FBP - Product Dev and Mgt Flashcards
1
Q
A
2
Q
What is a marketing strategy?
A
The overall plan of how the marketing of the organisation will support the overriding business strategy.
3
Q
How does the Chartered Institute of Marketing define marketing?
A
Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably.
4
Q
What was Omar’s initial problem with his marketing strategy?
A
People in Scotland don’t need sunglasses, particularly during the winter.
5
Q
True or False: Marketing is solely about advertising and selling.
A
False.
6
Q
What are the four business orientations mentioned?
A
- Production orientation
- Product orientation
- Sales orientation
- Marketing orientation
7
Q
What does a production orientation focus on?
A
Producing as much as possible of a given product or service.
8
Q
What is the main focus of a product orientation?
A
The quality of its own product.
9
Q
Describe the sales orientation.
A
Focuses primarily on the selling/promotion of a particular product.
10
Q
What is the marketing orientation?
A
Basing marketing plans around customer needs.
11
Q
List the steps in defining a marketing strategy.
A
- Create a business strategy
- Customer research
- Market research and the business environment
- Competitor analysis
- Research the channels
- Define the marketing mix
- Budget and performance measures
- Review and control
12
Q
What is a customer value proposition (CVP)?
A
The sum of the total benefits a customer will receive from a business in return for their payment.
13
Q
What does PESTEL stand for?
A
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
14
Q
What do political factors in PESTEL analysis include?
A
Tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.
15
Q
How do economic factors affect business operations?
A
They influence decisions including pricing and marketing strategies based on economic growth, interest rates, exchange rates, and inflation.
16
Q
What social factors can affect demand for products?
A
Cultural and demographic aspects such as attitudes to health, population growth rate, and age distribution.
17
Q
What are technological factors in PESTEL analysis?
A
IT, the Internet, social media, computer security, automation, and the rate of technological change.
18
Q
Fill in the blank: A marketing strategy should be aligned with the _______.
A
[overriding business strategy]
19
Q
What was the key reason for Blackberry’s decline?
A
A lack of adaptation to the changing environment.
20
Q
What should a company do during competitor analysis?
A
Clarify the relative strengths and weaknesses of competitors and define the market position for each.
21
Q
True or False: The marketing mix includes Product, Price, Place, and Promotion.
A
True.
22
Q
What is the goal of customer research in marketing strategy?
A
To define the target customer or customers, focusing on their needs and how the product will meet those needs.
23
Q
What is the purpose of market research?
A
To understand the market size, trends, and changes to help planning for the future.
24
Q
What are technological factors in marketing?
A
Technological factors include IT, the Internet, social media, computer security, automation, and the rate of technological change
Organizations must stay aware of changes in key technologies to manage risks and adapt to new technologies.
25
What can be the consequences of failing to adapt to technological changes?
High consequences, such as becoming minor players in the industry
## Footnote
Example: Nokia and Blackberry in the mobile phone industry.
26
What are environmental factors in marketing?
Environmental factors include weather and climate
## Footnote
Growing awareness of climate change impacts how companies operate and the products they offer.
27
How can companies gain a competitive advantage through environmental factors?
By creating a marketing strategy aimed at meeting customer needs for environmentally-friendly products.
28
What are legal factors in marketing?
Legal factors include discrimination law, consumer law, employment law, and health and safety law
## Footnote
These factors can affect how a company operates, its costs, and the demand for its products.
29
What is a PESTEL analysis?
A framework for analyzing the external environment affecting a business, including Political, Economic, Social, Technological, Environmental, and Legal factors.
30
What impact can government taxes have on a car manufacturer?
Taxes on road use or fuel can increase the price of owning a car, affecting its affordability to customers.
31
What social trends can affect car demand?
Trends such as the popularity of SUVs or hybrid cars
## Footnote
Manufacturers need to devise marketing strategies that take these trends into account.
32
What does the term 'channel' refer to in marketing?
The way an organization delivers products or services to its customers.
