Exam prep

Question 1

Define Ansoff’s growth matrix:

Answer 1

Essentially this marketing strategy is focused on the maximization of sales through the implementation of the correct strategy.

Question 2

Ansoff’s growth matrix diagram:

Answer 2

1. Market penetration - existing product / existing market
2. Market development - existing product / new market
3. Product development - new product / existing market
4. Diversification - new product / new market

Question 3

BCG growth matrix defined:

Answer 3

This matrix allows companies to analyse their current industry performance and market share compared to other industry competitors

Question 4

BCG growth matrix diagram:

Answer 4

1. Star - high growth / high market share
2. Cash cow - low growth / high market share
3. Dog - Low growth / low market share
4. ? - high growth rate / low market share

Question 5

Porters differentiation strategy

Answer 5

These strategies focus on a business focusing on areas that is is effective in.

1. Cost leadership - Kmart / the warehouse
2. Differentiation -product / icebreaker merino wool
3. Focus - on a particular product / area

Question 6

Treacy and Wiersema strategies:

Answer 6

These consist of the philosophies;

1. Operational excellence - Vodafone ‘NZ’s most reliable’
2. Product leadership - Apple mac / iPhone
3. Customer intimacy - Facebook / Spotify

Question 7

Brand extensions (branding strategy)

Answer 7

Brand extensions

The strategic use of a brands equity to leverage consumers into buying other products under the brand name.

Extensions move in both breadth and depth - Samsung galaxy s1, s2, s3 ect is depth

Question 8

Umbrella approach (branding strategy)

Answer 8

All the company’s product lines will have the one brand name attached.

example - Mitsubishi / cars / electric ect

Question 9

Global brands (branding strategy)

Answer 9

To be defined as a global brand a company must make at least 30% of its brand revenues from overseas.

Question 10

House brands (branding strategy)

Answer 10

Is where a company introduces a new brand name for every new major line it brings out.

example - My own work FSL Foods - Fruzio / mission ect

Question 11

Brand communities

Answer 11

Are a group of people coming together to share their love of the brand and its products.

Much more common with the expansion of social media

Can be good / bad for companies - needs to be regularly maintained

Question 12

Price skimming (Pricing strategy)

Answer 12

Where the price is initially set as high as possible then drops over time to meet other consumers demands

example - T.V’s, computers, most electronics, music ect

Question 13

Penetration pricing (Pricing strategy)

Answer 13

Is the opposite to price skimming - prices are initially set lower than the market price and over time rise to meet the market price. This is done to draw consumers in often implemented for new products in highly competitive industries.

Question 14

Pricing differentiation strategies (Pricing strategy)

Answer 14

A pricing strategy that charges different segments of customers altered prices for the same products or services. If the prices are set too high demand will drop, therefore pricing is set by the consumer.

example - Microsoft charging NZ $1000 for a product that costs $500 in the US

Question 15

The 5 C’s

Answer 15

1. Customer
2. Company
3. Context
4. Collaborators
5. Competitors

Question 16

STP

Answer 16

1. Segmentation
2. Targeting
3. Positioning

Question 17

4 P’s

Answer 17

1. Product
2. Price
3. Place
4. Promotion

Question 18

Distribution channels - channel design

Answer 18

Distribution channels consist of up to 4 intermediaries

1. Manufacturers
2. Wholesalers
3. Retailers
4. Consumers

A channel design is the way in which a business implements its distribution channel

example - Dell skip the middle men and provide the consumers with the product direct. Manufacturer –> Consumers.

Question 19

What the correct channel design has taken into account:

Answer 19

The correct channel design will have analysed consumers needs, the channel objectives, and have evaluated other possible channels of distribution.

Question 20

Intensive distribution (Distribution strategy)

Answer 20

Is where the product is made widely available
(Often a convenience product)

examples - chewing gum / cigarettes

Question 21

Selective distribution (Distribution strategy)

Answer 21

Is where the product is only available from specific retailers. Expensive products normally fit into this category / products that require allot of information before purchase

examples - consumer electronics / apple stores / Rolex’s sold at jewelers ect

Question 22

Push strategy

Answer 22

A business will push its products onto the retailers and consumers, often this is done via a sales force at the retail level.

examples - selective distribution, often complicated of expensive products, often requires sales force.

Question 23

Pull strategy

Answer 23

Where businesses advertise directly to the end consumer in order to create the demand for the product - this leads to retailers requesting the product.

examples - wide distribution, simple products, often no sales force, and often have lures.. buy one get one free ect