1
Q

What are the three different types of customer needs?

A
  • Physical - like food, sleep and housing
  • Social - like group affiliation/connection
  • Psychological - the individual and self-fulfilment
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2
Q

What are the key success factor when satisfying customer needs?

A

To find the customers’ unmet needs

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3
Q

What opportunities can you create by satisfying customers’ needs?

A
  • Increase current market share
  • Enter a market
  • Create and dominate a market
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4
Q

What is the ‘marketing concept’?

A

“The marketing concept is the achievement of corporate goals through meeting and exceeding customer values and needs better than the competitors does”

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5
Q

Why does companies attempt to create customer value?

A

In order to attract and retain (behålla) customers

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6
Q

What is the “customer value equation”?

A

customer value = perceived expectations - perceived sacrifice

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7
Q

What does customer satisfaction depend on?

A

It depends on the product’s perceived performance compared with the buyer’s expectations.

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8
Q

When does ‘customer satisfaction’ occur?

A

It occurs when the perceived performance matches or exceeds the customers’ expectations.

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9
Q

What is needed to build loyalty?

A
  • Convinience
  • Quality of service
  • Social interaction
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10
Q

Name and explain 5 customer retention strategies

A

Targeting customers for retention - Target customers who are high-value, frequent-use, loyalty prone.

  • Bonding
    • ​We want to create bonds between us and the customers.
  • Internal marketing
    • ​Includes training, communicating with, and motivating internal staff.
  • Promise fulfilment
    • ​Make realistic promises initially
    • Keep the promises made
    • Enabling staff and service systems to deliver on promises made
  • Building trust
    • ​We need to create trust, two-way communication
  • Service recovery
    • ​Solve problems and keep problems from occurring and damaging the relationship.
    • Restore customers’ trust in the company
    • Improve the service system so that the problem does not recur
    • t.ex. kemtvätt krympte tröja, ersatte kund
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11
Q

What is the macroenvironment?

A

It consists of the actors and forces that affect a companys’ capability to operate effectively in providing products and service to its customers.

Contains PESTLE(D)

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12
Q

What does a situation analysis contain?

A
  • Environmental analysis
    • PESTLE(D) (omvärldsanalys, macroenvironment)
  • Market analysis (microenvironment)
    • Customer analysis (microenvironment)
    • Competitor analysis (microenvironment)
    • Distributor analysis (microenvironment)
    • Supplier analysis (microenvironment)
  • Industry analysis (microenvironment)
  • The company
    • SWOT
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13
Q

What is the microenvironment?

A

Concists of the actors in the firm’s immediate environment that affects its capabilities to operate effectively in its chosen markets.

  • Market
  • industry
  • Customers
  • Competitors
  • Distributors
  • Suppliers
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14
Q

What is the “P” in PESTLE(D) and give example

A

Environmental analysis of sertain factors, here with examples from Starbucks:

  • Political factors
    • These can influence marketing decisions by setting the rules by which business is conducted. For example smoking bans in public areas can have a dramatic long- and short-term effect on the demand of cigarettes.
    • Political forces are hard and complex to analyse and the impact difficult to determine
    • Laws and regulations
    • starbucks: The main political factor is about sourcing the raw materials. Also tax policy and employment laws
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15
Q

What is the first “E” in PESTLE(D)?

A
  • Economical factors
    • Has a critical impact on the success of companies through its effect on supply and demand. Some economical influences are:
      • Economic growth and unemployment
      • Interest and exchange rates
      • Taxes
    • Starbucks: The ongoing global economic recession (lågkonjunktur) is the prime external economic driver for Starbucks.
      • Other: local currency exchange rates, taxation level
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16
Q

What is the “S” in PESTLE(D)

A
  • Social and cultural factors
    • The key social/cultural forces that have implications for marketing are:
      • The changes in demographic profile of population
      • Cultural differences within and between nations
    • Culture is the combination of traditions, taboos, values and attitudes of the society.
    • Starbucks:
      • Changing family patterns in US and europe
      • Consumer preferences
      • Changing work patterns
      • Changes in lifestyles of population
      • The level of education of the population in local markets
      • Changing values among population
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17
Q

What is the “T” in PESTLE(D)?

A
  • Technological factors
    • Can have a substantial impact on people’s lives and companies’ fortunes. Many technological breakthroughs have changed the rules of the competitive game. E.g:
      • The launch of the computer and word-processing software destroyed the market of typewriters
      • E-mail largely replaced the fax machine
    • Starbucks:
      • ​Partnership with Apple to bring app based doscount coupons
      • Enabling mobile payment
      • Emergence of innovative technology
      • Biotechnological developments
      • Developments in agriculture
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18
Q

What is the “L” in PESTLE(D)?

