Marketing Flashcards
1
Q
Porter’s 5 Forces
A
- Threat of new entrants
- Intensity of rivalry among existing competitors
- Pressure from substitute items
- Bargaining power of buyers
- Bargaining power of suppliers
2
Q
Barriers of entry
A
- economies of scale
- capital requirements
- switching costs
- access to distribution channels
- product differentiation
- Proprietary product technology
3
Q
Cut Costs with LABOR
A
- Cross-train workers
- Cut overtime
- Reduce employer 401k or match
- Raise employee contribution to healthcare
- Institute four 10 hr days instead of 5 8 hr days
- Convert workers into owners - they will work longer/harder
- Contemplate layoffs
- Pay decreases across the board
4
Q
Cut Costs with PRODUCTION
A
- Invest in technology
- Consolidate production space to gain scale and create accountability
- Create flexible production lines
- Reduce inventories (JIT)
- Outsource
- Renegotiate with suppliers
- Consolidate suppliers
- Import parts
5
Q
Cut Costs with FINANCE
A
- Have customers pay sooner
- Refinance your debt
- Sell nonessential assets
- Hedge currency rates
- Redesign health insurance
6
Q
If sales are declining, analyze…
A
- Declining market demand
- Is market mature or your product obsolete?
- Loss of share due to substitution (VHS rentals to streaming, PPV)
7
Q
Profits declining due to drop in revenue…
A
focus on marketing and distribution issues
8
Q
Profits declining but revenue up…
A
- changes in costs
- additional expenses
- Changes in prices
- Product mix
- Changes in customers’ needs
9
Q
Product is emerging, growth, mature, decline
A
- Emerging: focus on R&D, competition, price
- Growth: marketing & competition
- Mature: MFG, costs, competition
- Decline: define niche market, competition, or exit strategy
10
Q
Three conditions for price stability
A
- growth rate for all competitors equal
- Prices parallel costs
- Prices of competitors are equal