33
What are the implications of technological advances for customer service channels?
New channels such as social media and smartphones have opened up for organizations to connect with customers.
34
What is the marketing mix?
The marketing mix outlines four controllable elements: Product, Price, Place, and Promotion.
35
What are the three levels of a product?
Core product, Actual product, Augmented product
## Footnote
Core product is the basic benefit, Actual product is the tangible item, Augmented product includes additional services.
36
What are the elements of a promotional campaign?
* Personal selling
* Public relations
* Direct Mail
* Trade fairs and exhibitions
* Advertising
* Sponsorship
* Sales promotion
37
What is social media marketing?
The process of gaining website traffic or attention through social media sites.
38
What is the purpose of pricing strategies?
To cover all costs and generate profit while considering target market and competitor pricing.
39
What is a premium pricing strategy?
Setting prices high to reflect the quality or exclusivity of a product.
40
What additional three elements are included in the marketing mix for service businesses?
* Physical evidence
* People
* Process
41
What is the significance of marketing for not-for-profit organizations?
To generate awareness and donations for their causes.
42
What is the importance of marketing research?
To understand market needs and make informed business decisions.
43
Fill in the blank: The four controllable elements of marketing are Product, Price, Place, and _______.
Promotion
44
True or False: A pull strategy focuses on promotion as the major element of the marketing strategy.
True
45
True or False: The core product is the tangible product itself.
False
## Footnote
The core product refers to the basic benefit that a customer is buying.
46
What was the initial perception of Twitter's business model?
It seemed like a bad idea, essentially creating a rudimentary version of Facebook.
47
What is marketing research?
Information collected about the marketing mix and the market as a whole.
48
What are the components of the marketing mix in marketing research?
* Product
* Price
* Promotion
* Place
49
What is secondary research?
Data that already exists and is often the first step in the research process.
50
Name three sources of secondary research data.
* Trade associations
* Industry magazines
* Public records
51
What is primary research?
Actively gathering the required data, often expensive.
52
List three methods of collecting primary research data.
* Interviews
* Questionnaires
* Focus groups
53
What are the two types of data in marketing research?
* Qualitative
* Quantitative
54
What is market segmentation?
Dividing the market into groups of buyers with similar needs.
55
What are the four characteristics to consider when segmenting markets?
* Relevance to the product
* Size of the segment
* Accessibility
* Actionability
56
What is demographic segmentation?
Segmenting the market based on measurable characteristics.
57
Give two examples of demographic segmentation criteria.
* Age
* Household income
58
What is psychographic segmentation?
Segmenting based on shared interests, beliefs, and traits of customers.
59
What is targeting in marketing?
Deciding which specific market segments to serve.
60
What is market positioning?
Deciding how to gain a competitive advantage.
61
What are the four market positioning strategies?
* Market leader
* Market challenger
* Market follower
* Market niche strategy
62
True or False: Market leaders need to innovate frequently to maintain their position.
False
63
What is business-to-consumer (B2C) marketing?
Marketing products directly to consumers.
64
What is business-to-business (B2B) marketing?
Selling products directly to businesses.
65
What is business-to-government (B2G) marketing?
Selling products to government entities.
66
How has technology changed market research?
It allows for easier gathering of data from various sources.
67
What is big data in relation to marketing?
Collecting vital information from social media and other sources to understand trends.
68
Name one way big data can be used in marketing.
* Predicting customer demand
69
Fill in the blank: Secondary research is often the _______ step in the research process.
first
70
What is the purpose of monitoring multi-channel transactions?
To create a better idea of product performance across channels.
71
How can big data improve customer experience?
By showing preferred methods of purchase and product combinations.
72
What is an example of a niche market strategy in the smartphone market?
Blackberry focusing on mobile phones for business users.
73
What is the primary function of big data in identifying new customers?
Big data keeps track of customers' behaviours and preferences in real time and uses demographics to identify potential customers.
## Footnote
It can also help discover new niche markets by grouping people based on behaviours and interests.
