Course summary Flashcards
What are the five key questions for identifying consumer? B-2-C and B-2-B
Who is important?
How do they buy?
Where do they buy?
When do they buy?
What are their choice criteria?
What are the buy phases? The orginazational decision making process
Recognition of problem
Determination of specification and quantity
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of suppliers
Selection of an order routine
Performance feedback and evaluation
Situational analysis has three layers. From outside in they are:
Macro
Micro
The company
6 factors of the pestle analysis
Political
Economical
Enviromental
Legal
Social and cultural
Technological
Microenviroment consists of four analysis
Industry
Market
Customer
Competitor
Customer analysis
To understand current and prospective customers’ behavior
What is competitor analysis?
To evaluate and learn to understand competitors’ strengths,
weaknesses and reaction patterns
Five key questions for competitor analysis:
- Who are our competitors?
- What are their strengths and weaknesses?
- What are their strategic objectives and thrust?
- What are their strategies?
- What are their response patterns?
Industry analysis
To evaluate and learn to understand the “rules” and structure of the
industry where you are active
* Porter’s Five Forces
* Critical Success Factors
Market analysis
To understand market size, growth rates and trends
* Size
* Market growth
* Market profitability
* Cost structures in the industry
* Distribution systems
* Trends and developments
* Key Success Factors
Porter’s Five Forces
Threat of new entrants
Bargening power of suppliers
Bargening power of buyers
Threat of substitute products or services
Dergree of rivalry in the indestry
To do a company analysis you can use the ___ method
SWOT
SWOT is:
Strengths (Internal – Controllable)
Weaknesses (Internal – Controllable)
Opportunities (External – Uncontrollable)
Threats (External – Uncontrollable)
Strategic thrust
Defines the future direction and areas of potential growth for a business
* Market penetration/expansion
* Market development
* Product development
* Diversification/Enter new markets
The four competitive strategies are
Differentiation - stand out from competitors, meet one critera used by many buyers (nissan)
Cost leadership - lower cost than competitors, many customers -> lower prices (walmart)
Differatiation focus - specialise to meet the needs of a small market segment (chemical companies)
Cost focus - dedicate to one segement and avoid overperforming when meeting need (ryanair)
Competitive advantage can be achived through
Superior skills
Superior resources
Core competences
How do we locate superior skills and resources?
Examine your value chain
How to create a differential advantage
Superior skills and resources are translated into a differential advantage only when the
customer perceives the the firm is providing value above that of the competition.
Differential advantages are created when skills and resources are liked to the key attributes (choice criteria) that customers are looking for in a market offering
Differential advantages can be created with any aspect of the market offer (marketing mix).
Sustaining differential advantage
The key to achieve a long-term advantage is to focus on areas that competition finds impossible or very difficult to copy. Like:
- Patents
- Relationships
- Innovative products
Eroding differential advantage
Tech and environment change
Competitors lean to imitate sources of diff adv
Complacency lead to lack of protection
Segmentation is
Dividing market in to segements and targeting those specifically
Segmentation can be made in one or more of the following categories
Behavioural - Benefits sought, purchase occation, perchase behavoiur, usage
Psychographic - Lifestyle, personality
Profile - Demographic, Socioeconomic, geografic
A succesfull segmentation needs
Substantiality
Measurability
Accessibility
Actionability
Positioning
The objective is to create and maintain a distinctive position in the market for a company and its products
Perceptual mapping
Identify competitors
Identify important attributes for customers
Conduct market research
Plot perceptual map
Four Cs for successful positioning
Clarity
Consistency
Credibility
Competitiveness
The basic model of a product is three layerd and constist of
Core product
Actual product
Augmented product
Core product is
The product itself
Actual product is
- Features
- Quality
- Styling
- Package
Augmented product is
- Installation
- Delivery
- Guarantee
- Brand
- Service
The four stages of product life cycle (PLC) is
Introduction
Growth
Maturity
Decline
Four strategic market objectives are
Build
Hold
Harvest
Divest
Existing markets + existing products =
Market penetration
Existing markets + new products =
Product development
New markets + existing products =
Market development
New markets + new products =
Diversification
Three pricing methods are
Cost oriented (B2B)
Competitor oriented (based on competitors)
Market oriented (based on customers)
Cost oriented pricing
What does it cost to produce and sell?
Competitor-oriented pricing
Price set due to the influential competitors’ prices
Market-oriented pricing
Price set based on:
* Marketing strategy – New prods, in line with positioning. Old prods, in line with strategy
* Customer value – Trade off Analysis / Experimentation / Econ Value to the Customer
* Price-quality relationships – Relation ship between price and quality
* Product line pricing – Price in line with other products in the company’s prod line
* Negotiating margins
* Political factors – In line with public interest
* Costs
* Effects on supply-chain – Profits in all parts of a chain
* Competition – Many levels of competition
* Explicability – Can the price setting be explained
Maximum of what the customer accept to pay
Price strategies for product launch: High price + high promotion =
Rapid skimming
Price strategies for product launch: High price + low promotion =
Slow skimming
Price strategies for product launch: Low price + high promotion =
Rapid penetration
Price strategies for product launch: Low price + low promotion =
Slow penetration
Channel strategy is divided into three parts
Channel selection
Distribution intensity
Channel integration
In advertising, AIDA means
Attention
Interest
Desire
Action
5 step communications decisions
- Identify target audience
- Set communication objectives
- Create messages
- Decide on promotional mix
- Set the budget
Examples pf mass marketing are
Advertising
Public relations
Sales promotion
Examples of direct marketing are
Personal selling
Exhibitions
Direct mail
Coupons
Telemarketing
Email marketing
Search engine marketing
Examples of digital marketing are
Digital promotions
Social media communications
Influences on the promotion mix
- Available resources
- Push or pull strategy
- Buyer readiness stage – where in the decision process
- Product life cycle
- Product characteristics
- Market size and concentration
Influences on the promotion mix
- Available resources
- Push or pull strategy
- Buyer readiness stage – where in the decision process
- Product life cycle
- Product characteristics
- Market size and concentration
7 P’s
Product
Promotion
Price
Place
People
Process
Physical Evidence
Serives are characterised by
Inseparability
Intangibility
Perishability
Variability
Four causes of poor perceived quality
Misconception - We don’t understand what the customer expects
Inadequate resources - can’t provide resources to meet customer expectations
Inadequate delivery - poor or inconsistent service quality
Exaggerated promises - promise more than we can deliver
Improving productivity without compromising quality
Technology
Customer involvment in production
Balancing supply and demand
Managing service staff
Staff-customer interpersonal relationships is key
Staff can provide vital input for R&D
People who stop buying a service, do it because of staff being indifferent or
unhelpful
Triangle/Pyramid of Service Marketing
Company
Employees
Customers
(Technology)
Value should be created..
..at every point where a customer touches a firm
Benifits of successful relationship for company
- Increased purchases
- Lower cost
- Lifetime value of a customer
- Sustainable competitive advantage
- Word of mouth
- Employee satisfaction and retention
Benifits of successful relationship for customer
- Risk and stress reduction
- Higher-quality service
- Avoidance of switching costs
- Social and status benefits
