L2: the company and environment Flashcards
Why do companies have a mission and vision statement?
To help and guide the different departments in a company
- mission and vision should be broad
- without the mission/vision how will the company develop its offerings to the customer? –> ship without destination
What are the four devisions of Ansoff’s Matrix?
Market Penetration (existing product, exisiting market) Market Development (existing product, new market) Product development (New product, exisiting market) Diversification (new product, new market)
What is market penetration?
sell exisiting products on existing market (enlargen your share of the market)
What is Market development?
Sell an existing product to a new market
–> pepsi –> pepsi max (tp target woman)
What is product development?
Create a new product and offer on an exisiting market (pepsi max - pepsi max cherry)
What is diversification?
New markets for new products
pepsi introducing lays
`What is the microenvironment?
The internal environment of the company, where you have a direct influence.
Suppliers, competitors, customers etc.
What are the different levels of competition?
- Product form/type
- Product class/category
- Generic competition
- Budget/competition idustry
What is the macro environment?
Everything what happendsin the outside environment of the company;
Demographic, Economic, Natural, Technological, Politcal, Cultural
What are Porter’s 5 forces?
treat of new entrants bargaining power of suppliers bargaining powerr of buyers threat of substiture products/services rivalry among exsiting competitors
Where can the SWOT analysis be used for?
A bird’s eye view on the internal and external environment
What is tje SWOT analysis
Strengths - Internal
Weaknessses - Internal
Opportunities - external
Treats - externa;
What tools can be used to analyse the external market environment?
PESTLE
Porter’s 5 forces
What tool can be used to determine the growth share (offering level)
BCG Matrix
What is the PESTLE anaylsis?
An evaluation of the environment (macro) by looking at the following aspects; P olitical E conomic S ocialogical T echnological L egal E nvironmental
What is the BCG matrix?
A matrix where 2 factors are being measured; Market grwoth rate and relative market share.
The products/services of a company are being measured and put into the matrix accordingly
What are the four categories of the BCG matrix?
Low market grow, High market share –> Cash cow
High market grow, Hich market share –> Star
High market grow, low market share –> Question mark
Low market grow, low market share –> dog
What tool can be used to evaluate customer’s buying behaviour?
Maslow’s pyramid of needs;
- Physiological needs (hunger, thirst)
- Saf ety needs (security, protection)
- Social needs (sense of belonging)
- Esteem needs (recognition, status)
- Sald-actualization needs (self-development)
What are the three types of growth srategies?
- Intense growth -> Current products/markets have potential to increase sales (Ansoff’s matrix)
- Diversified growth -> new prodcts in new markets
- Integrated growth -> internal growth that can have 3 directions (backwards, forwards, horizontal)
What are the three types of diversifications?
- Horizontal -> New products unrelated to current products introduced on current market
- Concentric -> New products (related to current markets) introduced to new markets
- Conglomerate -> new products (unrelated to current products) introduced to new markets
What are the three directions of integrated growth?
- Forward -> increased control on distribution
- Backward -> Increaed control on supply systems
- Horizontal -> Increased control on competitors
What are the 6 macro forces?
- Political forces
- Legal forces -> Legislations
- Regulaqtory forces -> Government, local authorities
- Societal forces -> individuals/groups that pressure marketeers to provide high living standards and enjoyable lifestyles through socially responsible decisions and activities
- Technological forces -> changes the way how customers satisfy their psychological needs
- Economic and competitive forces
What is disposable and discretionary income?
Disposable -> after-tax income
Discretionary -> after-tax income, after purchasing of necessities
What are the 4 major psychological factors that influence buying behaviour?
- Motivation = the need
- Perception = Process by which people select and interpret information to form a picture of the world
- Learning = Changes in an individual’s behavior arising from experience
- Beliefs and attitudes = Thoughts and evaluation/feelings towards an object/idea
What are the four types of buying behaviour?
- complex buying behaviour -> Learning process to do a thoughtful purchase
- Variety-seeking buying behaviour -> low involvement, but see differences in brands
- Dissonance-reducing buying behavior -> high involvement do not see differences between brands
- Habitual buying behavior = low involvement and do not see differences in brands
What are the steps of the buying decision-making process?
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase behavior
What are the different product adopter categories?
- Innovators -> First people to adopt a product
- Early adopters
- Early majority -> Prior to average
- Late majority
- Laggards -> last people to adopt
