Level 4 Marketing Executive - Products and Channels Flashcards
What does PESTLE analysis study?
PESTLE analysis studies key external factors influencing an organization.
What is the purpose of PESTLE analysis?
It guides professionals and senior managers in strategic decision-making.
Name the components of PESTLE analysis.
Political, Economic, Sociological, Technological, Legal, and Environmental factors.
What are examples of political factors?
Tax policy, regulations, political stability.
What economic factors does PESTLE analysis consider?
Economic growth/decline, interest rates, unemployment.
What does sociological analysis involve?
Examining cultural norms, health consciousness, demographics.
What is assessed under technological factors?
Emerging technologies and the rate of technological change.
What aspects fall under legal factors?
Legislative changes impacting employment, resources, and taxation.
What environmental factors are considered?
Global warming, sustainability, and pandemics.
What are some advantages of PESTLE analysis?
Simple framework, understanding the wider business environment, encouraging strategic thinking, anticipating threats, exploiting opportunities.
What are potential disadvantages of PESTLE analysis?
Risk of oversimplification, data overload, reliance on assumptions, difficulty in anticipating future changes, and need for regular repetition for effectiveness.
What is Route-to-Market Strategy?
Strategy for distributing products to target customers and achieving business objectives.
Why is Channel Conflict sometimes beneficial?
Maximizes market coverage and sales potential.
What are the phases of Route-to-Market development?
Strategy Development, Channel Planning & Design, Implementation.
Why is investment in Strategy Development essential?
Crucial for long-term success, typically 6-18 months.
Why is Innovation in Route-to-Market important?
Essential for future market success; today’s unique channel is tomorrow’s standard.
How can companies create value through unique channels?
Offer ‘out of the box’ solutions to provide added value to customers.
What are the benefits of a Diagnostic & Strategic Review?
Identifies efficiency, effectiveness, and improvement opportunities in route-to-market.
Key aspects of an Effective Route-to-Market Strategy?
Strong customer focus, aligning strategic goals and capabilities, flexibility to adapt.
How should companies manage Customer Channel Satisfaction?
Provide preferred channels, control costs, offer special treatment to best customers.
Considerations for Economic Viability of Channels?
Balancing premium channels with profitability, ensuring cost-effectiveness while satisfying customer needs.
What is a business model?
A business model is a plan for making profit, involving products, target market, and revenue strategies.
Why are business models important?
Business models attract investment, recruit talent, and adapt to market trends.
What are the components of a business model?
Components include products, target market, and expenses.
What are the key takeaways about business models?
They’re vital for companies, used by investors, and need regular updates.
Name some types of business models.
Types include retailer, manufacturer, subscription, and marketplace.
What are the steps to creating a business model?
Steps involve identifying audience, understanding offerings, finding partners, and testing.
What criticism is there of business models?
Criticisms include incoherent narratives and unprofitable numbers.
What’s the bottom line about business models?
They’re crucial for planning and value creation, outlining operations and revenue.
What are Dogs in the Boston Matrix?
Dogs are low-market-share products in low-growth markets. They yield little profit and require discounts to sell.
Define Cash Cows according to the Boston Matrix.
Cash Cows have high market share in low-growth markets, offering limited growth prospects but consistent profit.
What characterizes Stars in the Boston Matrix?
Stars have high market share in high-growth markets, indicating strong growth potential and promising opportunities.
Explain Question Marks (Problem Children) in the Boston Matrix.
Question Marks have low market share in high-growth markets. They can evolve into Stars or Cash Cows but may require significant effort for uncertain returns.
How is market share defined, and why is it significant in the Boston Matrix?
Market share is the portion of the total market served by a product or business. Higher market share is often linked to higher profitability, a key assumption in the Boston Matrix.
What role does market growth play in the Boston Matrix?
Market growth signifies a market’s attractiveness. High-growth markets offer profit opportunities even with stable market share, while low-growth markets pose challenges like intense competition and the need for aggressive pricing to maintain share.
What is advertising?
Paid communication promoting ideas, goods, services, or sponsors through media like TV, radio, newspapers, and the internet.
Advantages and disadvantages of advertising?
Pros: Builds credibility, repeats messages strategically, generates interest, and fosters brand connections. Cons: High costs, difficulty reaching target audiences effectively, limited direct consumer interaction.
What is direct marketing?
Personalized communication directly with consumers, bypassing intermediaries, including direct mail, telemarketing, and digital marketing.
Advantages and disadvantages of direct marketing?
Pros: Tailored experiences for consumers, insights into customer needs. Cons: Privacy concerns, message saturation, challenges in maintaining updated databases.
What is personal selling?
In-person interactions between sales representatives and customers to sell products or services, fostering relationships and gathering feedback.
Advantages and disadvantages of personal selling?
Pros: Flexibility in tailoring presentations, addressing customer objections. Cons: High costs, potential message inconsistency.
What are sales promotions?
Short-term efforts like special offers, demonstrations, and contests directed at consumers, retailers, or the manufacturer’s sales force.
Advantages and disadvantages of sales promotions?
Pros: Boosts short-term sales, gains insights into price sensitivity, builds customer loyalty. Cons: Risks of brand dilution, short-term focus, over-reliance on promotions.
What is digital marketing?
Using digital tools like email, websites, content marketing, social media, and mobile marketing to promote products, services, or brands.
Advantages and disadvantages of digital marketing?
Pros: Global reach, cost-effectiveness, two-way communication. Cons: Initial setup costs, data security concerns, challenges in maintaining engagement and crisis management.
What are public relations?
Maintaining a favourable image and building beneficial relationships between an organization and the public through earned attention rather than paid messages.
Advantages and disadvantages of public relations?
Pros: Credibility from earned attention. Cons: Less control over messaging, difficulty in measuring effectiveness compared to advertising.
GDPR Principles?
The Seven Principles
Lawfulness, fairness and transparency.
Purpose limitation.
Data minimisation.
Accuracy.
Storage limitation.
Integrity and confidentiality (security)
Accountability.
