unit 8 Flashcards

1
Q

what’s ansoff matrix

A

a marketing planning model that helps a business determine its product and market strategy

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2
Q

what does ansoff matrix axis consist of

A
  • new markets
  • existing markets
  • existing products
  • new products
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3
Q

what does market penetration

A

a growth strategy where a business aims to sell existing products into existing markets

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4
Q

examples of mark penetration strategies

A
  • aldi, rapid organic growth in the uk
    targeting same customer base with
    new stores
  • dominos, use e-commerce to
    encourage buy pizza
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5
Q

market penetration evaluation

A
  • firms focuses on markets and
    products it knows well
  • can exploit insights on what
    customers want
  • unlikely to need significant new
    market research
  • but will the strategy allow the
    business to achieve its growth
    objectives
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6
Q

what product development

A

growth strategy where a business aims to introduce new products into existing markets

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7
Q

evaluating product development

A
  • strategy that often plays to strength of
    an established business
  • strong emphasis on effective market
    research and successful innovation
  • great way of exploiting the existing
    customer base
  • being first to market us usually
    important
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8
Q

what is market development

A

a growth stratgey where the business seeks to sell its existing products into new markets

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9
Q

approaches to market development

A
  • new geographical markets
  • new distribution channels (e-
    commerce)
  • different pricing policies to attract
    new customers in different segments
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10
Q

example of market development

A

Starbucks expansions into china

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11
Q

evaluating market development

A
  • logical strategy where existing
    markets are saturated or in decline
  • often more risky than product
    development
  • existing products may not suit new
    markets
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12
Q

diversification definition

A

growth strategy where a business markets new product in new markets

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13
Q

evaluating diversification

A
  • no direct experience of the product or
    the market
  • few economic of scale
  • however it successful overall risk of
    the businesses spread

-

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14
Q

challenge for facing business strategy

A

find a way of achieving a sustainable competitive advantage over the other competing products and firms in a market

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15
Q

what is porters suggested approach to strategic positioning (2)

A

differentiation and low costs effective way for firms to gain competitive advantage

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16
Q

what is competitive advantage

A

advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benifits and service that justifies higher prices

17
Q

what is low cost

A

objective is to become the lowest-cost operator. This typically involves production o a large scale which enables the business to exploit economies of scale

18
Q

why is low cost a source of competitive advantage

A

cost leadership:
-if selling prices are broadly similar, the lowest-cost operator will enjoy the highest profits
-lowest-cost operator can also offer the lowest prices (gain market share)

suitable markets for this strategy
-standard product
-little product differentiation
-branding relatively unimportant

19
Q

likely features of a low cost operators

A
  • high levels of productivity + capacity
    utilisation
  • large - economies of scale
  • use bargaining power to negotiate
    lowest prices from suppliers
  • lean production methods and culture
  • access to widest and most important
    distribution channel
20
Q

strategy of focus and differentiation

A

with a differentiation strategy, aims to offer, a product that is directly different from the competition, with the customer valuing that differentiation

21
Q

ways for a business to achieve differentiation

A
  • superior product quality
  • branding
  • wide distribution
  • sustained promotions
22
Q

what’s stuck in the middle (porters)

A

where a firm has no clear strategy e.g. Morrisons isn’t cheap or expensive