3.3 - Decisions To Improve Market Performance Flashcards
(22 cards)
What is marketing?
The process of identifying, anticipating and satisfying customer needs profitably
What are the 5 steps in a decision making cycle in a marketing context?
Set objectives
Analyse the situation
Assess the resources available
Make a clear decision
Review the decision
Why set marketing objectives (4)?
Steer direction of business
Helps to co-ordinate business activity
Motivational target
(has to be right as it could become stressful and unachievable-increases probability of success as decision making is more focused)
Must be consistent with purpose of marketing and need to be consistent with and support overall corporate business objectives
What is a marketing objective? What must they be?
- Short term goals/targets
Marketing target or goal that an organisation hopes to achieve - Marketing objectives must be compatible with overall objectives of company
To set effective marketing objectives what must they be? ACRONYM
Specific
Measurable
Achievable
Realistic
Time frame
SMART
Give 5 examples of marketing objectives
More information needed for them to be SMART
Sales volume (number sold) and sales value (could increase price)
Market size (could sell in new areas)
Market share (share of total customers)
Brand loyalty (sticking to your brand)
To enhance (improve image) or reposition (think of it in a different way eg/luxury) a brands image
How do you calculate percentage change?
Change / original price x 100
What are the six functional areas of business management?
Strategy
Marketing
Finance
Human Resources
Technology and equipment
Operations
Therefore all businesses should concentrate on researching and thoroughly understanding these areas as they relate to the individual business
Give 4 examples of functional change and how it supports marketing?
Raising finance - investment in new products
Introduce quality assurance and lean production - improve product quality and profitability
Training programme for staff - improve quality of customer service
Allocate specific production for a new retail customer - expand product distribution and increase sales
What are the 3 internal influences on marketing objectives and decisions? What are the 4 external influences on marketing objectives and decisions?
1 New corporate objective eg/ set by a new chief executive 2 New innovative product eg/ iPod - change in apple inc. refocus from IT to consumer electronics 3 New financial objectives eg/ higher profit margins
1 Changes in fashion/taste
2 Changing competitive pressure
3 Changing natural environment
4 Changing economic pressure
Why might internal influences lead to the wrong marketing objective being adopted?
Pressure for short term profits leading to short termism approach
Shareholders interested in immediate profit not what’s going on inside company
What are the 3 types of leaders and what do they advocate? Give 3 points for each (eg/ communication type and how they treat workers
Also include the 2 main ways in which delegation is approached
AUTHORITARIAN
- Tell employees what to do, don’t want feedback
- Don’t listen much to what workers have to say
- Top down communication
PATERNALISITIC
- Loving and caring about staff (interested in welfare, their social needs (interactions) & providing job security-think & act like parent)
- Try to do what’s best for staff
- May consult staff to find out their views but decisions are made by the “head” of the family
DEMOCRATIC
- Like to involve workers in decisions and listen to employees ideas, making sure they’re contributing
- 2 way communication
- Often delegate decision making to junior staff
Delegation can be approached in two main ways:
- management by objectives (given targets to meet)
- laissez-faire (let them do what they thinks best)
What ways are there to analyse leadership styles? What do they show/look at? Give 2 advantages and 1 disadvantage
Blake Moulton Grid
Looks at two leadership behaviours:
- concern for people (goes on left)
- concern for performance/task (goes on bottom)
Then grades people on each of these scales to determine type of leader they are
Score of 9 highest score of 1 lowest
+ help leaders understand natural leadership style
+ leaders can then create personal development plan to progress towards team management 9,9 style if they don’t possess this already
- Possibly implies leadership styles are static (can’t change)
Tannenbaum and Schmidt presented leadership styles in continuum suggesting its more dynamic (not 4 set boxes, can go in between)
Tannenbaum and Schmidt
Highlights range of different management and leadership styles that may be adopted ranging from a tell approach to one involving delegation
Shows there’s a range of styles rather than categorising management and leadership simply in terms of either authoritarian and democratic- shows continuum
+ gives range of ways in which to involve and interact with your team
+ allows you to understand how your approach should change over time as situation changes
- only examines process of giving task to your team, not what happens next
On the Tannenbaum Schmidt continuum what is meant by tell, sell, consult and delegate?
