Bodo's practice questions Flashcards
From a business perspective, what are the three key elements of globalization?
- Capital Base (Financial Crisis)
- Markets (Fortune 500)
- Supply Chain (flood in Thailand effectign EU trade)
Why do strategy, organizational design, and marketing all show tensions between polar positions when companies are operating global?
Because they are all different strategic vantage points and all need their own strategy which can contradict
What is the role of regional headquarters?
Communicate locally, understand demands, coordination
Why does marketing often have a bad reputation?
Incidents like the horse lasagna or the general negative perspective that is around it, making money with shit
What did Drucker see as the purpose of business?
Businesses have to be creative and break rules (the norm) e.g. Tesla, Uber, etc.
How did Regis McKenna define Marketing in the Harvard Business Review?
Marketing is Everything
Which two questions help in deciphering the strategic semantic jungle?
Hierarchy and Focus
How did Porter differentiate between “operational efficiency” and “strategy”?
Operational Efficiency: what you do better
Strategy: fiugre out what to do
What are the five key building blocks of the “Strategy Cascade”?
1) Winning Aspiration (vision)
2) Where to operate (market selection)
3) How to operate (strategy)
4) What capabilities
5) What management systems
What drives the “Where to Play” decisions of companies?
Market Attractiveness vs. Market Potential
Market Share vs. Market growth (BCG)
What is the difference between market attractiveness and market position?
Attractiveness focuses on growth only while market positionis on the ability to win (e.g. market share)
What are Porter’s three generic strategies?
(Focus), differentiation, cost leadership. If asked about 2 - Low cost of differentiation
Why does the “Strategy Cascade” have feedback loops?
Always something to improve, ensure continuosus learning, dynamic cycle
What is meant by “playing the spread”?
Focus both on differentiation and low costs like IKEA
What are the three different corporate success strategies identified by Treacy and Wiersema?
Best Product (Product Leadership= Best Cost (Operational Excellence) Best total solution (Customer Intimacy)
What are the four main questions companies should address in order to derive at a new “value proposition”?
Reduce
Eliminate
Create
Raise
In what way does the “Resource based view of the firm” alter how managers analyze corporate strategy?
Porter only tells what to do, but not how, the RBV formulates a strategy with resources and capabilities
What is the difference between FDIs and Portfolio Investments?
FDI: investment in a foreign company, equity capital stake > 10%, certain impact/ influence/control over the investment
Portfolio: equity capital stake <10%
Why is there a tension between global rationalization and local responsiveness?
Strategists want to go global while marketers emphasize local responsiveness and adaption
Which environmental factors hinder global rationalization/ standardization?
Cultural, social or political forces, legal geographic or infrastructure
Which framework(s) can be used to analyze environmental influences on marketing?
PESTLE (political, economical, social, techonolical, legal and environmental)
What is the difference between trademarks, patents, and copyrights?
Copyright is for something created (books), patents for an innovation (medicine, etc.) and trademarks is for a brand (Lacoste)
How can culture be measured?
Hofstede and Schwartz: cultural dimensions Theory, Value Survey Model: Power Distance (high vs. Low), Individualism vs. Collectivism, uncertainty avoidance, etc.
How do differences in values affect global marketing?
Market campaigns have to be updated (e.g. condoms cannot be marketetd in Ireland)
What are examples of religious influences on marketing
Kosher food at McDonalds, Halal Haribo Bears
How do aesthetic differences affect global marketing?
e.g. in China people want to be whiter and in the West browning products are preferred
What is the core idea behind Hofstede, Schwartz, and Hall’s work on culture?
Attitude/ values determine behavior, identity undergoes constant transformation
What is the difference between a “push” and “pull” strategy?
Push product through the market with extensive marketing, pull product by getting people interested in something they don’t know
How can differentiated advertising help to curb grey markets?
By giving equal products from the same company different names in different countries these can’t be bought/sold for different prices in different countries. Meaning you cannot buy shampoo for 1€ in country A to resell it for 2€ in country B.