74
What is the product life cycle?
The product life cycle refers to the stages a product goes through from development to decline, including introduction, growth, maturity, and decline.
## Footnote
This concept can be applied to both individual products and entire industries.
75
What are the stages of product development?
The stages are:
* Idea generation
* Screening
* Idea testing
* Business analysis
* Beta testing and market testing
* Technical implementation
* Commercialisation
* Product and pricing review
## Footnote
Stages 7 and 8 merge into the product life cycle.
76
What pricing strategy is often used during the introduction stage of a product's life cycle?
Price skimming
## Footnote
This strategy involves charging a high initial price to capitalize on early adopters.
77
What is the market penetration strategy in the growth stage?
The market penetration strategy involves lowering prices and increasing marketing to win market share.
## Footnote
This helps avoid being one of the losers during the shake-out phase.
78
What occurs during the shake-out phase of the growth stage?
The least successful entrants pull out of the market due to lack of profitability or are purchased by larger competitors.
## Footnote
This phase often leads to increased competition.
79
What is the consolidation strategy used in the maturity stage?
The consolidation strategy involves differentiating products and developing strong brands to maintain market position.
## Footnote
Pricing should remain competitive yet profitable.
80
What strategies can be employed during the decline stage of a product's life cycle?
Strategies include:
* Niche
* Harvest
* Divest
## Footnote
These strategies address the diminishing sales of products.
81
What are the limitations of the product life cycle model?
Very few products follow a prescriptive cycle; the length of each stage varies and can be influenced by strategic decisions.
## Footnote
For example, price-cutting can lengthen the maturity phase.
82
How can blockchain be used in product life cycle analysis?
Blockchain allows for accurate recording of all elements of a product over its entire life cycle, providing insights on costs, revenues, and inventory levels.
## Footnote
This helps organizations track product performance and make informed decisions.
83
What role does the Internet of Things (IoT) play in product life cycle analysis?
The IoT can provide data about maintenance and servicing issues, feedback on customer usage, and monitor product performance.
## Footnote
This data helps manufacturers improve products and customer satisfaction.
84
What is the BCG Matrix?
The BCG Matrix is a tool used to chart business units or products based on their relative market shares and growth rates.
## Footnote
It categorizes products into four types for strategic management.
85
What are the two parameters used to classify products in the BCG Matrix?
The two parameters are:
* Market growth
* Market share
## Footnote
High market growth indicates future potential, while high market share suggests competitive advantage.
86
What is a cash cow in the BCG Matrix?
A cash cow is a product with high market share in a slow-growing industry, generating significant returns.
## Footnote
These returns can fund the development of other products.
87
What defines a problem child (or question mark) in the BCG Matrix?
A problem child is a product with high growth but low market share, indicating potential but needing strategies to increase market share.
## Footnote
The goal is to turn problem children into stars.
88
What characterizes a star product in the BCG Matrix?
A star product has high market share and is growing, requiring continued investment to maintain its leading position.
## Footnote
Stars benefit from brand recognition and economies of scale.
89
What are dogs in the BCG Matrix?
Dogs are low market share, low growth products with little long-term potential, often unsuitable for significant investment.
## Footnote
Some may be retained for brand loyalty or as loss leaders.
90
What is the purpose of plotting products on the BCG Matrix?
To visualize the balance of products in the portfolio and support strategic decisions regarding product management.
## Footnote
This helps organizations allocate resources effectively.
91
What is a cash dog in product portfolio management?
A product that generates steady profits but has low growth potential
## Footnote
Examples include mature products like red-label Coca-Cola, which may be retained for their profitability.
92
What does a product portfolio matrix help organizations to do?
Visualize the balance of its products to support strategic decisions
## Footnote
The matrix plots products based on their sales and growth potential.
93
What are the four categories typically represented in a product portfolio matrix?
* Stars
* Cash Cows
* Question Marks
* Dogs
## Footnote
These categories help in identifying the strategic position of products.
