Minshall Flashcards

Question

What are the different dimensions of Innovation?

Answer 1

Underlying processes * Process of innovation mgmt. Types * New products * New services * Manufacturing processes * Business processes Outputs * Commercial innovation

Answer 2

Five challenges with innovation **1. Market and customer issues** Failure to understand and satisfy market need **2. Technology issues** “how innovative do I want to be?” **3. Capturing the value** Weak appropriability (IP) Poor access to complementary/ specialised assets **4. Product strategy and planning** Incoherent product range Too many projects at any one time **5. New Product Introduction (NPI) process** Chaotic process, often late, over cost, many mods required Not geared to creativity/ entrepreneurial activity at front-end

Answer 3

**Post it :** Post-it note was developed by a scientist attempting to make a strong adhesive. Instead he accidently created a “low-tack”, reusable, pressure-sensitive adhesive. Scientist promoted it as “solution without a problem” and it never gained acceptance A colleague came up with the idea of using it as an adhesive to anchor bookmarks ® was not successful until they issued free samples directly to consumers who used them as post its. **Sinclair C5**

Answer 4

Managing innovation: Pentathlon Framework **Innovation strategy** Achieving strategy goals responsibility of top management * Assessing market trends and how these drive the need for innovation in the company * Role of technology → opportunities it can provide → expertise needed * Communicating the role of innovation within the company **Ideas** – raw material for innovation * Idea generation – supported at the individual and team level * Ideas should draw upon both technical possibilities and market opportunities * Time to experiment with risky ideas → cost of failure at this stage is low **Selection & Prioritization** – must be efficient process to ensure best ideas are pushed forward * Tools are used to consider the relevant merits of different projects **Implementation** – Focus on developing new products/services fast * Focus on discipline and quality, not on creativity and change * As projects move closer to market, the cost of changes become higher.

Answer 5

The classic definition of marketing Marketing is a **process** concerned with **influencing** ‘all the **potential consumers** sharing a particular **need** or **want** who might be willing to **engage** in **exchange transactions** to satisfy that want or need.’

Answer 6

Marketing is the whole business looked at from the consumer’s point of view Therefore it is: Looking at the organisation from the outside in Closely related to the market-based view of strategy A complement to the supply chain view of the business – demand chain management

Answer 7

Looking at the organisation from the outside in Closely related to the market-based view of strategy A complement to the supply chain view of the business – demand chain management

Answer 8

Understanding your customers * Major investment in gaining knowledge of ‘the market’ and ‘the customer’ – MARKET RESEARCH * ‘The market’ includes all the STEEPI factors PLUS the ‘competition’ – the ‘O’ and ‘T’ of SWOT. * Social, Technological, Environmental, Political and Infrastructural * Customers are looked at as sets of NEEDS, some of which they have already fulfilled and some which they have not

Answer 9

Culture: externally orientated Capabilities: market orientation, strategic thinking Configuration * Focus on superior customer value * Coherence of structure and systems * Adaptability Superior ability to: * Understand markets * Attract and keep customers

Answer 10

In practice a marketer’s activities usually fall into two broad groups: * Maintaining/optimising the performance of existing brands/products * Identifying new opportunities = Unmet Needs (Rational & Emotional) that could make us profit Many organisations reflect this in their organisational structure: Brand/category mgmt. and new product development

Answer 11

The changing marketing philosophy In the 1980s marketers began to extend the core marketing concept of exchange transactions into relationship creation and maintenance Exchange transactions became subsumed under the bigger relationship banner (A move from a mechanistic view to an organic one)

Answer 12

**Transactional view** * Purpose of marketing is to make a sale * Sale is the result of success * Businesses defined by products and factories * Price determined by market forces – it is an input * Communications aimed at aggregates of customers * Marketer valued for products and prices OBJECTIVE: MAKE THE NEXT SALE; FIND NEXT CUSTOMER **Relationship view** * Purpose is to create a customer * Sale is the beginning of relationship; profit is measure of success * Business defined by customer relationships * Price determined by negotiation – it is an outcome * Communications targeted and tailored to individuals * Marketer valued for problem solving ability OBJECTIVE: SATISFY THE CUSTOMER BY DELIVERING SUPERIOR VALUE

Answer 13

Marketing tools * The paradigm shift from the transactional to the relationship based view has been reflected in the changing marketing toolbox * The transactional view is relatively short termist and assumes that changing that changing one variable in the marketing mix is often all that is necessary to change consumer perceptions * The relationship base view takes a longer term, more holistic view of the business and focuses on factors that influence the development and maintenance of customer loyalty

Answer 14

The Transactional toolbox The 7 Ps marketing mix: Product Price Place Promotion (People) (Physical layout) (Processes) In the transactional world these can be infinitely manipulated to change consumer perceptions of your product or service

Answer 15

Involves firms developing the capabilities they need to provide services and solutions that supplement their traditional product offerings

Answer 16

Draw the customer relationship pyramid KEEPING * Partner * Advocate * Supporter CATCHING * Client * Prospect FINDING * Target * Target Prospect

Answer 17

Market segmentation * Markets are rarely totally homogeneous * Marketers frequently divide heterogeneous markets into sub-groups of more or less homogeneous consumers * This process is called Market Segmentation and allows Marketers to develop separate marketing strategies for each of their sub markets = segments

Answer 18

The basis of segmentation Segmentation can be carried out on a number of different criteria: Demographics: all 18-24 year olds Usage: heavy users vs light Need state: those seeking breath freshness v those seeking tooth whiteness Lifestyle: traditional v innovators

