exam intra Flashcards
(98 cards)
1
Q
what is a need
A
state of lacking something, for example, being hungry.
2
Q
what is a desire
A
On the other hand, a desire is how that need will be satisfied.
3
Q
what is market demand
A
The sum of all individual company demand
4
Q
what is real demand
A
expression in dollars of the transactions carried out to buy a product or service from a specific company
5
Q
What is the potential demand
A
maximum level that demand can reach in a given context
6
Q
Consumer market
A
B2C: all the individuals who purchase products or services to meet their personal needs.
7
Q
Business market
A
B2B: organizations that buy products or services in order to use them to make other goods or to meet their internal needs. They may be the industrial suppliers of a consumer good manufacturer, or or any firm that sells to other businesses, municipalities or public organizations.
8
Q
Intermediaries market
A
individuals and organizations situated between the producer and the consumer who buy products and services with the intention of reselling them
9
Q
State market
A
B2G : market composed of federal, provincial and municipal governments.
10
Q
International market
A
Selling to other countries (individuals or businesses)
11
Q
what do we mean by value creation
A
Consumers hope to find added value as they want to emerge winners from the exchange process. For this reason, it is important for the company to fully understand what its customers expect in terms of value (functionally, economically, socially and experientially).
12
Q
what is a strategy
A
A strategy follows an overall vision of the means necessary to achieve a final objective in line with the company’s mission.
13
Q
What is a tactic
A
A tactic is a temporary adjustment of an element of the strategy at a given time.
14
Q
What is a leader strategy
(Competitive strategy)
A
A company with that strategy will occupy a dominant position in a given market and is recognized as a leader by its competitors.
the leader sets the pace of the market and is constantly watched by other companies
15
Q
What is a challenger strategy
(Competitive strategy)
A
Company that is considered the main rival of the leader. it seeks a dominant position.
A challenger must often deploy more efforts to reach its objectives.
16
Q
What is a follower strategy
(Competitive strategy)
A
a competitor with a small market share that adapts its actions to its competitors. Develops strategies that aim mostly to retain market share instead of increasing it.
17
Q
What is a specialist strategy
(Competitive strategy)
A
A company that focuses on a distinctive market segment. strategies are developed to seek a niche that separates the company from its competitors.
18
Q
What is market penetration
(development strategy)
A
A company seeks to increase the sales of its existing products in existing markets by using different methods.
19
Q
What is market development
(development strategy)
A
a company seeks to increase its sales by introducing existing products in new markets
20
Q
What is product development
(development strategy)
A
a business seeks to increase sales by using its existing markets to launch entirely new products or a modification of existing ones.
21
Q
what is diversification
(development strategy)
A
a business aims to increase sales by developing new products for new markets.
22
Q
How do we analyze strategic position in a market
A
use the BCG matrix→it takes into account the position of a company or one of its products based on its market share relative to the market leader and the market growth rate.
23
Q
What are stars
A
products for which a company has high rel. MS in a growing market. the company needs considerable liquidity to finance its growth
24
Q
what are problem children
A
companies must remove products whose competitive position regarding relative market share is not expected to improve. these products drain capital that can be put to better use.
25
What are cash cows
in a slow-growing market, companies can reap abundant benefits from products with a high market share
26
what are dogs
a company cannot use its capital to attempt to grow its market share with weak potential growth. companies will either remove dogs or cut their marketing costs to a minimum.
27
What is a marketing plan and why is it important
A marketing plan is an analytical framework that may cover the entire company, as well as only a specific sector. It features 3 general elements: analysis, strategies and action program. A marketing plan is an essential tool that allows a manager to plan, coordinate, implement and control their actions. It is a “living” tool that should be reviewed cyclically.
28
What question does the "analysis of the situation" answer?
Where are we right now and where are we going
29
What question does the "elaboration of marketing objectives" answer
where do we WANT to go
30
What question does the "resource allocation" answer
What efforts should we invest in
31
What question does the "deciding on marketing strategy" answer
whom do we want to target and how do we want to be perceived
32
What question does the "deciding on the a marketing mix" answer
how do we want to get there
33
what question does "implementation" answer
what do we do
34
what question does "control" answer
how will we know we are going in the right direction
35
how important is the control step
The main goal of the control step is to measure the path to reaching the company’s goals. It consists of partially or fully examining the results of a marketing action in order to gauge its performance and to make any necessary adjustments if there is a discrepancy between forecasts and reality.
