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1

Define marketing?

Marketing can be defined as knowing customers and their problems, innovating solutions to these problems and communicating and delivering them to a carefully defined target market more effectively than your competitors and in a manner that maintains or improves society's wellbeing.

 

2

What is a function needs matrix?

Needs should be matched by benefits not features.

 

3

What is the difference between sales and marketing?

  • Sales and marketing are different but related activities
  • Selling is the transaction based activity whereby you persuade someone to exchange your product for money.
  • Marketing is the study of potential customers, what they want and how much they will pay, how many customers are there etc.

 

4

What is SPIN and the 7 stages of selling?

SPIN

  • Situation
  • Problems
  • Implications
  • Needs payoff

 

7 stages

  1. Awareness
  2. Leads
  3. Response
  4. Telephone
  5. Meetings
  6. Solution
  7. Customer relationship management

5

What are the main differences between B2B and B2C selling?

B2B

  • Derived demand
  • Complex buying/selling process
  • Concentrated customer base
  • Emphasis on technology
  • High customisation
  • Made to order

6

What are SMART objectives?

Specific

Measurable

Aspirational

Realistic

Time bounded

7

Explain the role of marketing management at the different business levels?

At the corporate level

  • what businesses should we be in?
    • assessment of demand analysis and market trends
    • critical success factors
    • resource allocation across the business portfolio

 

At the business level

  • how should we compete?
    • customer analysis
    • competitor analysis: competitors vs success factors
    • strengths and weaknesses
    • marketing segmentation
    • positioning and targeting
    • delivering superior customer value

 

At the product level

  • implementing business and corporate level strategy
    • selection of customers
    • new product development
    • 4Ps
    • sales force requirements
    • market research
    • competitor analysis

8

What are key steps in business planning?

  • Set the financial objectives of the business
  • The business audit: where are we now and how did we get here?
    • marketing, distribution, manufacturing, financial and personnel audit
  • Objectives and strategy:
    • marketing, distribution, manufacturing, financial and personnel O&S
  • Plans
    • marketing, distribution, manufacturing, financial and personnel plans
  • Business plan
    • integrate individual function plans together

9

What are the important steps in marketing planning?

  • Marketing audit
  • SWOT
  • Marketing objectives and strategy
  • Forecasts and budgets

 

Porters 5 forces:

  • potential entrants (threat of rivalry)
  • industry (barriers to entry)
  • substitutes (threat of substitution)
  • buyers (bargaining power)
  • suppliers (bargaining power)

 

Porter's value chain

  • Inbound/outbound logistics
  • Distribution
  • Marketing and sales
  • Service
  • HR, technology development and procurement all run in parallel

 

10

What are the important parts of the marketing audit?

External

Macro

  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental

Markets

  • Total market size, growth and trends
  • Market structure and characteristics: 4Ps etc

Competition

  • Competitors, market share, reputation, capabilities, culture, ownership, profitability

 

Internal

  • Sales: geographic, sector, product
  • Market shares
  • Profit margins
  • Marketing mix
  • Pareto
  • SWOT

 

BCG matrix (market share vs growth rate)

  • stars, question marks, dogs, cash cows

 

11

How do change marketing depending on BCG matrix?

Stars

  • high market share/high market growth
  • potential for significant earnings
  • may need marketing spend for support
  • good investment

Question mark

  • small market share/high market growth
  • many competitors
  • needs money to develop
  • has potential to succeed/fail
  • needs research

Cash cow

  • high market share/low growth
  • low development and marketing costs
  • high profitability
  • hold for as long as possible without losing status

Dog

  • low share/low growth
  • cost disadvantage
  • no customer support
  • low profitability
  • best get rid

 

12

What are the main drivers of change?

  • competition
  • sophistication of customers
  • legislation
  • demographics
  • environmental
  • technology
  • limits to growth

13

How to create a strategic advantage?

How to compete?

  • competitive advantage:
    • superior product, low cost operations, legal, contacts, knowledge, scale advantages
  • porter's three strategies
  • organisational problems

Direction of growth

  • Ansoff (market newness vs technology newness)
    • existing products in existing markets
    • existing products in new markets
    • new products for existing markets
    • new products for new markets

Method of growth: acquisition vs organic

14

How to link marketing to NPI?

1. customer requirements

2. planning matrix

3. technical requirements

4. inter-relationships

5. roof

15

Describe tools that can be used alongside a roadmap?

