Marketing Strategies Flashcards
Marketing Definition
The management process that allows firms to identify, anticipate and fulfil customer needs profitably.
Corporate Objective
How it affects marketing objective - Long term growth vs Short term profitability
Operational Issues
Capacity utilisation, quality targets, productivity
Finance Issues
Retained earnings, High gearing, Budgets, Investment appraisal.
External Constraints
Growth/decline of a market Competitors actions Technological changes Economic Factors Suppliers
Marketing Model
The procedure where businesses make marketing decisions in a scientific manner. Slow/expensive potential for high reward.
Hunches/Guesswork
Actions based on previous experience and limited research.
Sales Forecasting
The target a firm expects to make in terms of volume/sales. Expensive and the potential for mistakes/changes in the external environment.
Ansoff’s Matrix
To evaluate the potential risks involved in strategic decisions.
Current Market/Existing Product
Market Penetration - Low Risk
New Market/Existing Product
Market Development - Medium Risk
Current Market/New Product
Product Development - Medium Risk
New Market/New Product
Diversification - High Risk
Porters 5 Forces
Analyse the nature of competition within an industry.
Threat of New Entrants
Barriers to entry, relative economies of scale, access to suppliers/ distribution. Removal of market share.
Easy to enter
Common Technology, Access to distribution, Low capital requirements, NO strong brands and NO customer loyalty.
Hard to enter
Established brands, restricted distribution, high capital required, economies of scale for acceptable unit costs.
Bargaining Power of Customer
How much customers can exert pressure on price and quality of a product.
Bargaining Customer Help
Amount of customers and the number of firms supplying,
Bargaining Power of Suppliers
The degree of control of which suppliers have over the buyers.
Bargaining Supplier Help
Few large suppliers, scarce resource required, high cost of switching to alternative, few substitute resources.
Threat of Substitute Products
Produced in a different industry but can satisfy the customer needs.
Threat of Substitute Depends
How the price/performance of substitute can match the product, willingness of customers to switch, ustomer loyalty and switching costs.
Degree of Competitive Rivalry
How relatable products from different firms are in the same industry.