Chapter 1 Detail

Question 1

Mintzberg’s 5 P’s: Plan

Answer 1

Thought process before plan is implemented.

Question 2

Mintzberg’s 5 P’s: Ploy

Answer 2

The focus is on the role of strategy in outwitting a competitor

Question 3

Mintzberg’s 5 P’s: Pattern

Answer 3

Identified only after it

has been executed and is therefore a “pattern in a stream of actions”

Question 4

Mintzberg’s 5 P’s: Position

Answer 4

Strategy is considered to be a mediating force between organization and
environment

Question 5

Mintzberg’s 5 P’s: Persepective

Answer 5

Not only a rational, economic process but also influenced by individuals

Question 6

Questions to ask at corporate level strategy NB!

Answer 6

Which business are we in and which business do we want to be in?
What are our basic directions for the future?
What is our culture and leadership style?
What is our attitude to strategic change and what should it be?

Question 7

Concerns of corporate level strategy

Answer 7

Scale

Scope

Question 8

Questions to ask at business level strategy NB!

Answer 8

How do we compete successfully?
What is our sustainable advantage?
How can we innovate?
Who are our customers?
What value do we add? 
Where? Why? How?

Question 9

Purpose of corporate level marekting

Answer 9

Creating a strong and favourable corporate identity
and reputation
Strong corporate brand
Competitive advantage in chosen markets (through
communications and strategy)

Question 10

Competitve advantage strategy: Cost leadership

Answer 10

Producing at a production cost significantly lower

than competitor

Question 11

Competitve advantage strategy: Cost focus

Answer 11

Best cost position because they produce at cost leader cost (lowest) and ask premium prices

Question 12

Competitve advantage strategy: Differentiation (Broad and Narrow)

Answer 12

Providing perceived benefits that customers are willing to pay more for

Question 13

The marketing concept

Answer 13

In order to attain organizational objectives, you have to satisfy customer’s needs better than competitors

Question 14

Marketing myopia NB!

Answer 14

Levitt stated in his thesis, ‘Marketing Myopia’, that it is important for marketers to focus on customer
needs and look beyond the internal environment of the organization and the products that it sells.

Question 15

Characteristics of strategic marketing NB

Answer 15

Driven by vision, strategic objectives and corporate strategy – marketing is subservient and supportive
Driven by customer needs and heterogeneous markets – focus on needs and segmentation to
build lasting, mutually-beneficial relationships
Focuses on segments where you can compete successfully – identify segments that you can provide for through strength and capabilities
It is everybody’s responsibility – marketing is inter-functional
It is dynamic – your strategy should change as environment change

Question 16

3 Basic targeting strategies: Undifferentiated/mass marketing

Answer 16

One undifferentiated product is offered to the total market

Question 17

3 Basic targeting strategies: Differentiated

Answer 17

Different products are offered to every segment

Target 2/more segments with different value propositions and positioning strategies.

Question 18

3 Basic targeting strategies: Focused/Concentration/Niche

Answer 18

Targets a few segments with a product
If you only target one segment it’s a niche strategy
Avoids direct competition with large competitors

Question 19

Targeting strategy: Growth market strategy

Answer 19

Focus on a few high-growth product-market segments, even if they are initially not very large