Answer 19

The extraordinary concept of a brand A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a brand is timeless

Answer 20

Products and brands A PRODUCT: Is TANGIBLE – it has physical presence Its associated characteristics are those of a tangible physical object (e.g. PRICE) and are therefore, fixed and the same for all people A BRAND: Is INTANGIBLE – it exists in consumers’ minds and cannot be physically touched Its associated characteristics are subjective and, therefore, can and do vary from one person to the next (e.g. VALUE)

Answer 21

The promotional mix Traditionally made up of four major elements: * Advertising * Sales promotion * Publicity/ public relations * Personal selling **Now two additional elements** * **Direct marketing** * **Interactive/internet marketing**

Answer 22

**Sales** * Works to increase current volume and meet current sales quotas * Interacts with the individual customer to focus on factors relating to current events * Is focussed on short-term concerns relating to today’s products, today’s customers and today’s strategies * Is a tactical function, using its skill and methods to gain immediate results as called for by a plan * Consists of work in the field, calling on customers **Marketing** * Works to increase profitability through appropriate volumes, products and customer mixes. * Is focussed on developing strategies for the optimum mix of product and markets * Is concerned with long-term issues that shape the business 5-10 years down the road – the dreaming of what could be * Is a strategic focus, using planning and direction for the big picture * Consists of office work, research and developing plans and methods for implementation

Answer 23

**Build** * Objective * Build sales volume * Increase distribution * Provide high service levels * Strategy * High call rate on existing accounts * High focus during call * Call on new accounts **Hold** * Objective * Maintain sales volume * Maintain distribution * Maintain service levels * Strategy * Continue present call rates on current accounts * Medium focus during calls * Call on new outlets when they appear **Harvest** * Objective * Reduce selling costs * Target profitable accounts * Reduce service costs and inventories * Strategy * Call only on profitable accounts * Consider telemarketing or dropping the rest * No prospecting **Divest** * Clear inventory quickly * Quality discounts to targeted accounts

Answer 24

Selling in 2018 Data and knowledge management * An example is in-app customer data collection Customer Relationship management * Data protection concerns have recently become a big issue Problem solving and system selling – relationships * Long-term relationships are built, rather than quick sales Satisfying needs and adding value

Answer 25

**What customers want?** **Production orientation** * Focus on producing goods and services **Sales orientation** * Focus on ensuring that products are sold **Marketing orientation** * Focus on identifying and satisfying customer needs and wants

Answer 26

The selling process Identify prospects Pre-approach (planning) Approach (appropriateness) Pre-close (anticipating/identifying issues) Presentation (appropriate format, demonstration) Objection handling (Negotiation) Close (mutually agree, clarity) Follow up (maintain relationships) Sales should focus on the desired outcome, rather than the product

Answer 27

Need recognition/ problem awareness Information search Evaluation of alternatives Purchase Post-purchase evaluation

Answer 28

**Primary** Identification of customer needs Presentation and demonstration Negotiation Handling objections Closing the sale **Secondary** Prospecting Database and knowledge mgmt. Self mgmt. Handling complaints Providing service Relationship mgmt.

Answer 29

Prospecting – where to look Existing customers Trade directories Enquiries Press and internet Cold canvassing/cold calling

Answer 30

Selling **Preparation** Product knowledge and benefits Knowledge of competitors’ products and their benefits Sales presentation planning Setting sales objectives Understanding buyer behaviour **Negotiations** Assessment of balance of power Determination of negotiating objectives Concession and proposal analysis

Answer 31

B2C – customer is purchasing for their own, or family’s use Fast moving consumer goods Semi durable consumer goods Durable consumer goods B2B – customer is purchasing in organisational context Supplies and consumables Capital equipment Business services

Answer 32

Who is important in the buying decision Initiator Influencer Decider Buyer User IMPORTANT TO CONSIDER How do they buy? * What are their choice criteria? * Where do they buy? * What do they buy?

Answer 33

* Recognition of a problem * Determination of characteristics, specification and quantity of needed item * Search for and qualification of potential sources * Acquisition and analysis of proposals * Evaluation of proposals and selection of supplier * Selection of an order routine * Performance feedback and evaluation

Answer 34

**Buy class** * Straight re-buy * Modified re-buy * New task **Product type** * Product constituents * Production of facilities; MROs **Importance of purchase**

Answer 35

**Market** – maximum coverage, compatibility **Channel costs** – short channels vs long channels **Product** – cost; technology; service requirements **Profit potential** – cost benefit **Channel structure** – nature of demand; other players **Product life cycle** – stage of maturity **Non marketing factors**: available resources; location

Answer 36

Characteristics of Sales Channels **Direct** The manufacturer does not use a middleman and delivers direct to the end customer **Selective** The manufacturer sells through a limited number of middlemen who are chosen because of special abilities or facilities to enable the product to be better marketed. **Intensive** Maximum exposure at the point of sale is needed and the manufacturer sells through as many outlets as possible **Exclusive** The manufacturer sells to a restricted number of dealers.

Answer 37

Customer Relationship Management (CRM) * Aid interaction between customer and company * Enabling coordinated communication * Provides “single customer view” of each client * Consolidating data from many databases * Links sales and other business activities * Can allow analysis of customer activity and profitability * Effective implementation requires: * Customer orientation * Full integration * Scope for adaption to business needs