L2: the company and environment

Question 1

Why do companies have a mission and vision statement?

Answer 1

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

Question 2

What are the four devisions of Ansoff’s Matrix?

Answer 2

Market Penetration (existing product, exisiting market)
Market Development (existing product, new market)
Product development (New product, exisiting market)
Diversification (new product, new market)

Question 3

What is market penetration?

Answer 3

sell exisiting products on existing market (enlargen your share of the market)

Question 4

What is Market development?

Answer 4

Sell an existing product to a new market

–> pepsi –> pepsi max (tp target woman)

Question 5

What is product development?

Answer 5

Create a new product and offer on an exisiting market (pepsi max - pepsi max cherry)

Question 6

What is diversification?

Answer 6

New markets for new products

pepsi introducing lays

Question 7

`What is the microenvironment?

Answer 7

The internal environment of the company, where you have a direct influence.
Suppliers, competitors, customers etc.

Question 8

What are the different levels of competition?

Answer 8

1. Product form/type
2. Product class/category
3. Generic competition
4. Budget/competition idustry

Question 9

What is the macro environment?

Answer 9

Everything what happendsin the outside environment of the company;
Demographic, Economic, Natural, Technological, Politcal, Cultural

Question 10

What are Porter’s 5 forces?

Answer 10

treat of new entrants
bargaining power of suppliers
bargaining powerr of buyers
threat of substiture products/services
rivalry among exsiting competitors

Question 11

Where can the SWOT analysis be used for?

Answer 11

A bird’s eye view on the internal and external environment

Question 12

What is tje SWOT analysis

Answer 12

Strengths - Internal
Weaknessses - Internal
Opportunities - external
Treats - externa;

Question 13

What tools can be used to analyse the external market environment?

Answer 13

PESTLE

Porter’s 5 forces

Question 14

What tool can be used to determine the growth share (offering level)

Answer 14

BCG Matrix

Question 15

What is the PESTLE anaylsis?

Answer 15

An evaluation of the environment (macro) by looking at the following aspects;
P olitical
E conomic
S ocialogical
T echnological
L egal
E nvironmental

Question 16

What is the BCG matrix?

Answer 16

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

Question 17

What are the four categories of the BCG matrix?

Answer 17

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

Question 18

What tool can be used to evaluate customer’s buying behaviour?

Answer 18

Maslow’s pyramid of needs;

1. Physiological needs (hunger, thirst)
2. Saf ety needs (security, protection)
3. Social needs (sense of belonging)
4. Esteem needs (recognition, status)
5. Sald-actualization needs (self-development)

Question 19

What are the three types of growth srategies?

Answer 19

1. Intense growth -> Current products/markets have potential to increase sales (Ansoff’s matrix)
2. Diversified growth -> new prodcts in new markets
3. Integrated growth -> internal growth that can have 3 directions (backwards, forwards, horizontal)

Question 20

What are the three types of diversifications?

Answer 20

1. Horizontal -> New products unrelated to current products introduced on current market
2. Concentric -> New products (related to current markets) introduced to new markets
3. Conglomerate -> new products (unrelated to current products) introduced to new markets

Question 21

What are the three directions of integrated growth?

Answer 21

1. Forward -> increased control on distribution
2. Backward -> Increaed control on supply systems
3. Horizontal -> Increased control on competitors

Question 22

What are the 6 macro forces?

Answer 22

1. Political forces
2. Legal forces -> Legislations
3. Regulaqtory forces -> Government, local authorities
4. Societal forces -> individuals/groups that pressure marketeers to provide high living standards and enjoyable lifestyles through socially responsible decisions and activities
5. Technological forces -> changes the way how customers satisfy their psychological needs
6. Economic and competitive forces

Question 23

What is disposable and discretionary income?

Answer 23

Disposable -> after-tax income

Discretionary -> after-tax income, after purchasing of necessities

Question 24

What are the 4 major psychological factors that influence buying behaviour?

Answer 24

1. Motivation = the need
2. Perception = Process by which people select and interpret information to form a picture of the world
3. Learning = Changes in an individual’s behavior arising from experience
4. Beliefs and attitudes = Thoughts and evaluation/feelings towards an object/idea

Question 25

What are the four types of buying behaviour?

Answer 25

1. complex buying behaviour -> Learning process to do a thoughtful purchase
2. Variety-seeking buying behaviour -> low involvement, but see differences in brands
3. Dissonance-reducing buying behavior -> high involvement do not see differences between brands
4. Habitual buying behavior = low involvement and do not see differences in brands

Question 26

What are the steps of the buying decision-making process?

Answer 26

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

Question 27

What are the different product adopter categories?

Answer 27

1. Innovators -> First people to adopt a product
2. Early adopters
3. Early majority -> Prior to average
4. Late majority
5. Laggards -> last people to adopt