Unit 1: STRATEGIC MARKETING Flashcards
WHAT IS STRATEGIC MANAGEMENT?
Is a PROCESS, which aims to achieve SUSTAINABLE COMPETITIVE ADVANTAGES and defend it against its own rivals using ANALYSIS, PLANNING, CONTROL, ORGANIZATION AND IMPLEMENTATION.
WHAT IS MARKETING MANAGEMENT?
Is the art of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating customer value.
WHAT ARE THE 4 Ps?
Product, Place, promotion and price
WHAT ARE THE 4 Cs?
Consumer wants, convenience, communication, cost to satisfy
WHAT ARE THE NAMES OF THE DECISION LEVELS IN STRATEGIC PLANNING?
Corporate level, Strategic Business Unit level, Functional level
DESCRIBE THE CORPORATE LEVEL! (Plan, who is in charge, what are contained)
Is the top-level of decision making.
The plans are usually created by selected strategic teams such as CEO.
This plan usually spans a 3-5 year period.
It containes:
- mission
- vision
- values
- objectives
To lead the company in the right direction.
DESCRIBE THE STRATEGIC BUSINESS UNIT LEVEL! (2 points)
- As every unit has its own objectives, the goal is to achieve them in different levels with different strategies.
- It helps increase buy-ins and improves ownerships.
DESCRIBE THE FUNCTIONAL LEVEL! (3 points)
- Where the decisions are made by the employees.
- At this level they deal with fairly restrictive (akadályozó) plans.
- Day-to-day work
WHAT IS UGC?
User generated content which is created by someone who is not an official representative of your business.
DEFINE WHO A BUYER PERSONA IS!
Detailed description of someone who represents the company’s target market.
Age, location, interests, social media, stage of life, language
WHAT IS KPI?
Key performance indicator
A measurable value that shows the organization’s progress toward achieving key business objectives.
WHAT IS MARKET INTELLIGENCE? WHAT DOES IT CONTAIN? (3 points)
- Everyday data that is relevant (fontos) to marketing effort.
- The ability to stay ahead of the market and have a comprehensive understanding of your competitors.
- EVALUATE TACTICS (kiértékel)
WHAT IS ANSOFF GRID MATRIX? WHAT DOES IT SHOW? WHAT WE USE IT FOR?
Is a two-by-two framework used by management teams to:
- HELP PLAN and
- EVALUATE GROWTH INDICATIVES.
Stakeholders often use it to conceptualize the level of the risk.
Products and markets.
WHAT ELEMENTS AN ANSOFF MATRIX HAS?
First of all, we talk about existing and new products and existing and new markets.
1. Market penetration: existing products to existing markets
2. Market development: existing products to new markets
3. Product development: new products to existing markets
4. Diversification: new products to new markets
DESCRIBE THE MARKET PENETRATION! WHAT IS THAT, WHAT ARE THE GOALS AND WRITE AN EXAMPLE.
When a company sells existing products in existing markets.
Goal: increase market share and use rate
How? Decreasing the price to attract new customers
Example: customer packed goods business that sells int grocery chains
DESCRIBE THE MARKET DEVELOPMENT!
When a company sells existing products to new markets.
It doesn’t require significant investment in research and development
Would like to enter a new market or foreign market
Example: Lululemon (sports brand) who would like to expand aggressively to Asia.
DESCRIBE THE PRODUCT DEVELOPMENT
When a company sells new products to existing markets.
This company has the ears of a particular market or target group (brand loyalty)
Investing in Research and Development
Example: beauty brand which produces and sells hair products for men aged between 18-25
DESCRIBE DIVERSIFICATION AND ITS 4 CATEGORIES EACH!
When a company sells new products to new markets. This is the highest level of risk because it requires both market and product development.
- HORIZONTAL:
- method that adds new products to company’s lines that are meant to serve existing customers.