Tell
- leader identifies problems, makes decisions and announces to subordinates (expects implementation)
Sell
- leader still makes decisions but attempts to overcome resistance through discussion and persuasion
Consult
- leader identifies problems and presents it to group (listens to advice and suggestions before making decision)
Delegate
- leader defines problem and passes on solving and decision making to group which mangers are part of
If your score is 9,9 on the Blake Moulton Grid, what does this say about you? If you score 1,1 on the Blake Moulton Grid, what does this say about you?
9,9
Team management/teamwork
Staff are closely involved in decision making and feel valued
Consistent with mcGregor theory Y
1, 1 Impoverished management Laissez- faire style Minimal effort in management Hoping to avoid blame for errors
If you score high task, low people (9,1) on the Blake Moulton Grid, what does this say about you?
Authoritarian leader
Task orientated and are hard on workers
Little or no allowance for co operation or collaboration
Very strong on schedules, expect people to do what they’re told without question or debate, when something goes wrong tend to focus on who’s to blame rather than concentrate on exactly whats wrong and how to prevent it, its difficult for subordinates to contribute or develop
If you score high task, high people 9,9 on the Blake Moulton Grid what does this say about you?
Team leader
Leads by positive example and endeavours to foster a team environment in which all team members can reach highest potential both as team members and people
Encourage team to reach team goals as effectively as possible
Work to strengthen bonds among various members
Normally form and lead some of the most productive teams
If you score low task, high people (1,9) on the Blake Moulton Grid what does this say about you?
Country club leader
Uses predominantly reward power to maintain discipline and to encourage team to accomplish its goals
Almost incapable of employing the more punitive coercive and legitimate powers, this inability results from fear that using such powers could jeopardise relationships with other team members
If you score low task, low people (1,1) on the Blake Moulton Grid why does this say about you?
Impoverished leader
Uses a delegate and disappear management style
Not committed to either task accomplishment or maintenance, essentially allow team to do whatever it wishes and prefer to detach themselves from team process by allowing team to suffer from series of power struggles
What are the 4 advantages and 4 disadvantages of autocratic leaders?
When might the autocratic style of leadership be most appropriately used?
1 Clearly defined chain of command
2 Leaves little room for miscommunication
3 Decisions are made quickly
4 Reduces employee stress
1 Pressure on leader (leader is only one making decisions and determines company’s strategies so can easily feel overwhelmed)
2 Lack of flexibility in workplace
3 Can cause employees to resent leaders and organisation
4 Does not offer sense of ownership
Best used in situations where control is necessary often where theres little margin for error
When conditions are dangerous, rigid rules can keep people out of harms way
What are the 3 advantages and 4 disadvantages of democratic leaders?
When might the democratic style be most appropriately used?
1 Brings more viewpoints to table
Allows more efficient problem solving
2 Invites higher level of commitment
3 Builds team relationships
1 Can lead to procrastination
2 Takes time to reach a consensus
3 Offers an element of continuing uncertainty
4 Doesn’t guarantee best possible decision
Best used in situations where leader is working with highly skilled or experienced workers
It allows leader to capitalise on their employees individualise talents and strengths
What are the 4 advantages and 4 disadvantages of paternalistic leaders?
When might a paternalistic leadership style be most appropriately used?
1 Focuses on employee welfare
2 Although employees might not have to impact decisions within company, paternalistic leaders decision making is strongly influenced by effect of different actions will have on the employee
3 High employee loyalty (feel like they’re being heard and needs are met)
4 Feedback is invited and encouraged which improves morale
1 Employees become more dependent on employer (can cause increase in necessary supervisions in order to get things done in timely and appropriate manner)
2 Employees could become highly competitive as they all compete for attention and affection
3 If roles not well defined and employees don’t know what is needed from them there can be power struggles and internal issues
4 Managers could become blind with power and make decisions that only benefit themselves
Respected in eastern countries like India and culture
Related to culture