A
  • Legal factors
    • Can influence marketing decisions by setting rules by which business is conducted(sköts). E.g:
      • In Europe, companies are affected by legalisation at EU and national levels
    • Starbucks:​
      • ​Laws and regulations
        • both in home market and countries from where they buy raw materials
        • Introduction of stricter customs and trade regulations
        • Licensing regulations related to the industry
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19
Q

What is the second “E” in PESTLED?

A
  • Environmental factors
    • In a marketing context concerns the relationship between people and the physical environmental issues that are of particular concern, e.g:
      • Climate change
      • Pollution control
      • Energy conservation
      • Use of environmentally friendly components
      • Recycling and non-wasteful packaging
    • Starbucks:
      • ​Environmental disasters in countries which produce coffee beans
      • Global warming and other environmental issues in a global level
      • Environmental rules and regulations
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20
Q

What is the “D” in PESTLE(D)?

A
  • Demographical factors
    • These factors can be a part of Social and cultural factors
    • Demography is important to marketers, it helps to predict size and growth rates of markets and the need for products. Three major demograpgical forces are:
      • Population growth
      • Age distribution
      • Household structure
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21
Q

What does PESTLE(D) stand for?

A

PESTLE(D) is an environmental analysis where you analyse different factors such as:

  • Political
  • Economical
  • Social and cultural
  • Technological
  • Legal
  • Environmental
  • (Demographical - this can be a part of Social and cultural factors)
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22
Q

What is a market analysis and why is it done?

A

It is an analysis of the market and it is done to understand

  • growth rates
  • market size
    • current and potential
  • trends
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23
Q

What is an industry analaysis snd why is it made?

A

It is an analysis of the industry and it is done to evaluate and learn to understand the “rules” and structure of the industry where you’re active.

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24
Q

What is Porter’s five forces?

A

It is used in order to understand the profit potential for an industry and determine the market attractiveness. The model measures:

  • The threat of new entrants
  • The threat of substitutes
  • The bargaining power of buyers
  • The bargaining power of suppliers
  • The rivarly between the existing competitors
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25
Q

Why is new entrants a threat?

What does it depend on?

How is the sportswear industry affected?

A

New entrants can raise the level of competition in an industry, which may ultimately reduce its attractiveness.

The threat of new entrands depends on the barriers to entry.

  • High entry barriers makes the industry harder to enter, this exist in some industries, like pharmaceuticals.
  • Low entry barriers makes the industry easier to entry, like restaurants.

The sportswear industry brands are so established, globally, that they won’t be to affected by the new entrants companies. The new company must spend lot of money to compete in the market and must invest in human capital in terms of designer teams, produktion personal etc.

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26
Q

How can you raise the entry barriers for an industry to prevent new entrants?

A

A way to raise the entry barriers is to take out patents and establish strong relationships with suppliers and distributors.

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27
Q

Why is the bargaining power of suppliers a threat?

A
  • The cost of raw materials, components and intellectual skills can have a major bearing on a company’s profitability.

The higher the bargaining power of suppliers the higher the cost.

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28
Q

How can a company reduce the bargaining power of suppliers?

A

They can do this by seeking new sources of supply, threatening to integrate backwards into supply, and designing standardized components that many suppliers are capable of producing.

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29
Q

When is the bargaining power of suppliers high?

A

When:

  • There are many buyers and few dominant suppliers
  • There are differentiated highly valued products
  • Suppliers threaten to integrate forward into the industry
  • Buyers do not threaten do go backwards into supply
  • The industry is not a key customer group to the suppliers.
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30
Q

Why is the bargaining power of buyers something take into account?

How is the sportswear industry affected?

A
  • The concentration of buyers can lower manufacturers’ bargaining power.
  • If there are few customers and many sellers, consumers/buyers have a higher bargaining power.
  • The end customer are millions of people, customers can’t negotiate prices.
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31
Q

Why is substitutes a threat and give an example?

Is the sportswear indstry affected?

A

The presence of substitutes can lower industry attractiveness and profitability because these put a constraint on price levels.

E.g. Tea and coffee are fairly close substitutes in many European countries, raising the price of coffee would make tea more attractive.

  • Yes and no, sportswear are trendy. Other clothing items are a valid

substitute for sportswear clothing, but for now there are no power to threats.

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32
Q

What does the threat of substitute products depend on?

A

It depends on:

  • The buyers’ willingness to substitute
  • The relative price and performance of substitutes
  • The cost of switching to substitutes
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33
Q

What what is ‘competitive rivarly’ and what does the degree of rivarly within an industry depend on?

How is the sportswear industry affected by industry competitors?

A

This force examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each can do.