- EXAMPLE: retail company manufactures their own clothing line and sells it in stores, they add a few styles. - VERTICAL:
- when you move up or down the supply chain of your industry and take control of more stages
- you manufacture your own fabrics
- EXAMPLE: ZARA
- reduce costs and improve quality - RELATED:
- adding new products or services that are similar to existing ones.
- car manufacturer diversify into electronic vehicles - UNRELATED:
- adding new products or services that are dissimilar to the existing ones.
- EXAMPLE: media company diversify into hospitality
WHAT ARE THE 4 CATEGORIES OF THE CONSOLIDATION MATRIX?
- RETRENCHMENT
- MAINTAINING
- PRODUCT CONTRACTION
- BUSINESS CONTRACTION
DESCRIBE RETRENCHMENT IN CONSOLIDATION MATRIX!
Withdrawal of products from the weakest segments. Opposite of market development
DESCRIBE MAINTAINING IN CONSOLIDATION MATRIX!
When there are no changes in the current strategy
DESCRIBE THE PRODUCT CONTRACTION IN THE CONSOLIDATION MATRIX!
When the company eliminate some products. Opposite of product development
IDENTIFY THE TYPES OF COMPETITIVE ADVANTAGES (3)
- Overall cost leadership
- Differentiation
- Focus
IDENTIFY THE OVERALL COST LEADERSHIP! Example included
Achieve the lowest production and distribution costs.
EXAMPLE: IKEA
Looking for suppliers who can produce subassemblies (egységek) and customers who assemble (összegyűjt) the products themselves.
IDENTIFY DIFFERENTIATION AS A COMPETITIVE ADVANTAGE!
Increase profit without reducing prices.
Develop a unique product compared to its competitors.
EXAMPLE: APPLE-› premium brand image, minimalist design
IDENTIFY FOCUS AS A COMPETITIVE ADVANTAGE!
When a company is picking one or more narrow segments.
Offering high quality or low costs
For example: vacation resorts: specific customer needs, such as room design, activity selection
WHAT IS A BLUE OCEAN? TELL AN EXAMPLE ALSO
A pursuit of differentiation and low cost to open up a new market space and create demand.
- The unknown market space
- Competitions are irrelevant because the rules of the game are waiting to be set
- vast, deep, powerful
FOR EXAMPLE: Yellow Tail (wine brand) became the fastest growing wine brand in US history
How? The company recognized that most of the wine brands are competing in red oceans and with reducing the elements that the industry competed on they could create a blue ocean.
Created a drink which is sweet enough to appeal to the masses
WHAT IS RED OCEAN?
Industries in existence today
- THE KNOWN MARKET SPACE
- Industry boundaries are defined and accepted
- Companies try to outperform their rivals.
- As the market space get crowded profits and growth are reduced.
Products become commodities (árucikkek) and it leads to a bloody competition
Fast food chains
DESRIBE THE STAR IN THE BOSTON CONSULTING GROUP MATRIX
Is with high market share and high market growth.
Is really profitable and worth investing so they at least maintain their market share or even continue to grow.
DESCRIBE THE QUESTION MARK IN THE BOSTON CONSULTING GROUP MATRIX
Is with low market share but high market growth. Not very profitable but with the right investment you can turn it into cash cow or star.
DESCRIBE THE CASH COW IN THE BOSTON CONSULTING GROUP MATRIX
High market share and low market growth. Products are already profitable with little growth potential in the market. The revenue generated from cash cows can be invested in starts or question marks.
DESCRIBE THE DOG IN THE BOSTON CONSULTING GROUP MATRIX
Is with low market share and low market growth. Do not have the potential to become profitable.
WHAT IS GE-MCKINSEY MATRIX?
This is a 9-box-matrix that indicate whether the company should invest in a product, harvest/divest it or do a further research on the product and invest it if there’s still some resources left (hold, protect)
The company can judge a unit by two factors:
- the attractiveness of a company and the competitive strenghts.
