L3, Marketing mix approach Flashcards
Business concept of Ikea?
“Create a better everyday life for the many people”
Our business idea supports this vision by:
— offering a wide range of well-designed, functional home furnishing products
— at prices so low that as many people as possible will be able to afford them
The IKEA concept guide the designs, manufacturing, transport, sales etc.
Why is it important to continuous evaluate and adapt business concepts?
— 10/42 companies changed their business concept during the last three years
— Companies, boards need to transform their business models
why? —> new requirements and needs, the world is changing
— sustainablility
— adapt to new laws
— adapt to different cultures
— financial falls and rices
Business concept of Claes Olsson?
Founders vision:
“ Sell dependable products to low prices and right quality according to the need”
- sell products meeting needs of people in their everyday life
- competitive prices
- retail stores and online
- Provide good product quality according to need and high level of service
Goals for Claes olsson?
Our goal is to develop a strong retail chain with high profitability and increasing shareholder value
More specific goals are set in different categories e.g. financial goals and dustainability goals.
what is a Strategy?
How to work to realize the business concept and fulfill the goals of the business
What questions could be asked to create strategies?
- what customers and market segments are we approaching?
2, why should they buy our offering?
3.what resources are needed? - How will the strategies be implemented in terms of resources needed, product development, management etc.
Strategies if Claes olsson?
E.g:
- strengthen brand
- increase share own branded goods
- motivated employees
- Renew the assortment to X% each year
what are the basis of the process approach?
Includes:
- input
- Process and activities
- output
Describe the marketing process!
Goals- Concept - strategy
Concept:
1. Analysis
Internal analysis
—> skills
—> financial
—> corporate strategy
External analysis —> product life cycle —> environmental climate —> The industry —> the customer —> the market —> distribution structure
- Formulating the marketing goals
— means of reaching the business goals
— e.g. sales volume, market share, communication, brand awareness
3. Design the marketing approach —> product —> price —> place —> promotion
- Realize
- Follow up
What are the 4Ps according to the marketing mix approach?
1. product (offering) —> depend on market segment —> quality —> Design —> feature —> brand —> services —> packages —> variants
2. price —> fit to market segment —> model —> last price —> discounds —> cretits and pay periods
3. promotion (marketing communication) —> where will the customers look for it —> adverticement —>personal selling —> PR —> sales support
4. place (distribution system) —> channels —> coverage —> assortment —> localisation —> inventory —> logistics and transportation
Adapt all to market segment
what is a business concept?
- The business concept is the expression for the commercial base of a firm
- The business concept typically describes how you capture value and your unique selling proposition
Name some aspects of a commercially successful business concept!
- Economically sound
- Competitive
- What needs to be satisfies?
—> customer problems - Who has these needs?
—> who are the customers? - How can we satisfy customer needs compared to alternatives at the market?
—> offering/solution for a customer
What is meant by goals in a company?
The goals are what a company wants to achieve by realizing its business concepts
The goals can be formulated at different levels
- Mission (purpose and long term growth)
- Primary goals (maximum goals)
- Secondary goals ( could be means or restrictions(
General facts about the mixed marketing approach?
- basis in Philip Kotler’s marketing management book
- one go the 50 top business books of all time
- It’s strength lies in that it clearly identifies four issues from the empirical perspective
- Builds on two assumptions on marketing as a resource allocation problem and that there is a linear dependency between resources put into a mean and the outcome
what is a market information system and why is it important?
A marketing information system:
—> continuous need of marketing information
—> data is collected and stores in databases, to be used in decision making
—>external and internal sources
Market information is important for the efficiency of the marketing process
Describe some facts about market research some different types of reseatch!
1, Need of specific information at certain occasion: —> market and economic analysis —> product research —> pricing research —> advertising research —> sales research
what different data could be used in a market research project?
- primary data
—> data collected though survery, observations or experiments - secondary data
—> library
—> government reports
—> SCB
why is market sensing used?
- the process of generating knowledge about the market
- from the customer point of view
- to formulate, test, revise, update and refine their market views
- to guide and inform decision making
describe the different steps of market sensing!
- define the market
- monitor competition
- assess customer value
- gain customer feedback
—> how well has the supplier met the customer requirements
name some different value assessments methods!
- internal engineering assessment
- cooperation with customer
- survey questions
- focus groups
- conjoint analysis
- benchmarks
- compositional approach
- ratings
how can you gain customer feedback?
- translating business issues into projects
- customer value workshops
- customer value research
- constructing a business case for change
- value realisation
what is market sensing?
- The process of generating knowledge about the marketplace that individuals use to inform and guide their decision making.
- A market driven process of learning about the customers and the competitors, resellers and regulatory agencies
- A way to formulate, test, update and refine their market views
4. Includes 4 steps: —> defining the market —> monitoring competition —> assessing value —> gaining customer feedback
Porters framework for competitor analysis?
- Future goals
- assumptions
- current strategy
- capabilities
what is value assessment?
The work process of obtaining an estimate of the worth in monetary terms of a market offering
9 methods to provide estimates of value:
- internal engineering assessment
- field-value-in-use assessment
- indirect survey questions
- focus-group value assessment
- direct survey questions
- conjoint analysis
- benchmarks
- compositional approach
- importance ratings
what is a value model?
Data-based representations of the worth in monetary terms or what a supplier is doing or could do for the defined market segments.
Three kinds of customer feedback?
- customer satisfaction measurement
- return on quality
- customer value analysis