It depends on:

  • The structure of the competition
    • Large number of small competitors
    • few equally balanced competitors
    • A clear market leader
  • The degree of differentiation
    • products that are hard to copy = less intense rivarly.
  • Switching costs
    • Specialized products that the customers has invested a lot of resources to learn how to use.
  • Strategic objectives
    • When competitors are pursuing build strategies.
    • More intense competition than when playing hold or harvest objectives.
  • Exit barriers
    • When barriers to leav the industry are high due to such factors as lack of opportunities elswhere
    • High costs of closing down = high rivarly

E.g. Nike, Puma, Adidas etc.

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34
Q

What is ‘critical success factors’?

A

It’s factors that are identified for a company to understand how to be successful within a certain industry.

There should be 6-8 critical success factors and they can be:

  • Functional
    • like financial strenght
  • Generic
    • like innovativeness
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35
Q

Why is a competitor analysis done?

A

To evaluate and learn to understand competitor’s strenghts, weaknesses and reaction patterns.

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36
Q

What are the five key questions in a competitor analysis?

A
  1. Who are our competitors?
  2. What are their strengths and weaknesses?
  3. What are their strategic objectives and thrust
  4. What are their strategies?
  5. What are their response pattern?
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37
Q

How do you identify competitors?

A
  • Product form
    • Similar product with similar solutions. (Apple/Samsung)
  • Product substitute
    • Product design an technical solution is different. (Coffee/tea)
  • Generic competitors
    • Customer problems are solved in a dissimilar way
    • Different product that solves the same problem/provides same benefit or utility. (CD/audio casettes, carpet/tiles)
  • Potential entrants
    • Technicaly similar products
    • Substitute products
    • Similar competencies or new technology can result in changed key success factors
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38
Q

How do you find out competitors strenghts and weaknesses?

A

Through:

  • Identifying 6-8 key/critical success factors for the industry.
  • Rate competitors and own company on each key/critical success factor.
    • Create competitor profile
  • Concider the implication for competitive strategy
    • The competitive profile analysis helps to identify possible competitive strategies
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39
Q

How do you find out competitors strategies?

A

By identifying their positioning strategy.

  • This involves assessing a competitor’s target market and differential advantage.
  • Marketing mix strategies may indicate that the target market is used to create differential advantage
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40
Q

Explaing the positioning strategy “Differentiation”

A

It involves the selection of one or more choise criteria that are used by many buyers in an industry. Differentiation strategies are often associated with a premium price and a higher than average cost for the industry as the extra value to customers often raises costs.

Differentiation gives customers a reason to prefer one product over another and thus is central to strategic marketing.

Examples:

  • Nissan leaf
    • Met the needs of customers looking for a greener solution
  • Dyson
    • Invented a bagless vaccum cleaner that outperformed its rivals by providing greater suction and convenience. Also differentated by their distinctive design.
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41
Q

Explaing the positioning strategy “Differentiation focus”

A
  • With this, a firm aims to differentiate within one ore a small number of target market segments.
  • The special needs of the segment mean that there is an opportunity to differentiate the product offering from that of the competition, which may be targeting a broader group of customers
  • Differentiation focusers must be clear that the needs of their target group differ from those of the broader market, otherwise there will be no basis for differentiation.

Examples:

  • Burberry
  • Ferrari
  • Dior
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42
Q

Explaing the positioning strategy “Cost focus”

A
  • With this strategy a firm seeks a cost advantage within one or a small group of target market segments.
  • By providing basic product offerings, a cost advantage will be gained that may exceed the price discount necessary to sell it.

Examples:

  • Ryanair
  • easyJet
  • Lidl
    • Targeting price-sensitive consumers with a narrow product line but with large buying power.
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43
Q

Explaing the positioning strategy “Cost leadership”

A

Focusing on cost-reducing measures rather than expensive product development and promotional strategies.

  • Involves the achievement of the lowest cost position in an industry.
  • Of great importance to minimize costs throughout the business as long as the price is around the industry average.
  • Cost leadership should result in superior performance.
  • Their low costs results in above-average profits

For example IKEA and their low proces world wide.

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44
Q

Name the four positioning strategies.

A
  • Differentiation
  • Differentiation focus
  • Cost focus
  • Cost leadership
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45
Q

It is important to be able to predict competitors response to market and competitive changes. Name and explain the 5 different response patterns.

A
  • Slow reaction due to complacency (självbelåtenhet)
  • Retaliatory (“gå till motattack”)
    • Responds aggresively to competitive changes, e.g. Amazon bought lovefilm, which is a competitive move against the US rival Netflix.
  • Hemmed-in competitor
    • E.g. A major manufacturer of car number plates. A new entrant focused on one geographical base, supplying the same quality product but with an extra discount. The national supplier could not respond, since to give discount in this region would have meant granting the discount nationwide.
  • Selectively
    • Agressive in certain areas (e.g. price) but not in others (e.g. innovations)
  • Unpredictable
    • No particular pattern
46
Q

Why is it important to analyse the competitor’s objectives and thrusts?

