Introduction Flashcards
What is Competitive Advantage?
A condition that allows a company to perform better than its competitors.
Competitive advantage can arise from various factors such as cost structure, product offerings, and customer service.
What is the purpose of a marketing strategy and planning?
To determine in which markets a company’s resources will be most effective in implementing the marketing concept.
This involves assessing market opportunities and aligning resources accordingly.
What are the two kinds of top management decisions in marketing?
- Corporate marketing planning
- Product mix strategy
These decisions guide the overall direction and resource allocation of marketing efforts.
What does corporate marketing planning involve?
The process by which an organization sets its long-term priorities regarding products and markets.
It shapes the strategic vision of the organization.
What is product mix strategy?
Provides clear guidance to middle managers about top management’s expectations.
It outlines how resources should be allocated across different products.
What are the two considerations specified in a corporate strategy?
- The range of market to be served
- The kinds of products to be offered
These considerations help define the scope and focus of the organization’s efforts.
List the 6 major environmental forces that can impact marketing.
- Demographics
- Social and Cultural Values
- Economic Factors
- Technology
- Legal and Regulatory Action
- Competition
These forces shape market dynamics and consumer behavior.
What demographic factors are considered in environmental analysis?
- Age
- Distribution of the population
- Birthrates
- Population growth
- Regional population shifts
- Percentage of two-worker households
Understanding demographics helps in targeting specific market segments.
What social and cultural values are relevant to marketing?
- Attitudes towards health and nutrition
- The need for self-expression
- Materialism
- Ecological concerns
- Product safety
These values influence consumer preferences and purchasing decisions.
What economic factors should be considered in marketing?
- Inflation
- Unemployment rates
- Economic growth
- Raw material scarcities
- Energy costs
- Interest rates
- Import duties
- Excise tax
Economic conditions directly affect consumer spending and business operations.
What does the technology environmental force refer to?
Developing and anticipated changes that affect the kinds of products available.
Technological advancements can create new market opportunities and disrupt existing ones.
Resources and Competencies includes:
*Financial Resources
*Labor and Managerial Skills
*Production Capacity and Efficient Equipment
*Research and Development Skills and Patent
*Control over key raw materials
*Suze and expertise of the sales force
*Efficient of effective distribution channels and systems
Identity of the competitors and the type of focus of competition may change because of:
*entry of new firm (especially foreign)
*acquisition of small competitor by a large and well-financed organization
*Deregulation, changing economic conditions or new production process that foster increased price competition
*Changing social and cultural values or new technology
The firm’s strongest competencies
Core Competencies
Involve exhange of one or more resources
Strategic Alliances
