Slides Flashcards
What are the four categories of the BCG portfolio Model
Stars
Cash Cows
Question mark
Dog
Stars
High growth rate, High market share
Takes up a lot of cash because of the growth and makes a lot of money due to high market share.
Amazon
Cash cows
Low growth rate, High market share
– Makes a lot of money. Growth has slowed down. So less expenses (Coca- Cola, Apple)
Dog
low growth rate, low market share
No potential
Question mark
Growing fast. Taking up a lot of cash but generates less cash due to low market share. It will either gain market share and become a star or lose eventually become a dog since they are not making money. (Smartwatches)
Usually helped out by cash cows
market penetration
Existing product into an existing market
product development
New product into an existing market.
market development
Existing product into a new market
Diversification
New product into a new market
product orientation
all about the product. Does not consider competitors or the needs of the market
Sales orientation
Aggressive sales techniques
Market orientation
understand customer needs, company capabilities, knows competitors, and wants to make a profit
societal orientation
concerned about the environment
what are the five forces in porter’s five forces model?
Threats of entrants power of suppliers competitive rivalry threat of substitutes power of buyers
Competitive rivalry
Rivalry among existing companies in a particular industry varies in intensity based on the type and number of competitors and on the basis of competition—price discounting, advertising, new product offerings, and service quality. High competitive rivalry drives down industry profits. Delta vs. United
power of suppliers
Powerful suppliers can drive down industry profits by charging higher prices and/or reducing product and service quality. Oil Industry or Boeing
power of buyer
Powerful buyers (customers) can use their clout to demand and receive lower prices, increased product quality, and more services.
threat of entrants
New entrants can shake up an industry and cause increased competition as they seek to take market share from existing companies in the industry.
threat of substitutes
Substitute products have the potential of replacing existing products because they perform a similar function. As a result, industry profits suffer
Exporting
Sending products manufactured in one country to a different country. There could be regulations by governments to ensure the local companies are competitive.
lowest risk lowest return
licensing
Giving permission to individuals or businesses to own your products/brand name as long as they abide by certain rules when it comes to the product and quality
joint venture
– If you don’t know much about a market, you are better off joining hands with a company who is familiar doing business in the area. (they know the consumers better, they know the area better, they can get things done better)
Joint ownership and control
direct investment
build up wholly owned operations in other countries
highest risk, highest return
what are the three parts of the fraud triangle
opportunity
pressure
rationalization
cross tabs analysis
frequency counts
conditions, attitudes, and/or behaviors that occur most often
Analysis of variance
variability around the average
averages that differ beyond expected variability
regression analysis
Relationship between a dependent variable and one or more independent or predictor variables
Factor analysis
Data reduction techniques
Identify highly correlated variables, group into factors
cluster analysis
Classifies objects or people into groups based on similarities
Divide markets into segments
Discriminant analysis
Ability of predictor variable to discriminate between categories
Generate perceptual maps depicting brands
max diff analysis
Measures most/least important or most/least appealing
Determine choice preferences
conjoint analysis
Estimates the value of component attributes given tradeoffs
Develop new products and identify pricing alternatives
data product
combine data with statistical algorithms to create value for customers
make inferences and predictions
ex: amazon does purchase recommendations,
Facebook does people you may know
Consumer Behavior process
problem recognition–perceiving a need
Information search–seeking value
evaluation of alternatives–assessing value
purchase–buy value
post-purchase evaluation–consuming, experiencing, using, and evaluating value
sell to the ______ group in the eyes of the ______ group
swing, love
what are four ways to segment the market
geographic–region, city size, climate
demographic–age, gender, race, occupation
Psychographic–lifestyle, personality, values
behavioral–usage situations, benefits
which segmentation of a market is the most useful?
Behavioral
which segmentation of a market is the most used?
Geographic
what are the three brand types in the brand matrix
Functional
Image
Experiential
Functional brand
superior performance or superior economy
product, price, and/or place
solves physiological and safety needs, relatively low involvement
image brand
wanted for desirable image
promotion
solves social and esteem needs, moderate to high involvement
Experiential brand
wanted for a unique engaging experience
product and place (delivery and service)
meets self actualization needs, moderate to high involvement
Brand awareness
consumers know about the brand
Brand image
consumers have a definite impression about the brand
brand loyalty
consumers only purchase thier favored brand
brand equity
brand loyalty is transferred to all products within the brand
servant’s heart service provider
high service quality
low service productivity
tiger service provider
high productivity
high quality
kitten service provider
low productivity
low quality
fox service provider
High productivity
low service quality
reliability
the ability to perform the promised service dependably and accurately – the first time
Responsiveness
helping customers promptly
assurance
providing the service with competence, courtesy, credibility, respect, and security
empathy
providing easy access, clear communication , and listening to understand customer needs
tangibles
the appearance of physical facilities, equipment, and personnel
total cost=
fixed cost + variable cost
Unit margin =
price - unit variable cost
percent margin=
price- unit variable cost
__________________
price
Buying situation
paying more or less for something depending on where you are buying it
relative incentives
deals with different products but same incentives (saving $10 on different items)
nature of product
– You’ll pay more for medicine you need to need than you will for a movie ticket
skimming pricing
sell at high price before reducing to next price level and repeat
penetration pricing
whole market price
elastic demand
sensitive to price
inelastic demand
not as sensitive to price
Advertising
Paid placement of announcements and persuasive messages to inform, gain liking/interest, and/or stimulate action
sales promotions
Short-term incentives to encourage trial or increase purchase (Ex. Coupons, Rebates, Samples, Contests, Premiums, Price packs)
personal selling
Two-way communication between a buyer and seller designed to influence a purchase decision
public relations
placement of new or media presentations with the deliberate attempt to manage the publics perception
direct marketing
Promotional element that uses direct communication with consumers to generate a response in the form of an order, request for information, or visit to a retail outlet or website. (Ex. Direct Mail, Telemarketing)
intensive distribution
maximum market coverage–firm seeks to make the product available in every outlet where customers might want to buy it
selective distribution
a level of distribution intensity whereby a firm selects A FEW retail outlets in a specific geographic area
exclusive distribution
a level of distribution inteseity whereby only ONE retail outlet in a specific geographical area carries the firm’s products
what should be the best channel system achieve?
ideal market exposure
what are successful startups built on
consumer insight
what are the three aspects of a competitive angle
lifts consumer over a hurdle
- makes a personal connection
- Unique or different
what are hurdles
something the customer wants but cannot obtain
new products are successful when they
get people over hurdles
what are three big challenges for entrepreneurs ?
- lack credibility
- power is with the buyers
- Ego
what is the solution to lacking credibility
- dress the part
- speak the language
- seek to understand
- listen
- set correct expectations
- be responsive- deliver results–meet and exceed expectations
what are the 5 launching tactics
use marketing events to create buzz
- make the demonstration compelling
- Create a catch phrase and or jingle
- Select the channel
- Close the deal
make the demonstration compelling
It’s important to showcase the relative advantage of the product and it’s fit with day to day life of potential customers.
- relative advantage
- fit with the day to day
Select the channel
put the product where the people are
- ready to buy
- able to pay
- know that good alternatives are out of reach
create a catch phrase or jingle
combine authentic hopes or needs with unique features and benefits to create your catch phrase.