A

Because it provides insight into whether a competitor is satisfied with its important profit and market position, and thus how likely it is to retain its present strategy, especially when the competitor makes a particular strategic move.

Companies must understand competitor objectives and thrusts as it will influence its own strategic decisions.

47
Q

Name and explain the 5 differend strategic objectives.

A

Product-level objectives relating to the decision to build, hold, harvest, divest or niche products.

  • Build
    • Growth markets
    • Exploitable weaknesses
    • Firm has exploitable strenghts, capabilities and resources.
  • Hold
    • Firm is market leader in a mature or declining state
    • Cost exceed the possible benefits of building market share.
  • Harvest
    • Market in decline
    • Core customers exist
    • Firm has future new products
  • Divest
    • Low market share in declining markets
    • Too expensive to revive products
    • Removal will not impact on ither products
  • Niche
    • Niche market opportunities
    • Small budget available
    • opportunities to create competitive advantage
48
Q

Name the four different product growth strategies

A
  • Market penetration or expansion
  • Product development
  • Merket development
  • Entry into new market/diversification
49
Q

Explain the product growth strategy “market penetration or expansion”

A

This strategy is to take the existing product in the existing market and to attempt increased penetration.

  • Penetration
    • “winning competitors customers”, by more effective use of promotion or distribution, or by cutting process.
  • Expansion
    • convertion non-users to users of its product or by increasing the usage rate
50
Q

Explain the product growth strategy “Product development”.

A

Involves increasing sales by improving present products or developing new products for current markets.

51
Q

Explain the product growth strategy “Market development”.

A

Used when current products are sold in new markets. This may involve moving into new geographical markets.

52
Q

Explain the product growth strategy “Entry into new market/diversification”.

A

Occurs when new products are developet for new markets. Most risky strategy but may be necessary when a company’s current products and markets offers few prospects forfuture growth.

53
Q

Why is a cutomer analysis made and what are you looking for?

A

To understand current and future customer’s behaviour:

  • Who are they?
  • What is their choise criteria?
  • How, when and where they buy?
  • How do they rate competitive offerings?
  • On what variables can they be segmented/how do customers group?
  • What benefits does each customer group seek?
54
Q

What is a company analysis?

Give examples from Nike.

A

When making a company analysis you do a SWOT, which analyses and evaluates a company’s

  • Strengths
    • Only the ones that are in the customers interest
    • Nike:
      • ​Brand recognition​
      • High quality product
  • Weaknesses
    • ​Only the ones that are in the customers interest
    • Nike:
      • High price compared to competitors
      • Overseas manufacturing dependencies
  • Oportunities
    • comes strait from the PESTELD.
    • Nike:
      • Expansion into emerging markets (China)
      • Growth in female athletes
  • Threats
    • comes strait from the PESTELD.
    • Nike:
      • ​Fierce competition within industry
      • Fluctuation in currency

Ones a SWOT-analysis has been completed, thought can be given to how to turn weaknesses into strengths and threats into opportunities, create conversion strategies.

55
Q

What is a competitive advantage?

A

It is a company’s ability to perform in one or more ways that competitors cannot or will not match

“A competitive advantage is the achievement of superior performance through differentiation to provide superior customer value, or by managing to achieve lowest delivered cost.”

56
Q

Which three advantages are used (in itself, or in combinations of these three) by a company/organization in order for it to be successful?

A
  • Being better
    • providing superior quality or service.
  • Being faster
    • Anticipating or responding to customer needs faster than the competitors does.
  • Being closer
    • Establishing close long-term relationships with customers.

“If you don’t have a competitive advantage, don’t compete”

57
Q

Describe, at least, four different sources of competitive advantage, and illustrate those sources with examples from a company/organization/project.

A

The nature of these sources are superior skills and resources of a firm.

These sources can be found in:

  • The primary activities
    • Inbound logistics
    • Operations
    • Outbound logistics
    • Marketing and sales
    • Service
  • The support activities
    • Firm infrastructure
    • HR management
    • Technology development
    • Procurement
  • The links in between
58
Q

What is “marketing ethics”?

A

The moral principles and values of that guide behaviour within the field of marketing.

59
Q

Name 5 marketing ethical dilemmas and explain what many ethical dilemmas derive from.

