Marketing And business Strategy Flashcards
1
Q
Kotler-importance of mkt:
A
Getting the right product to the customer at the right price and at the right time.
2
Q
Strategic mkt Vs Tactical mkt
A
- Strategic-tied in with corporate strategy by identifying which products and markets the company wishes to operate in(eg waitrose in a new wealthy area)
- Tactical -focused on short term ànd on particular elements of mkt mix
3
Q
Role of Mkt: (Pg 296 nb)
A
Marketing :
- Identify
- Anticipate
- Supply
satisfactions (customer needs+orgs obj) to facilitate mutually beneficial exchanges.
4
Q
Brassington and Pettit-Marketing concept:
A
A belief system.
It can be incorporated into the culture of the org.
Culture involves beliefs and patterns of behaviour.
Customer oriented-often found in mission statement-little basis .
Real customer focused-seeks out gaps in the market-produces products where the org or the competitors fail to meer customers needs.
5
Q
Brassington and Pettit-
Marketing orientation VS product orientation
A
- Product orientation-max quality ,min cost.Main task of Mgt is to pursue :improved production and distribution efficiency .
- Mkt orientation:approach to business that centres its activities on satisfying the needs and wants of its customers-actual practices.
6
Q
Mkt orientation vs Product orientation
A
-
Mkt orientation
1. Determine customer needs
2. Invest resources
3. Make product
4. Market the product
5. Market feedback -
Production orientation
1. Determine whether goods can be made/serv delivered
2. Invest resources
3. Make product
4. Sell the product
7
Q
Sales orientation
A
- Make the product and actively and agressively sell it.
- Good sales force can sell anything to anybody.
8
Q
Pull Vs Push Mkt:
A
- Push-goods are pushed to resellers and consumers.Product promotion is by the final seller in the value chain .
- Pull-produce a product that consumer s demand will pull into retail outlets.Promotion between manufact and final seller.
9
Q
3 dimensions of Mkt:
A
- culture-focus on customer
- Strategy- markets and products
- Tactics -7ps of mkt mix
10
Q
Mkt environment-factors on performance of the business(3).
A
- Macro environment(pestel)-out’of org s control
- Micro environment-factors specifically related to the org such us suppliers and customers.
- Internal environment-factors within the org ( assets ,empl,finance)
11
Q
Pestel factors -impact markets and customers.
A
POLITICAL(change gvt/policies-instability)➡️consumer s conf/buying pow/rights)
ECONOMIC (gdp, inflation,interest rates,exchange rates,prosperity to save)➡️uncertainty more saving than buying
SOCIAL/CULTURAL(values/beliefs
/composition of population)➡️demographic factors-purchasingnpower/products-high status@culture important acceptance for mkt messages)
TECHNOLOGICAL(products processes working methods ways of distrib,communication methods)
ECOLOGICAL(organic prod/disasters)
LEGAL FACTOrs-customer s rights
12
Q
Using a Swot analysis-2 ways
A
- Develop resource based strategies-enable company to extend use of strengths (common in retailing)
- Develop positioning based strategies-identify available opportunities and what the firm has to do to exploit them
13
Q
Relation of coorporate planning-mkt strategy pg 198 ob
A
- set objectives {org as a whole vs products and market}
- Internal appraisal(strengths and weeknesses) [effectiveness of different aspects of org vs mkt audit]
- External appraisal(opp threats) {peste factors vs environmental factors affect consumers markt products}
- Gaps(desired obj-forecastvs less well in particular markets focus on growth)
- Strategy-{diversifying enrering new markeys VS resources allocation and identification ,target market,customer needs products ,match products with customers}
- Implementation [delegate to dpts vs Action eg advert space]
- Control{review results and act vs market obj achieved?}
14
Q
Mkt definition-chartered institute of Mkt
A
- Management process which Identifies anticipates and supplies Customer requirements efficiently and profitably
(Wide scope-stresses customer satisfaction)
15
Q
Kotler-Mktg Plan
A
It must be consistent with the corporate strategy :
- Executive summary (main goals -recommendations)
- Situation analysis-(Swot anal and forecasts)
- Objectives and goals(what it needs to achieve in terms of market share)
- Mkt startegy(target markets,mkt mix,mkt exp) 5.Strategic mkt plan(3-5 y or more/scope of product and market activ,match activ to distinctive competences of the org)
- Tactical Mkt plan(1y ,existing mark -prod,mkt mix issues)
- Action plan-how the strategies are to be achieved 8.Budgets
- Controls-progress of the plan and the budget
16
Q
Marketing elements and corporate planning elements (pg 304 nb) -cycle
A
@Corporate startegy -elements
- competitive environment-int and ext factors 2.mission
- coorporate objectives
- startegy dvt/market specific strat/resourc allocation *position audit
@Mkt strategy
- Mkt objectives
- Mkt mix @ Mkt expenditure
- Tactical implementation
- sales Obj-sales force strat-tact implement 6.Advertising obj-adv str-Tact implem *Mkt audit
17
Q
What is market research?