94
What challenge might an organization face if it has many fast-growing products?
Lack of funds to support growth
## Footnote
Growing products require investment, which may not be available without cash cows.
95
What is the significance of the 'golden goose' metaphor in business?
Represents a valuable asset that should be nurtured for cash flow generation
## Footnote
Understanding and managing this asset can lead to significant financial benefits.
96
What is the first stage of the five-step project management process?
Initiation
## Footnote
This stage involves conceiving the project and setting its purpose.
97
What is included in the feasibility study of a project?
* Business needs
* Economic analysis
* Social/Operational fit
* Technical feasibility
* Environmental impact
## Footnote
The feasibility study aims to prevent unfeasible projects from wasting resources.
98
What financial costs are associated with a project?
* Capital costs
* Finance costs
* Revenue costs
## Footnote
These costs cover asset purchases, financing, and regular operational expenses.
99
What are tangible benefits in a cost-benefit analysis?
Benefits that can be quantified in terms of direct financial impact
## Footnote
An example is the added revenue expected from a new factory.
100
What are intangible benefits?
Benefits that cannot be easily quantified in financial terms
## Footnote
An example is improved reputation from eco-friendly practices.
101
What is the purpose of a business case in project management?
Summarize the feasibility study results for authorization by the project sponsor
## Footnote
It is essential for gaining approval for project initiation.
102
What is the second stage of the five-step project management process?
Planning
## Footnote
This stage involves detailed project preparation including fact-finding and analysis.
103
What tools are used in the fact-finding stage of project planning?
* Interviews
* Questionnaires
* Research
## Footnote
These tools help clarify project details and client expectations.
104
What does a SWOT analysis examine in project planning?
* Strengths
* Weaknesses
* Opportunities
* Threats
## Footnote
This analysis helps identify internal and external factors that affect the project.
105
What is options generation in the context of project planning?
Outlining possible approaches to achieve project objectives
## Footnote
For example, different software solutions for an IT project.
106
What is the first step in project management after options evaluation?
Task planning
## Footnote
This involves defining the project plan, possibly using tools like Gantt or Network charts.
107
What is updated during the justification and agreement stage of project management?
Costs vs benefits in the business case
## Footnote
Final agreement to proceed is obtained from the project sponsor.
108
What does the project plan describe?
Overall plan for the project and smaller plans for different areas
## Footnote
Each part of the project has its own specific plan.
109
What occurs during the execution stage of project management?
Work on the project is carried out
## Footnote
This phase can last weeks, months, or years.
110
What are the two main components of the monitoring and control stage?
Monitor and review, Change control
## Footnote
These components ensure that the project stays on track and adapts to changes.
111
True or False: Change management processes are only needed in experienced project management.
False
## Footnote
Change management processes are essential regardless of the experience level of the project manager.
112
Fill in the blank: A ‘change management process’ is created to control any _______ changes that could disrupt the project.
internal or external
## Footnote
This process helps manage unexpected events effectively.
113
What unexpected issue did Vladimir encounter in his project?
Archaeological remains discovered during construction
## Footnote
This necessitated a change in the project's execution.
114
What question should be assessed regarding project changes?
Are the changes to the project plan a priority and to what extent?
## Footnote
This helps determine the necessity of the changes.
115
Who is responsible for authorizing changes in a project?
Management or designated authorities
## Footnote
A clear hierarchy for authorizing changes is essential.
116
How should changes be recorded in a project?
Agreed procedure outlining how changes will be recorded
## Footnote
The person responsible for recording changes must be designated.
117
What is included in the change management process regarding communication?
How changes will be communicated to relevant stakeholders
## Footnote
Regular updates are crucial for transparency.
118
What does the closing stage of project management involve?
Completion, Handover, Review, Feedback
## Footnote
These tasks ensure the project is formally concluded and lessons are documented.
119
What is a post implementation review?
Review of the project and its progress
## Footnote
This assesses whether the project achieved its objectives.
