What is the marketing concept?
an organization should seek to make a profit by serving the needs of customers.
What is the purpose of the marketing concept?
to rivet the attention of marketing managers on serving broad classes of customer needs
What is marketing?
The process of planning an executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals
What is a market?
a collection of buyers and sellers
What is an exchange?
two parties, with something of value, capable of communication and delivery, with freedom to accept or reject and a belief in the desirability of what the other has
What is strategic planning?
the objectives and strategies established at the top level provide the context for planning in each of the division and departments by divisional and departmental managers
What is the strategic planning process?
What is the organizational mission
it defines the direction in which the organization will head. It is achievable, motivational, and specific. Example is the Better Beer one.
What are organizational objectives?
The endpoints of an organization mission, what it seeks through on-going long-run operations. It should be specific, measurable, and take action commitments
What are the three types of strategies?
Strategies based on products and markets
strategies based on competitive advantage
strategies based on value
What two factors make up market penetration?
Present products and present customers
What two factors make up product development?
New products and present customers
What two factors make up market development?
Present products and new customers
What two factors make up diversification?
New products and new customers
What are the seven categories that appear to influence return on investment?
“change action” factors
What two things does the Boston Consulting Portfolio model measure?
Relative market share and market growth rate
What is a star in the BCP?
High relative market share and high market growth rate
What is a cash cow in the BCP?
High relative market share and low market growth rate
What is a question mark in the BCP?
Low relative market share with high market growth rate
What is a dog in the BCP?
Low relative market share and low market growth rate
What two factors does the GE model measure?
Business strength and Industry attractiveness
What three factors make up the situation analysis?
The internal environment
The external environment
The customer environment
What three things make up the internal environment?
Review of current objectives, strategy and performance
Availability of resources
Organizational culture and structure
What seven factors make up the external environment?
What five factors make up the customer environment?
What makes up the SW of the SWOT analysis?
Scale and cost economies
Size and financial resources
Intellectual, legal and reputational resource
What makes up the OT of the SWOT analysis?
Lack of competition
Shifting customer tastes and preferences
What is the value proposition?
The unique value a business offers to its customers. It’s why your customers will want to do business with you.
What are the four factors that make up the value proposition?
Your target market
The #1 benefit your product or service provides to your target market
A description of your product or service
What makes you unique in your marketplace
What three parts make up the strategic planning process?
Strategies based on products and markets
Strategies based on competitive advantage
Strategies based on value
What are the Porter Five Forces?
What are the competitive warfare strategies?
Why do companies use competitive warfare strategies?
Because they are competing for market share
What is a defensive strategy?
It is used to defend a current market position. The industry leader wants to keep their top share. McDonald’s original plan of fast food burgers
What is an offensive strategy?
Companies use their strengths to attack a competitor’s weakness. Burger King’s “have it your way” because McDonald’s couldn’t augment their burgers. McDonald’s responded with chicken nuggets.
What is a flanking strategy?
Attack an industry leader from the sides. Companies focus on the market that isn’t being served. Hardee’s Angus burger. Target is a Wal-Mart for classy people
What is a guerrilla strategy?
attack at a high or low point (high or low prices)
it is a series of quick raids
you get in to the market, make a quick buck, then get out
Jack in the Box has products for a limited amount of time, then pulls them quickly after a lot of sales.
Airport adds, ads on buses, product placement in movies/TV
What are the value discipline strategies?
What is differentiation?
Doing something your competitors can’t do
It’s unique, difficult to copy
Dr. Pepper and Rolex
What is customer intimacy?
Knowing your customers, building loyalty through relationships
Best for services like banks, lawyers, and Realtors.
Helps build trust
What is operational excellence?
Low cost operations, produce so cheaply that you pass your savings on to your customers
What is product leadership?
What is cost leadership?
Wal-Mart discounts the products we use all the time but marks up everything else. Bait-and-switch
What are the 7 pioneer strategies?
Rules of the game
Economies of scale
What are the 5 fast follower strategies?
What are 3 strategies for pioneers?