  • SWOT
    • S&W: market, business , product, service, system
    • O&T: technology and resources
  • PESTLE: market and business
  • Porter's five forces: market and business
  • Technology intelligence: product, service, technology, resources
  • Gap analysis: future
  • BCG: technology and resources

16

Explain porter's competitive strategy

strategic target vs strategic advantage

 

Cost leadership

Differentiation

Focus

17

Explain the different ways the 4Ps can be used

Product:

  • tangible
  • brand, design, quality, features, packaging, service, delivery
  • core, expected, augmented, potential

Price:

  • cost plus strategy, demand based, product line, marginal, competitive, life time, price discrimination

Place:

  • right place for product, right place for target market, sufficient area coverage, managing channel conflict

Promotion:

  • advertising, exhibitions, publicity materials, packaging

18

What is needed in an effective marketing strategy?

  • complete understanding of customers and needs including his own market
  • customer orientation as strong as technical orientation
  • appreciation of sources of uniqueness
  • understanding of strengths and weaknesses
  • integration of components of marketing strategy to yield competitive advantage through differentiation.

19

Explain the difference between the classical view of brands and modern view?

Classical view:

  • A distinguishing name or symbol that identifies the goods of one seller and differentiates them from competitors.
  • Brand is the sum of parts around the product: name, pack, promotion, distribution, price, place
  • Segmentation, positioning

Brand is a lifeless object that can be manipulated - it has no inherent life of its own. Assumes humans are rational and it is the functional side of the brand that is important.

 

Was not working because: 

  • blind tests failed (bells vs famous grouse)
  • brand planning was not delivering results (ariel vs persil)
  • M&A showed value of brands

 

Modern view:

  • product is made in a factory, brand is bought by customer.
  • product can be copied, brand is unique.
  • product can be outdated, brand is timeless.

Complexity of consumer motivations:

  • rational (reason for purchase)
  • emotional (how it makes them feel)
  • social (improvement of social standing)
  • cultural (how it reinforces my cultural identity)

Brands are actually the public face of your Strategy in Action

20

Describe the brand identity prism

Owner perspective

  • substance: the observable face of the brand - product, packaging, logos, advertising, price, distribution
  • personality: the format and style of the brand's communication with the rest of the world

User perspective

  • user image: non users view
  • self image: users view of themselves

Link facets

  • relationship: between the brand and its users and potential users
  • culture: value system for which the brand stands

21

What is a yield based manufacturing process? Give examples.

Manufacturing where the product can vary in quality. This feeds into the price and marketing strategy for that product. For example they may be sold in different markets, sold under different brands.

Examples of yield based manufacturing:

  • semi conductors, wine, electronic force compensating weighing scale
  • diamonds, oil, petrol

 

Sometimes the same product is sold differently:

  • unilever makes a premium on its own brands
  • volkswagen and skoda

 

22

Why did Dyson choose Japan as a market?

  • 120 m people
  • innovation and technology culture
  • no maids or cleaners (wages too high)
  • economy supports premium pricing
  • small apartments and houses

 

Invented digital motor that was much more expensive. To bring down unit cost and achieve economies of scale created other products: fan, hand dryer, hair dryer.

23

Draw the product life cycle

Stages:

  • development
  • introduction
  • growth
  • maturity
  • saturation
  • decline

24

Explain the different buyer types over the product life cycle?

  • innovators "techies":
    • will buy because it is new
  • early adopters "visionaries":
    • will buy because it is a breakthrough to a dream
  • early majority "pragmatists":
    • will buy because it is an improvement and fits with the infrastructure
  • late majority "conservatives":
    • will buy because it is a standard everyone has adopted
  • laggards "sceptics":
    • will buy because it is the only option

25

Explain how buyers priorities change over the life cycle

26

Explain how the BCG matrix fits into the life cycle

27

Explain the balance of risk and price, considering the different stages in the life cycle.

Introduction:

  • Price and risk are high. Only a small number of buyers will gain sufficient benefit to justify purchase.

Growth

  • Price and risk have fallen. A larger number of buyers will benefit

Mature

  • Risks are almost non existent although cost of change. Benefits tend to exceed risks

Decline

  • Cost of change is not yet balanced by benefits. Benefits fall as there are better substitute technology.

28

Explain the steps in the purchase of capital goods and consumables

Capital goods

  • Inital purchase trigger
    • external vs internal triggers
    • business and personal drivers
  • Information gathering
  • Selection process
  • Purchase transaction
  • Post purchase experience

Consumables

  • Purchase transaction
  • Post purchase experience

The purchase of consumables is typically a two-step process, provided that the post-purchase experience is good

 

29

What are the factors that separate competitors?

  • Quality
  • Availability/Delivery
  • Design
  • Serivce/Support
  • Price
  • Warranties

30

How is channel choice determined?

If buyers choose the channel first, you need a PUSH strategy focussed on the distributor

If buyers choose the brand first, you need a PULL strategy focussed on the end user