36
Internal environment: key resources and skills
Internal capabilities that contribute to the organization’s competitiveness, which are difficult to replicate. These skills are found in the organization’s resources (e.g., human, financial, IT, or procurement).
37
internal environment: current offering
An analysis of performance (e.g., sales, market share, and profitability). The objective of this exercise is to ensure that the offering is well aligned with the organization’s mission and takes into account its resources and capabilities. This analysis could reveal previously overlooked development opportunities or incorrect decisions regarding the marketing of certain products or services that are not (or are no longer) in line with the organization’s stated mission.
38
Internal environment: past performances
An analysis of its performance history gives the organization a better understanding of its strengths and weaknesses. By examining the evolution of a product’s sales, market share and profits, the analyst or marketing manager can observe which products are no longer attracting customers and conduct surveys to explain this decline. This can also help them understand certain weaknesses and act in time to remedy them, before the situation poses a real threat to the company’s image and the perception of its other products.
39
internal environment: Relationships with business partners
Suppliers, distributors and other business partners can help strengthen the organization’s position in the market or, on the contrary, hinder its expansion. A firm that fails to win the trust of distributors will not survive the fierce battle of brands competing for shelf space.
40
Internal environment: Key factors to failure or success
internal factors can have a positive or negative impact on activities and therefore can either be an asset or a liability. The key factors of failure will turn into weaknesses if the organization does not equip itself with the necessary tools to counteract the effects. Key success factors will only turn into strengths if the organization gives itself the means to take advantage of them.
41
Internal environment: primary and support activities
-primary activities: internal logistics, operations, external logistics, marketing and sales, and after-sales service (SAV)
- Support activities: organizational infrastructure, human resource management, technology development, purchasing, and procurement.
42
Internal environment: benchmarking
A continuous process to measure the performance of products, services and practices, compared to the top-performing competitors in the sector or other firms considered leaders in other sectors. The comparisons can also be made internally based on the best processes and practices in other divisions of the organization.
43
What is included in an organization's microenvironment?
A microenvironment includes an organization’s established and potential competitors, substitute products, customers (buyers in the consumer and business markets) and suppliers
44
How can each player in an organization's microenvironment have an impact on its strategies
These actors are also affected by the organization’s strategic decisions, but they in turn exert pressure on the organization and even influence it to change its business strategies and actions.
45
established competitors in the microenvironment
The majority of organizations operate in competitive environments where established firms are expending enormous commercial efforts to conquer the market. The intensity of the rivalry between these firms depends on a number of factors, primarily:
- The level of growth of the industry
- The number of competitors in the industry
- The level of product differentiation and transfer costs.
Any organization operating in a sector where rivalry is intense should capitalize on its strengths to preserve its position or increase its market share by going after its competitors’ shares
46
suppliers in the microenvironment
The intensity of an organization’s dependence on its suppliers has a direct impact on the shared power between these two players in the market. A supplier’s ability to wield its bargaining power depends on various characteristics related to its position in its own industry, but also on transfer costs, customers’ contribution to its revenues, and its ability to vertically integrate its activities.
47
Customers in the mircroenvironment
Customers can pressure the organization to change its marketing strategies and actions to extract more value. Customers have greater negotiating power if they are few in number or if their purchases make up a large share of the organization’s revenue. Also, if the organization’s products and services are not sufficiently different from those of their competitors, transfer costs are low, and substitute products exist, customers will find they have more and more choice, which strengthens their position and weakens the organization.
48
New entrants in the microenvironment
If the organization’s market has good potential for growth and profitability, it will attract new competitors, such as firms from other industries looking to diversify their activities or new investors. These new players pose a threat to the market shares of companies already in the market, especially if they have a more attractive offer and target the same segment.