A
Process of :
- gathering,
- recording,
- analysing
- reporting data and info related to company s market,customers and competitors.
Typically used to: Determine the characteristics of markets,suggest opportunities for products and selling approaches and suggest segments.
18
Q
Market research plan-steps
A
- Defining the issue (Eg explain fall in sales,potential demand for product,attitudes to the brand,consumer needs)
- Developing hypothesis to be tested and the purpose of the research.
- Collecting data
- Analyse and interpret data
- Report the findings
19
Q
Secondary data
A
- Not for a specific research purpose-
- cheaper to collect
- guide primary research
SOURCES
- Internal:
- existing IS
- accounting data
- customer databases
- data produced by other dpts
2.External:
- Published statistics from government-
- review of journals-
- by market research agencies
20
Q
Primary data
A
- Questionnaires
- Experiment (beta,samples)
- Observation
- Unstructured interviews
- Depth interviews(attitudes and motives unconscious)
- Projective techniques(unconscious motives-inkblot test -word association-thematic apperception tests)
- Focus groups
(He questioned the unstructured experiment by observing in depth with projective focus.)
21
Q
Forecasting Current demand-factors
A
- Total market potential
- Area Market potential
- Total industry sales
- Relative market shares
22
Q
Forecasting sales(income) demand (step by step):
A
- Macroeconomic forecast
- industry sales forecast(based on 1)
- company sales forecast-expectations on market share
- Demand forecast based on 3 types of info:
- customers doing in the market (industry +company sales data)
- customers intentions(surveys ect)
- past sales analysis
5.Income forecast(based on info above)
23
Q
Intentions of customers,how do we find out?
A
- Market tests
- Survey of buyers intentions
- Sales force opinions(might forecast low sales to lower their targets in cotrast to mkt execs)
- Expert opinions
24
Q
Past sales analysis
A
- trends
- seasonal or cyclical factors patterns
- likely competitor activity
- sales and mkt campaigns
25
**Sales** potential
1. **essentiality**
2. overall mkt **size**
3. **competition**
4. **delay** purchasing(luxury items)
5. **price**
6. **promotional** expenditure(broaden the mkt)
26
Market segmentation-definition ,reason:
**Reason** Market-potential buyers with **different** needs and different buying behaviours.
**Definition** market segmentation-
* subdividing the market Into **distinct** **and** **homogeneous** **subgroups** of customers where any subgroup can be selected as a **target market** to be met with a **distinct mkt mix.**
27
Bases for segmentation:
* Sometimes 2 or more bases may be used
* One segmentation variable superior to another
* Simple segmentation:
1. **A**ge
2. **G**ender
3. **E**thnicity
4. Nationality
5. Religion
6. Geographical area
7. Education
8. Occupation
9. End use(work or leisure)
10. Level of income
11. Social class
12. Buyer behaviour 13.Lifestyle(motivation,culture,personality)
28
Lifestyle categories:
1. **Upwordly** mobile-**ambitious**(affluent lifestyle,more interesting job,higher material standards,will try new products)
2. **Traditional** and **sociable** (conformity to group norms -social approval and reassurance)
3. **Security** and status seeking(status -income-security-strong and well known brands)
4. **Hedonistic** preference(now better than future)
29
Segment **validity**-is it worth designing and developing a unique mkt mix?