Which questions should be asked before engaging in a standardized marketing communication campaign?
Has the market developed the same way
Are the consumer targets similar
Do consumers share the same wants and needs
What are the four major segmentation approaches?
Geopraphic, socio-demographic, psychological and behavioural
Why is behavioral segmentation increasing in importance?
Because it is related to big data and makes personalized targeting possible e.g. Netflix, also future preferences can be predicted
What is meant by Consumer Typologies?
Analyze spending habits of customers, classify heterogenous populations into subgroups for targeted marketing (e.g. Beer in USA)
How can Big Data improve targeting?
Beauty or Horror of Big Data: has the ability to combine data from different sources to target the right customer with the right content (lack of laborforce – data scientist)
What is the connection between segmentation, targeting and positioning?
Segment the customer group into different sub-groups, then target specific segments and finally position the products for the targeted segment
What are the three key elements of positioning?
Building a frame, creating parity, differentiation
How does positioning via experience marketing work?
With rising prices for the same product (e.g. unbranded is cheapest, then Nestle, then McDonalds and then Starbucks), Entertainment, Education, Escapist
What has made FAANGs and BATs so powerful?
Their monopoly, Word of Mouth, Networks
What has driven the strong growth of e-commerce and e-payment in China?
More open to innovation, speculation of false money and safety
Will there be only online shopping in future?
No, because retailing is also a form of enterntainment and involves personal contact
What distinguishes today’s digital consumer from the traditional brick and mortar consumer?
Higher expectation, shorter attention spam
How do new interfaces (e.g., touch, voice, wearables) impact consumer behavior?
Make it more accessible, influence the customer
How do voice searches impact branding and pricing of FMCG?
More expensive is product is found via voice searching, product will prefer products from the same bran e.g. Alexa prefers Amazon brands
Why does digitalization lead to a shift from ownership to sharing?
People do not necessarily need to own something, e.g. cloud usage or shared cars, no physical product available
What are the key components of digital marketing strategy?
Digital website, banner, content marketing, SMM, pay-per-click
What is the difference between free and paid listings?
Paid listings cost money but will be on top in Google search while free listings have to be SEO optimized to be in the top results
What is the difference between owned, paid, and earned media?
Owned is the own website or blog, while paid media are ads that you paid for and earned is free promotion that you mostly receive because people love your product, customer become the channel
What is content marketing?
Everything that involves the creation and sharing of media: books, newsletters, podcasts, etc.
What is meant by big data?
Volume, Velocity and Variety, combination of large data sets
How does big data impact the way we can target consumers?
Personalized recommendations that make targeting even more personalized
Who was Janus
One of the oldest roman gods, Symbol for change
What are Ultra High Net Worth (UHNW) individuals?
people with a net worth of over 30 mn USD assets
Roughly what proportion of the world population lives of less than $10 a day?
70%
Has the proportion of global poverty increased or decreased during the last 100 years?
decreasing
Has income inequality (the gap between rich and poor) been increasing or decreasing during the last few decades?
Increased, roughly the 26 richest people owned a net worht of the poorest half of the world
Is the world becoming more protectionist?
Yes, e.g. Brexit, USA, China
Are we suffering from overpopulation?
Yes, the size of the 50 poorest countries in the world is expected to triple by 2050
What is meant by paradigmatic changes?
Fundamental shift of how business is done
What does the acronym VUCA stand for?
Volatility, uncertainty, complexity, ambiguity
Which four developments (drivers) suggest an end to ‘business as usual’
Change in paradigm how to be successful, demand for sustainability, growth of emerging markets, fast change of technology
What are the implications of the move towards a sharing economy?
Less capital intensive business models are made possible
Why can we expect an increasing demand for sustainability?
Customer demand, legal/regulatory influence, efficiency and effecctiveness
What are the UN sustainability goals and how are they likely to impact on global marketing activities of MNEs?
17 SDGs, business will try to follow them and incorporate them in their business model
