Chapter 6 Flashcards
3 step approaching to working out if you have a high or low market share
1) see if you are bigger than your competition
2) check the narrative see if it tells you
3) calculate it
what is considered a high market growth
over 10%
what is SAF
Suitability, acceptability and feasability
what does suitability mean in terms of SAF
does it align with our goals / SWOT
What does acceptability mean in terms of SAF
will stakeholders accept it?
What does feasability mean in terms of SAF
do we have financial / competences, management or skilled labour to do it?
how do you differentiate
build brand image
give product special features
exploit activities of value chain such as speed of delivery
use IT and innovation
build customer relationships
what are the 7 P’s
product
placement (how do customers get it)
promotions (advertising, sales etc)
price
people ( interaction between customers and staff)
processes (fast and efficient )
physical evidence (important for a service as its intangible)
which of 7 P’s relates to goods
product
place
price
promotion
which of 7 P’s relates to services
people
processes
physical evidence
what is lock in
achieved in a market when an organisations product becomes the industry standard
what is on the vertical axis of the BCG Matrix
market growth
what is on the horizontal axis of the BCG matrix
market share
waht is high MS and high MG on the BCG
star ( let it shine)
how does the vertical axis go on the BCG
Low to high
how does the horizontal axis on the BCG
high to low
waht is high MS and low MG on the BCG
cash cow ( milk it )
waht is low MS and high MG on the BCG
question mark ( answer the question)
waht is low MS and low MG on the BCG
dog (put it down)
what is on the vertical axis of the public sector portfolio matrix
public or political need ( and therefore support for the expense)
what is on the horizontal axis of the public sector portfolio matrix
ability to service effectively
how does the vertical axis go on the public sector portfolio matrix
low to high
how does the horizontal axis go on the public sector portfolio matrix
high to low
what is high public or political need and high ability to serve effectively
public sector star
what is low public or political need and high ability to serve effectively
golden fleece - potential targets for cost cutting. good at what they do but no demand
what is low public or political need and low ability to serve effectively
back drawer issue - low priority for funding and candidates for cuts
what is high public or political need and low ability to serve effectively
political hot box - not adequate resources for what the public wants
what is on the vertical axis of the growth vector matrix
markets
what is on the horizontal axis of the growth vector matrix
products
how does the horizontal axis go on the growth vector matrix
existing to new
how does the vertical axis go on the growth vector matrix
new to existing
how do you grow with existing products in an existing market
market penetration - increase MS via promotions etc. low risk strategy
how do you grow with existing products in an new market
market development - finding new customers for a product you already sell. risk is fairly low
how do you grow with new products in an new market
diversification - risky
how do you grow with new products in an existing market
product development - riskier as investing in new products which customers may not like
