Marketing strategy & Marketing research & segmentation Flashcards
What different types of strategies are there? (P´s)
Strategy as a ……
Plan - a direction, a guide from where it is now to where it wants to be. Intended strategy
Pattern - consistency in behavior over time, realized strategy
Position - establishing a position in the market that is both unique and valued by customers
Perspective - fundamental way of doing things
Ploy - clever maneuvers
What are some different approaches to strategy?
Rational planning approach proposes that good strategy results from a systematic, planned approach to strategy development
Resource-based approach focuses on key internal resources of the firm as the source of enduring competitive advantage
Relationship and networks view of strategy contents that network positional resources are the key to success in business markets
What is the overall aim in business strategy?
Is to increase long-term shareholder value (in profit-seeking firms)
Understand analyze and deliver customer value
Explain the “sellers as a problem solver in busines markets” concept
Buying company has a problem
Selling company offering a solution, giving value
Focus on the buyers context, needs problems opportunities
The suppliers offering: Must be perceived as a solution to the buyers problems or unrealized opportunities
The offering will be demanded: When the buyer perceives the benefits of the offering greater thatn the sacrifices = VALUE
What is customer value defined as?
The trade-off between what a customer has to give up and what the customer receives in a business transaction or relationship
Explain the “three” main relationship types in purchases
Transactional relationships
Timely exchange, basic products, competitive prices
Each transaction is evaluated in isolation
Value adding exchange
Between the other two
Selling moves from simple selling to customer retention
Collaborative relationships
Process, strong bonds are created, mutual benefits
Effectiveness of a series of transactions
Define relationship value
Creation of value for both supplier and customer, key goals for all business relationships.
There is a value in the relationship that goes beyond the direct value of the product
What are som ethical approaches for marketing strategy to keep in mind?
Managerial egoism: What is best for the company?
Utilitarianism: Evaluating the costs and benefits to all stakehoders (based on consequenses)
Deontological approach: Follow codes of conduct (based on rules)
Virtue ethics: Learning and applying sound judgement based on integrity
Explain the differences between internal and external when analyzing the conditions for realizing the business concept
External analysis:
The customer
The industry
Distribution structure
Environmental/climate
Product life cycle
The market
Internal analysis
The corporate strategy
Skills
Financial resources
What adds value to marketing information/market research?
Accuracy
Timeliness
Relevance
Uniqueness
What is SIC?
A standard industrial classifcication is a systematic method of classifying economic activity, originally designed by governments, which is useful for specifying business market research samples from list providers and for defining an industry sector unambigously
What are the benefits of segmentation?
Facilitates better understanding of whole market place including behaviour of buyer and why they buy
Enabling better selection of market segments that best fit company capabilities
Enabling improved management of marketing activity
What is segmentation?
Consists of viewing a heterogeneous market as a number of smaller homogeneous markets in response to differing procut preferences among important market segments
Provides marketer with basis to achieve efficient and effective solution to customer problems
Can be macro or micro
Explain the segmentation funnel and the different parts
Firmographics (Macro)
Segmentation by either industry sector, organization size, location for business markets
Operating variables (Macro)
Company technology, product and brand use status, customer capabilities, customer strategy type
Purchasing variables (Macro)
Purchasing function, power strucutres, buyer-seller relationships, general purchasing policies and criteria
Situational factors (Micro)
Driven largely by time and scale dependent variation. Urgency of customer needs, scale of need
Personal characteristics (Micro)
Buyer motivation, buyer risk management behavior, relationship style, similarity of world view to supplier
What are the questions for effective segmentations?
If answer to all questions is “no” then the basis for effective segmentation isnt there
- Is management committed to the process?
- Are lines of communication open throughout the organization?
- Do you have a management information system (MIS) in place for gathering
marketing intelligence?
Adequacy of processes for undertaking the segmentation:
- Do you have sufficient marketing data and internal consensus for logically
grouping market subsets? - Does the chosen segmentation scheme fit the organization’s mission and
strategic planning initiatives? - Do you have managerial support to provide appropriate personnel and adequate
finances for the segmentation initiative? - Is communications strategy in place for informing both internal and external
constituencies? - Are the right people in place and committed to operationalizing the
segmentation scheme? - Has management shown long-term commitment to segmentation rollout and
monitoring?
