building market strategy

Question 1

what are the four types of Ansoff strategy opportunity matrix?

Answer 1

-market penetration
-market development
-development
-diversification

Question 2

what is the purpose for ansoff strategic opportunity matrix?

Answer 2

understand the opportunities relative to the markets we could be serving whether they are existing, or new, and the products we could be selling in the marketplace

Question 3

what is market pentration?

Answer 3

• serving more customers within the current customer segments with the same offerings the org already produces
  -lowest risk since you have experience with them and has the lowest potential reward for the and lowest in the revenue stream

Question 4

what is market development?

Answer 4

• serving a new customer segment (new market) with current products

Question 5

what is product devlopment?

Answer 5

serving the current segment with new offerings that the org could potentially build

Question 6

what is diversifcation?

Answer 6

-serving new customer segments with new offerings
- highest risk (no experience) and has highest potential reward (creating future revenue streams)

Question 7

what are the four types of Boston consulting group matrix?

Answer 7

• star - high growth and high share
• cash cow - low growth and high share
• question mark - high growth and low share
• dog - low share and low growth

Question 8

what is the purpose of the Boston Consulting Group matrix? what are the two metrics that SBUs use?

Answer 8

-used to predict future cash distributions for strategic business units by plotting the current performance of the orgs offerings in the market in 2 metrics
-1. relative market share: percentage of market share the offering captures in a given market relative to the market share of the other offerings
2. market growth rate: the current rate of growth for the market in which it is sold

Question 9

where would you invest in Boston?

Answer 9

• stars: lot to invest in and grow share
• question marks - pushed against by other winners and lot of investment: if you invest carefully, figure out how we can capture more but know when to abandon an offering that will not capture a high percentage

Question 10

why would you not always want to invest in stars? where does the money come from?why would we want to keep dogs?

Answer 10

• uses a lot of money
• cash cows
• only want when it is a legacy product and signals something about the brand

Question 11

what are the three sections of Porter’s generic strategies?

Answer 11

• cost leadership - invest to lower the cost of operation
• differentiation - uniquely desirable products that serve broad market needs (investment to make your product better)
• focus (differentiation)= specialized service in niche markets (difficult to win with low cost and narrow)

Question 12

what are the two matrices that f Porter’s generic strategies is measured in?

Answer 12

-competitive advantage
-target scope

Question 13

what is competitive advantage?

Answer 13

orgs can focus on creating a unique offering in the market place to serve unique needs of particular customer segments (product uniqness) or lower cost of operations which would capture more profit from every transaction (low cost)

Question 14

what is the target scope?

Answer 14

decide on the scope of the target market it wants to serve and to decide to serve the needs of the broader market place or narrower customer segments with extremely specialized needs

Question 15

why is focus strategy low cost excluded?

Answer 15

• does not work because a narrow segement with low cost is hard
• you wouold have to decrease cost per unit to make profit

Question 16

what are the three types of aspiration decisions and what are they?

Answer 16

-segmenting= group customers based on similar needs/profiles each
- targeting =assess the attractiveness of each segment. select segments into targets
- positioning = define the value proposition for target segments/develop an action plan

Question 17

market define

Answer 17

heterogeneous set of people or orgs with needs or wants and the ability and willingness to buy

Question 18

define market segment

Answer 18

a more homogenous subgroup of people of organizations sharing one or more characteristics that cause them to have similar, identifiable segments or groups

Question 19

define market segmentation

Answer 19

the process fo dividing a market into meaningful relatively similar, identifiable segments or groups

Question 20

why do companies segment their markets?

Answer 20

• we can understand the needs of segment markets which will let us target their needs in a specific way letting us give better value and better focus out resources

Question 21

why do organization and customers segment the market?

Answer 21

• customers: convenience and time-saving
  tailored product and services
  relevant offers
  personalized experiences
• org : identification of unfulfilled needs
  better product design
  more targeted promotions
  increased customer satisfaction

Question 22

why do companies segment their market?

Answer 22

-more precise definition of customer needs and wants
- more accurate marketing objectives
-improved resource allocation
-better marketing results

Question 23

how do we segment the market? (like the good criteria)

Answer 23

• identifiable and measurable - identify customers in each segment and to measure their characteristics
• substantial -large enough to be profitable
• accessible - reachable through communication and distribution channels
• stable - over a large enough period that any marketing effort would be successful
• differentiable - each segment should have different needs
• actionable - attract and serve customers in identifiable segment

Question 24

what are the dimensions for segmenting consumer markets?

Answer 24

geographic
demographic
psychographic - lifestyle personality
behavioral - usage rates, loyalty etc
benefits sought - goal

Question 25

what is the family life cycle?

Answer 25

the number of demographic values added together helps retailers catch people in their change to different stages (different stages means people make diff changes)

Question 26

geodemographic sgementation?

Answer 26

segmenting potential customers into neighborhood lifestyle categories. combines geographic, demographic, and lifestyle segmentation

Question 27

dimensions for segmenting business markets?

Answer 27

geographic - country, region
firmographic - industry/ firm size
buying approach
behavioral
benefits sought

Question 28

satisfiers

Answer 28

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

Question 29

optimzers?

Answer 29

business customers who consider numerous suppliers,both familiar and unfamiliar and study all carefully before picking one