A
  • Product safety
    • E.g. the tobacco, food and drinks industries have attracted/faced critisism regardning the potential harm their products may cause to consumers.
      • tobacco - marketing products, cigarettes, that may cause lung cancer
      • food - marketing products that have hight levels of fat, which can lead to obesity
      • drinks - marketing sugar-rich fizzy drinks (to children) which cause tooth decay and can also lead to obesity.
  • Truthefulness
    • Misleading advertising can take the form of exaggeraterd claims or concealed facts.
  • Honesty in relationship with customers
  • Pricing issues
  • Impact on the environment

Many ethical dilemmas derive from the conflict between the desire to make profits and the wish to make decisions that are ethically justified.

60
Q

Explain the “Stakeholder theory”.

A

Contends (hävdar) that companies are not managed purely in the interest of shareholders (aktieägare) alone. Rather, there is a range of groups, stakeholders, that have a legitimate interest in the company.

  • Shareholders
  • Communities
  • Employees
  • Customers
  • Suppliers
61
Q

Name and describe the four parts of “The pyramid of social responsibility”.

A
  • Philantropic
    • Corporate actions that meet society’s expectation that business be good corporate citizens.
      • Promoting human welfare of goodwill, such as making charitable donations
    • Represents the ‘icing on the cake’
      • Actions that are desired by society but not expected or required.
  • Ethical
    • Ethical responsibilities mean that the company should perform in a manner consistent with the principles and values of society and prevent ethical norms being compromised in order to achieve corporate objectives (företagsmål)
    • Establishment of laws may be founded on ethical considerations but there can be important distinctions, as with the selling of GMO products, which may raise ethical questions and yet be lawful.
  • Legal
    • Companies must pursue their economic responsibilities within the framework of the law.
  • Economical
    • Economic responsibilities:
      • Maintaining a strong, competitive position
      • Operationg at high levels of efficiency and effectiveness
      • Aiming for consistently high levels of profitability
    • The principal role of a firm is to produce goods and services that people want and to be as profitable as possible in doing so
62
Q

Name and describe the top level of the pyramid of social responsibilities.

A

Philantropic

Corporate actions that meet society’s expectation that the business are good corporate citizens.

Promoting human welfare of goodwill, such as making charitable donations

Represents the ‘icing on the cake’

Actions that are desired by society but not expected or required.

63
Q

Name and describe the layer second top of the pyramid of social responsibilities.

A

Ethical

Ethical responsibilities mean that the company should perform in a manner consistent with the principles and values of society and prevent ethical norms being compromised in order to achieve corporate objectives (företagsmål)

Establishment of laws may be founded on ethical considerations but there can be important distinctions, as with the selling of GMO products, which may raise ethical questions and yet be lawful.

64
Q

Name and describe the layer second bottom of the pyramid of social responsibilities.

A

Legal

Companies must pursue their economic responsibilities within the framework of the law.

65
Q

Name and describe the bottom layer of the pyramid of social responsibilities.

A

Economical

Economic responsibilities:

  • Maintaining a strong, competitive position
  • Operationg at high levels of efficiency and effectiveness
  • Aiming for consistently high levels of profitability

The principal role of a firm is to produce goods and services that people want and to be as profitable as possible in doing so

66
Q

There are 5 dimensions of CSR (corporate social responsibility), name them and describe the type of marketing and the key issues

A
  • The physical environment
    • Sustainable marketing
    • Key issues
      • Combating global warming
      • Pollution control
      • Recycling
      • Etc.
  • Social (community involvement)
    • Societal marketing
    • Cause-related marketing
    • Key issues:
      • Support for the local community
      • Support for the wider community
  • Consumer
    • Societal marketing
    • Key issues
      • Product safety
      • Avoidance of price fixing
      • Honesty in communications
      • Etc.
  • Supply chain
    • ​Fair trade marketing
    • Key issues
      • Fair trade standard-setting for supplies (e.g. human rights, labour standards & envirinmantal responsibility)
  • Employee relations
    • Internal marketing
    • Key issues
      • Fair pay
      • Equal opportunities
      • Training and motivation
      • Etc.
67
Q

What is price fixing?

A

When 2 or more companies collude to force up the price of products

68
Q

What is a business mission?

A

“A broadly defined, enduring statement of purpose that distinguishes a business from others of its type”

69
Q

Name and describe the roles in B2C

A
  • Initiators
    • starts the process of buying
  • Influencers
    • attempts to persuade others (by gaining information to impose choice criteria on decision)
  • Decider
    • Has the power/financial authority
  • Buyer
    • Conducts the transaction
  • User
    • Uses/consumes the product
70
Q

There are 3 different types of purchases, name and describe them.

A
  • New task
    • No or little previous experience in company
    • Lot of information is needed
  • Straight rebuy
    • When buying previously purchased items from judged and accepted suppliers.
  • Modified rebuy
    • Between the two above
    • Small changes in additional products
71
Q

Name and describe the stages in a B2B buying process.