49
Substitute products in the microenvironment
Substitute products may be a threat to established firms. These products, which are different from the products usually marketed, manage to satisfy the same needs of the target by offering a more efficient alternative or a better price. The level of danger that these products present for established competitors will depend on the added value that consumers feel when comparing the products
50
What are the factors from the macroenvironment that influence the market
PESTEL
-political factors
-economic
-social
-technological
-environmental
-legal
51
How do political factors influence the market
Democratic values, political stability, and the level of liberalism of politicians are all factors that can encourage or slow foreign investment in a given sector or country. Each politician necessarily adopts an economic policy that has an impact on the activities of the country’s sectors. Some advocate nationalism by protecting local actors, while others sign free-trade agreements to improve competitiveness in the country’s economic sectors and strengthen its presence in foreign markets.
52
How do economic factors influence the market
Economic cycles generally involve periods of prosperity and recession. In good times, the economy is growing. Incomes are high, unemployment is low, and debt levels are low.
53
How do social factors influence the market
The social dimension of the macroenvironment is often defined as the society’s demographic and socio-cultural structure. The importance of analyzing information on population size, growth, and structure cannot be ignored. This information is essential because any marketing offer is aimed at a market, so the marketing manager must make sure there is high enough market potential for the product or service and that there is sufficient growth in the market for the offer to be profitable.
54
How do technological factors influence the market
We cannot ignore the impact that technological change can have on our lives, consumption habits, and economic activity. But of all the technological developments in recent decades, the advent of the Internet and new ways of accessing information seems to be the most notable change.
55
how do ecological factors affect the market
The ecological environment includes all environmental factors that can affect supply and demand in a given market. In this environment, such changes are brought on by regulations, for example, when governments announce new environmental protection measures, or by pressure from environmentalists and consumer groups invested in a cause.
56
how do legal factors affect the market
The legal environment relates to all the laws and regulations governing organizations’ activities. It is often closely linked to the political environment because usually politicians are called upon to intervene, protect, or liberalize certain industrial sectors.
57
How could a good marketing strategy use all the info on its internal and external environment to achieve its objectives and fulfill its mission
the choice of marketing strategy and sales activities is the result of an analysis of the opportunities and threats exerted by the external environment, taking into account the organization’s strengths and weaknesses in its sector of activity. this analysis is called the SWOT Analysis
58
What is the SWOT Analysis
Analysis of the strengths, weaknesses, opportunities and threats of an organization that may affect its activities in the short, medium and long term.
59
What is the role of the Marketing Information System (MIS)
An MIS is a set of resources and procedures for collecting and analyzing data from the organization and its environment and transforming this data into relevant information for marketing decisions.
60
what is the difference between primary and secondary data (marketing research)
primary data: collected according to a methodology developed by the organization
secondary data: by a third party according to a methodology that is not controlled by the organization but can be used to carry out a research mandate.
61
What is exploratory research
When an organization must make a decision that involves a critical issue for the organization (e.g., a drop in sales or low traffic in a store), and it does not understand the exact cause or know which decisions would resolve it.
62
What is descriptive research
When an organization wants to conduct a study for a specific purpose if its marketing problem has clear objectives that show what its information needs are.
this does not allow to make inferences based on cause-and-effect relationships between the phenomena observed
63
What is causal research
When a decision must be made requiring investigation of causal relationships between variables (cause-and-effect).
requires the use of experimentation as research methodology.
64
What are the stages of the decision-making process
-recognizing a need
-searching for information
-evaluating options
-purchasing decision
-making a purchase
-post-purchase evaluation
65
what are the characteristics of "recognizing a need"
The consumer feels a gap between their current and desired state.
66
What are the characteristics of "searching for information
Information can be sought in many ways (internally or externally) that will involve different levers of action for brand managers. The findings will depend on the sources of information and the amount of information required.
67
What are the characteristics of "evaluating options"
The previous step, the information search phase, leads to the identification of a number of options, or brands, which consumers retain as options for meeting their needs. This is called the consideration set.
68
What are the characteristics of a "purchasing decision"
It’s the final choice in the consideration set. For this, the consumer will pay attention to his or her decisive attributes. Two main decision models can then be adopted by the consumer to make his or her choice: the compensatory model or the non-compensatory model.
69
What are the characteristics of making a purchase
The act of buying can be particularly sensitive to situational variables, such as the consumer’s passing mood, the pressure to make a purchase within a certain timeframe, or whether the buyer is making the purchase alone or with assistance
70
What are the characteristics of "post-purchase evaluation"
The consumer judges whether it adequately meets the need that initiated the entire decision-making process. A crucial aspect of the post-purchase phase is consumer satisfaction or dissatisfaction—a judgement which does not depend solely on the perceived quality of the product or service.
