Cours 2 Flashcards
What is the company’s mission?
A mission statement is a concise explanation of the organization’s reason for existence. It describes the organization’s purpose and its overall intention,
What is a strategy?
It is a long-term vision of the means that will be used to achieve a final objective.
What is a tactic?
It is an element used within the strategy to achieve the final objective.
What is a competitive strategy?
it is a business strategy defined by one’s own company in relation to competitors.
What is a developmental strategy?
It is a business strategy defined by how a company plans to grow
What is a leadership strategy?
It is a company that is given the market and that is recognized as a leader by competitors.
What is a challenger strategy?
It is the company that is considered the main rival of the leader; it seeks a dominant position.
What is a follower strategy?
It is a competitor with a small market share that adapts its action to its competitors.
What is a specialist strategy?
It is a company that focuses on a distinct market segment.
How should leader companies behave?
- Defend or grow their market share.
- Try to grow the overall market.
How should challenger companies behave?
- It takes advantage of the leader’s weaknesses.
- It battles the leader using the leader’s own method.
How should follower companies behave?
- They retain market share.
- They respond to leader actions to remain competitive.
How should specialist companies behave?
They serve a niche need that is not being met by others in the industry.
Give ways to penetrate a market.
- By increasing current customers’ rate of use.
- By attracting competitor customers.
- Attract non-users.
What are the ways to increase current customers’ rate of use?
- By increasing the number of units purchased at a time.
- By accelerating the product obsolescence rate.
- By advertising for other uses.
- With monetary premiums for increased use.
What are the ways to attract competitors’ customers?
- By better defining a brand differentiation.
- By enhancing communication efforts.
What are the ways to attract non-users?
- By encouraging users to try products.
- By pushing prices up or down.
- By advertising new uses.
What are the 2 ways to develop a new market?
- By opening new geographic markets.
- By attracting other market segments.
What are the ways to open new geographic markets?
- With regional expansion.
- With national expansion.
- With international expansion.
What are the ways to attract other market segments?
- By penetrating other distribution channels.
- By advertising in other media.
- By developing attractive product versions for other sectors.
What is a brand extension?
It is when a company uses one of its established brand names on a new product or new product category.
What are line extensions? Give example.
It is to develop new products like what you already make like deodorant scents.
What are complementary extensions? Give example.
It is to develop new products that complement what you already make like BeautyBlender Foundation.
What are brand authority extensions? Give example.
It is to develop products within your expertise & authority like Dayson AirWrap.
What are lifestyle extensions? Give example.
It is building a strong brand community that will buy unrelated branded goods like RedBull TV.
What is the concept of diversification?
It is to develop. new products for new markets.
What are the components of the BCG Matrix?
- Purpose
- Dicision
- Market Growth Rate
- Relative Market Share
What is the purpose of the BCG matrix?
It is to evaluate the strategic position of a business’ brand portfolio.
What is the purpose of a decision in a BCG Matric?
It is to know which products to invest in and which to divest from.
What is the purpose of the market growth rate in a BCG matrix?
It is the industry attractiveness or the direction and rate of acceleration in demand in the overall market for that product category.
What is the purpose of a relative market share in a BCG matrix?
It is a competitive position. It represents. a firm’s total sales divided by the sales of their closest competitors
What is corresponding to a high market growth rate and a high relative market share?
Stars
What is corresponding to a high market growth rate and a low relative market share?
Question marks
What is corresponding to a low market growth rate and a high relative market share?
Cash cows
What is corresponding to a low market growth rate and a low relative market share?
Dogs
What is a marketing plan?
It is an analytical framework with three general elements: a situation analysis, a set of strategies, and an action program.
What are the components of the marketing plan?
- Situation analysis (where are we, and where are we going?).
- Setting objectives (Where do we want to go?).
- Resource allocation (What efforts should we invest in?).
- Defining the marketing strategy (Whom do we want to target and how do we want to be perceived?).
- Deciding on the marketing mix (How do we want to get there?).
- Implementation (what do we do?).
- Control (How will we know if we are going in the right decision?).
Describe the situation analysis element.
Markets:
- Consumers or organizational customers, demand, and segments.
Competition and environment
Company:
- Mission and objectives
- Strengths and weaknesses
- Distinctive advantage
Describe the setting objective element.
Marketing objectives:
- Sales, market share, and contribution to profits
Describe the resource allocation element.
Budget
Human resources
Describe the definition of the marketing strategy element.
Objectives and strategies
Marketing strategies:
- Target segments, desired positioning, differentiation, and innovation
Describe the decision on the marketing mix element.
It is formulating the product, pricing, distribution, communication, and innovation.
Describe the implementation element.
Statement of activities (program) for each of the marketing mix variables.
Defining responsibilities for each member of the marketing unit.
Coordinating operations
Schedule of activities
Describe the control element.
Contingency plan
Description of the means of control
Scorecard
What is a marketing audit?
It is a comprehensive, systematic, and periodic critical examination of a company’s primary marketing orientations in its environment and its implementation of them.