A
  1. Recognition of a problem (need)
  2. determination of specification
  3. search o resources
  4. Analysis of proposals
  5. Selection of supplier(s)
  6. Selection of an order routine
  7. Feedback and evaluation
72
Q

Describe KAM

A

Key Account Management

a radically different organizational process used by B2B suppliers to manage their relationships with strategically-important customers, and it produces measurable business benefits

  • Close working relationship with customers
  • Improved communication
  • Penetration of DMU (decision-making unit)
  • Higher and better follow-on sales
  • Collaboration and joint projects
  • Cost savings
73
Q

Name and describe the roles in B2B

A

These roles are alltogether defined as DMU (decision-making unit)

  • Initiatiors
    • Starts the process (Maintenance manager)
  • Users
    • (Welders) need another type of iron
  • Deciders
    • Selects the supplier (Product manager)
  • Influencers
    • Provides informaiton (Accountants)
  • Buyers
    • Executing the purchase (Purchasing officer)
  • Gatekeepers
    • Controls the information flow (Secretary)
74
Q

Name the 7 P’s

A

There are 4 P’s for a product and 7 P’s for a service

  1. Product
  2. Price
  3. Place/distribution
  4. Promotion
  5. Process (service)
  6. People (service)
  7. Physical evidence (service)
75
Q

Descripe the first P, “product”

A

Anything that is capable of satisfying customer needs. For example brand name, quality of physical product and add-on services.

76
Q

Describe the product lifecycle (PLC)

A
  • Introduction
    • Low sales
    • High cost per customer
    • Few competitors
    • Financial loss
    • Innovative customers
  • Growth
    • Increasing sales
    • Cost per customer falls
    • More competitors
    • Profits rise
    • Increasing number of customers
  • Maturity
    • Peak sales
    • Cost per customer is now lowest
    • Profits are high
    • Mass market
    • Stable number of competitors
  • Decline
    • Falling sales
    • Cost per customer is low
    • Profit falls
    • Customer base contracts
    • Number of competitors fall
77
Q

Describe the second P, “price”

A

This is a key marketing tool, price may act as an indicator of perceived quality and is also used to control the demand.

78
Q

Name 3 pricing methods

A
  • Cost-oriented (B2B)
  • Competitor-oriented (based on competitors)
  • Market-oriented (based on cutomers)
79
Q

Name and describe the 4 pricing strategies for product launch

A
  • Rapid skimming
    • High price + high promotion
    • E.g. Apple iPhone which is launched with a new promotion and a very high price. or Nike
  • Slow skimming
    • High price + low promotion
    • E.g. Mercedes Benz new models, known brand that don’t need much promotion for new products.
  • Rapid penetration
    • Low price + high promotion
    • E.g. Supermarkets
  • Slow penetration
    • Low price + low promotion
    • E.g. If a new cheaper two-wheeler i launched by a well known two-wheeler company (like HD)
80
Q

Describe the third P, “place/distribution”

A

The distribution channels to be used, outlet locations, method of transportation.

81
Q

Name the distribution channels for consumer goods

A
  • Producer ——————————————————-> Consumer
  • Producer ————————————–> Retailer –> Consumer
  • Producer—————–> Wholesaler –> Retailer –> Consumer
  • Producer –> Agent– > Wholesaler – >Retailer –> Consumer
82
Q

Name the distribution channels for services

A
  • Service provider —————> Consumer or business consumer
  • Service provider–> agent –> Consumer or business consumer
83
Q

There are 2 different types of distribution, name and describe them

A
  • Push
    • Aim to move goods through the supply chain
    • Work with the distributors wish to sell
    • Sales competitions
    • Help with inventory and (advertisement) material
  • Pull
    • Aim to encourage customers to make purchases, thereby pulling goods through the supply chain from tha manufacturer to the retailer
    • Work with the consumers demand
    • Pre-announcement
    • Give launch dates to stimulate interest and excitement
84
Q

Describe the fourth P, “Promotion”

A

To decide how the company should promote itself are critical to how a firm comunicates with its target audience and engages a response.

Word of mouth is very important to most companies.