General rule: **substantial accessible** **measurable**
1. Can the segment be **measured**?(by market research-eg conservatism?)
2. Is the segment **big** enough?
3. Can it be **reached**?(via promotion and distrib channels)
4. Do segments **respond** differently?
5. Can the segment be reached **profitably**? (Needs cost less than cost to satisfy)
6. Is it **suitably** stable?
30
**Benefits** of market segmentation:
1. New **mkt opportunities**-better understanding of customer needs
2. **Specialists** can be used for major segments (Effective mkt systems)
3. **Optimised** **ROI**-total mkt budget allocated proportionally to the likely return
4. Small **adjustments** to **products** and **promotional** aspects(efficient use of resources)
5. **Dominate** particular segments-comp advant
6. **Product** **range**-reflect differences in customer needs
(A **specialist** **product** **range** with **small** **adj** and **promo** ,**Dominated** with **Optimised** **Roi** bringing new **market** **opportunities**)
31
Target markets-policy options
1. **Mass** -single product-ignore segmentation(cost leaders,differentiation strategy with a single market)
2. **Concentrated** mkt-ideal product for a single sengment-a focus strategy by cost or differant)
3. **Differentiated** mkt-several product versions at different market segment(-mkt and production costs-multi focus strategy)
32
Positioning-definition-positioning variables
**Definition**: how customers **perceive** a brand or product relative to other brands or products. Companies want to achieve a clear u**nique positive position**(cheapest supermarket ).
* products similar-key is distinction in customer s mind
* positioned in relation to competing products and companies.
* People remember number 1-product should be positioned as number 1 in relation to a positioning variable:
1. **A**ttributes(size)
2. **q**uality/price
3. **u**ser
4. **a**pplication/use
5. **b**enefits
6. **p**roduct category
7. **i**mage
33
**Developments** in market **segmentation** and product **positioning**:
1. growing awareness that users should be segmented according to **purpose** of segmentation.
2. growing interest in customer **database** **analysis**-data mining
3. growing Emphasis on segm by **soft data** (Attitudes and needs and lifestyles)
4. **sub** **segmentation** or **hybrid** segmentation
5. **Computer** **models** are used-discover suitable **additions** to a **product** line
34
**Ansoff** matrix-risks attached to each strategy:
1. Market **penetration** -Increase sales in exising prod in Existing markets
2. Market **development**-Expansion in to new markets using existing products
3. **Product** dvt-redesign /repositioning or introduction of completely new ones in existing markets
4. **Diversification**-New products in new markets
35
What is Marketing?
Is the **process** of planning and executing the concepts of **pricing**,**promotion**,**distribution** of :
* ideas
* goods
* services
in order to **satisfy** ind and org objectives.
36
**Industrial** segmentation
1. **L**ocation
2. **O**rdering characteristics(frequency,size)
3. **C**ompany characteristics(type,marker,size)
4. **E**xpectations(reliability,quality ect)
37
Porter's potential **positioning** strategies:
1. **Cost** **leadership** : Low cost ,broad market
2. **Differentiation**: High cost,broad market
3. **Cost** **focus:** Narrow target,low cost
4. **Differentiation** **focus**: Narrow target,High cost
38
Perceptual mapping( pg 316 nb)-what does it involve?
* Using customers **perception** of brands to map out how the market is currently serviced.
* Any **gaps** in the market could be used to deploy new products or reposition existing ones.
* Critical **success** **factors** :price and quality