85
Q

Name and describe 6 (/7) different promotion strategies

A
  • Advertising (AIDA) - Any paid form of non-personal communication of ideas or products in the prime media: i.e. TV, the press, outdoor, cinema, radio, internet
    • Attention
    • Interest
    • Desire
    • Action
  • Personal selling - Oral communication with the prospective purchaser with the intention of making a sale.
  • Direct marketing - The distribution of products, information and promotional benefits to target consumers through interactive communication in a way that allows response to be measured.
    • ​Exhibitions
    • Personal selling
  • Digital promotions - The promotion of products to consumers and businesses through digital media channels
    • e.g. Social media communication
    • Tools:
      • Online advertising and search engine marketing
      • Online videos and interactive TV advertising
      • Content marketing - the right content affects
  • Sales promotions - Incentives to consumers or the trade that are designed to stimulate purchases
    • E.g:
    • coupons
    • free trials
    • bonus system
    • loyalty cards
  • Public relations - To educate and inform the organization’s publics through the media without paying for the time or space directly
  • Word of mouth
86
Q

Describe the 5th P, “Process”

A

Process is one of the three P’s for services only.

This describes the procedures, mechanisms and flow of activities by which a service is acquired.

Process decisions radically affect how a service is delivered to customers.

E.g. A self-service restaurant to eliminate waiting time.

87
Q

Describe the 6th P, “people”

A

People is one of the three P’s for services only.

The staff. Because of the simultaneity of production and consumption in services, the company’s staff occupy a key position in influencing customer’s preception of product quality.

Training and control of employees is important for everyone to deliver equal service quality.

88
Q

Describe the 7th p, “Physical evidence”

A

Physical evidence is one of the three P’s for services only.

The environment in which the service is delivered, and any tangible (påtagligt) goods that facilitate (underlättar) the performance and communication of the service.

Customers may gaze through a restaurant window to check the appearance of the waiters, the decor and furnishing. Color has meaning

89
Q

Why is segmenation needed?

A

To identify individuals or organisations that has similar character that affects the shaping of the current offer in a crucial way. And to find and understand your customer.

90
Q

Name and describe the requirements for an effective segmentation

A
  • Measurability
    • Whats the size, purchasing power and profits of a market segment?
    • E.g. there are quite many left-handed people in the US, yet there are few products targeted towards this left-handed segment.
    • Major problem - this segment is hard to measure.
  • Accesibility
    • The degree to which a market segment can be reached and served.
    • E.g. Suppose a fragrance company finds that heavy users of its brand are single men and women who stay out late and socialize a lot. Unless this group lives or shops at certain places and is exposed to certain media, its members will be difficult to reach.
  • Sustainability
    • The degree to which a market segment is sufficiently large or profitable.
    • A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program.
    • It would not pay, for example, for an automobile manufacturer to develop cars especially for people whose height is greater than seven feet.
  • Actionability
    • ​The degree to which effective programmes can be designed for attracting and serving a given market segment
    • For example, although one small airline identified seven market segments, its staff was too small to develop separate marketing programs for each segment.
91
Q

Name the three cathegories in segmentation to find and understand your customer

A
  1. Behavioural
    • Benefits sought
    • Purchase occation
    • Usage
    • Perceprions and benefits
  2. Psychographic
    • Lifestyle
    • Personality
  3. Profile
    • Demographic
    • Socio-economic
    • Geographic
92
Q

What is the object of positioning?

A

The object is to create and maintain a distinctive place in the market for a company and its products.

93
Q

What is positioning the choice of?

A
  • Target market
    • Where we want to compete
  • Differential advantage
    • How we wish to compete
94
Q

What are the two sides of positioning?

A
  • The objective side
    • The real difference, compared with other offers/propositions.
    • Measurable, e.g:
      • “how high fuel consumption”
      • “How much sugar does it contain”
  • The symbolic side
    • Experienced side of offer/proposition.
      • E.g. “Coca-cola were first with the cola-flavour, therefore, they are the best.
95
Q

Name the business model canvas 9 building blocks

A
  • Customer segments
  • Value proposition
  • Channels
  • Customer relationships
  • Revenue streams
  • Key resources
  • Key activities
  • Key partnerships
  • Cost structure
96
Q

Describe the building block “customer segments” in the business model canvas and give examples from Airbnb.

A
  • Customer segments defines the different groups of people or organizations an enterprise aims to serve.
  • In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviours, or other attributes.
  • Customers are the heart of any business model

Airbnb

  • Guests
    • budget travelers
    • globetrotters
    • business travelers
  • Hosts
    • locals who want to rent out their home, a room or simply a couch
97
Q

Describe the building block “Value propostition” in the business model canvas.

A
  • The value proposition is the bundle of products and services that create value for a specific customer segment.
  • This is the reason why customers turn to one company over another.

Airbnb

  • Guests
    • Guests can stay in private homes during their travels
    • Often cheaper staying in a hotel
  • Hosts
    • Rent out space effortlessly to travelers and earning money.
98
Q

Describe the building block “Channels” in the business model canvas.

A
  • How a company communicates with and reaches its customer segments to deliver a value proposition

Airbnb

  • Guests and hosts
    • Word of mouth
    • Social media
99
Q

Describe the building block “Customer relationships” in the business model canvas.

A
  • The types of relationships a company establishes with specific customer segments
  • Relationships can run the range from personal to completely automated.

Airbnb

  • Guests and Hosts
    • Self-service on the platform
    • 24/7 customer support
100
Q

Describe the building block “Revenue streams” in the business model canvas.

A
  • Revenue streams represents the cash a company gets from each customer segment (cost must be subtracted from revenues to create earnings)
  • Revenue streams are the arteries of a business model.

Airbnb

  • Guests
    • 6-12% booking fee
  • Hosts
    • 3% booking fee
101
Q

Describe the building block “Key resources” in the business model canvas.

A
  • The most important assets required to make a business model work
  • Key resources can be physical, financial, intellectual or human. (And they can be owned or leased by the company or acquired from key partners)

Airbnb

  • Community
  • Brand
  • Platform
102
Q

Describe the building block “Key activities” in the business model canvas.

A
  • The most important things a company must do to make its business model work. These are the most important actions a company must take to operate successfully

Airbnb

  • Platform maintenance
  • User research
  • Local market place development
103
Q

Describe the building block “Kay partnerships” in the business model canvas.

A
  • Key partnerships is the network of suppliers and partners that make the business model work

Airbnb

  • Paypal - payment provider
  • Investors
  • Travel communities
  • Insurances
  • Government/people influencing regulations
104
Q

Describe the building block “Cost structure” in the business model canvas.

A
  • The most important costs inccured while operating under a particular business model.

Airbnb

  • Platform design, development and maintenance
  • Marketing and community management
105
Q

Describe the diffusion of innovation process concept.

A

The concept has a crucial role to pay in the choice of a target market. The key is to understand the characteristics of the innovators and early adopters and target them at launch.

  • Innovators
    • Often venturesome and like to be different. Willing to take a chance with an untried product
  • Early adopters
    • Not quite so venturesome; they need the comfort of knowing that someone else has taken the early risk
  • Early majority
    • These (together with the late majority) form the bulk of the customers in the market. The early majority like to see products prove themselves on the market before they buy.
  • Late majority
    • The late majority are eve more cautious and possibly sceptical of new products. Social pressure may be the driving force for them to buy.
  • Laggard (eftersläntare)
    • The tradition-bound people. The innovation needs to be perceived almost as traditional before they consider buying it.
106
Q

Describe the growth share matrix

A

relative market share (cash generative) vs. relative market growth (cash usage)

  • Stars
    • high-high
    • Likely to be profitable because they are market leaders but require substantial investment to finance growth and to meet competitive challanges.
  • Cash cows
    • high-low
    • Are market leaders in mature (low growth) markets. High market share leads to high profitability and low market growth means that investment in new production facilities are minimal
  • ?
    • low-high
    • Are products in high-growth markets, which cause a drain in cash flow, but these are low-share products
  • Dogs
    • low-low
    • Also operates in low-growth markets but have low market share. Most dogs produce low or negative cash flow.
107
Q

Who buys? Describe the decision making process / buying process of a customer

A

1. Initiator

  • The person who begins the process of considering a purchase. Information may be gathered by this person to help the decision.

2. Influencer

  • The person who attempts to persuade others in the group concerning the outcome of the decision. Influencers typically gather information and attempt to impose their choice criteria on the decision.

3. Decider

  • The individual with the power and/or financial authority to make the ultimate choice regarding which product to buy.

4. Buyer

  • The person who conducts the transaction. The buyer calls the supplier, visits the store, makes the payment and effects delivery.

5. User

  • The actual consumer/user of the product.
108
Q

In what ways can customer service in physical distribution be improved? (4 ways)

A
  • Improve production availability
    • raise stock levels
    • improve accuracy, speed and reliability
  • Improve order cycle time
    • ​raise in-stock levels
    • improve consistency between order and delivery
  • Raise information levels
    • Improve salesperson information on inventory
    • Raise information levels on order status
    • Be proactive in notifying the customer of delays
  • Raise flexibility
    • Develop contingency plans for urgent orders
    • Ensure fast reaction time to unforeseen problems (e.g. Stolen goods, damage in transit etc.)
109
Q

What are the 3 aspects of competitive positioning?

A
  • Target market
    • Decisions should be made about which group of customers (segments) are most attractive to the business and best fits with its capabilities
  • Competitor target
    • ​These are the organizations against which a company chooses to compete directly.
  • Competitive advantage
    • ​A company’s ability to perform in one or more ways that the competitors cannot match
      • ​Being better
        • providing superior quality​ or service
      • Being faster
        • Anticipating or responding​
      • Being closer
110
Q
A

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