71
What are the internal factors that influence purchasing behaviour
central psychological processes and psychographic variables
72
What are the central psychological processes
-motivation
-perception
-knowledge
-emotions
-attitudes
73
What are the psychographic variables
-identity and self-concept
-values
-lifestyle
74
what are the external factors that influence the purchasing behaviour
-reference groups: real or imaginary individual or group that influences an individual
-subcultures: generations, ethnic groups, regional subcultures, social classes
-culture: transmits a set of values to its members
75
What are the contextual/situational factors that influence buying behaviour
-mood: emotional state, positive or negative
-available time: time spent on purchasing decision
-physical purchasing environment: decor, smell, temperature
-social buying environment: presence/ absence of other consumers
76
what is segmentation
Segmentation is a marketing strategy that divides the market into sub-markets made up of homogeneous groups of consumers, users or customers with similar needs and behaviours, each group being different from the others.
77
What questions can be asked to effectively segment a market
-why: what benefits are our clients looking for
-where: where do they live
-who: who are they, what do we know about them
-how: where do they want to buy or use them
78
What are the 7 variables to consider in market segmentation
1. sociodemographics
2. geographics
3. psychographics
4. lifestyles
5. behavioural
6. volume and profitability
7. market
79
What are the 5 factors influencing targeting decisions
1. Size
2. Growth
3. Accessibility
4. Competitive situation
5. Cost adaptation
80
How does target size influence a company's profitability
The targeted segment must generate a sales volume that is large enough to be profitable for the company as well as its intermediaries or distributors.
81
How does growth influence a company's profitability
Profitability potential is also influenced by the expected growth of the chosen segment. For example, a small segment may have strong growth potential and prove to be more attractive in the future than it is today
82
How does accessibility influence a company's profitability
Sometimes companies do not target potentially promising segments because no distribution channel or communication media can reach them at an affordable cost.
83
How does the competitive situation influence a company's profitability
The number and strength of current and future competitors that target this segment.
84
How does the cost of adaptation influence a company's profitability
The less expensive is it to adapt to the target, the more likely it is that the adaptation will be profitable, other things being equal.
85
What are the four main types of targeting
-mass marketing
-segment marketing
-niche marketing
-customized marketing
86
what is mass marketing
Targeting the entire market and adopting the same marketing mix across the board. usually requires offering services or products designed to meet average needs, at an average or low price, with mid-range customer service, mass distribution and a corresponding level of communication.
87
what is segment marketing
Targeting one, some or all market segments and adapting the components of the marketing mix to each of them.
* Concentrated: The company targets a single segment (sometimes two), which may be large or small.
* Broad: The company can target three or more segments.
* Comprehensive: The company targets all (or almost all) market segments by adapting the components of the marketing mix to each segment.
88
What is niche marketing
Targeting a single, small segment of the overall market (representing no more than 10% of the market, usually less), and tailoring all marketing mix variables to it. The company becomes a specialist on the needs of this small segment. As a result, it acquires distinctive know-how and becomes highly effective.
89
what is customized/ personalized marketing
Adapting the company’s offer to each client. This type of segmentation is taken to an extreme, with each customer becoming a segment made up of one person.
90
What are the 3 types of positioning
-desired positioning
-actual positioning
-repositioning
91
What are the characteristics of desired positioning
Important marketing decision–the identity, personality and image that marketing managers want to give to their brand or company. It is the space they want these things to occupy in the minds of the consumer
92
What are the characteristics of actual positioning
If its brand awareness allows it, this is the position the company currently occupies, on the cognitive and affective levels, in the minds and hearts of its customers.
93
What are the characteristics of repositioning
If there is a discrepancy between the actual and desired positioning.
94
What elements are included in a positioning statement
For [targeted segment], [brand] is [concept] that [distinctiveness] and its [justification or competitive advantage].
95
How can a product become a competitive advantage (visible differentiation)
The product/service offered, its variety, quality, technology, warranty, format (or package), additional maintenance, repairs, installation, training, and after-sales services. Its customer service including reliability, speed, simplicity, flexibility, courtesy, employee know-how, and accessibility.
96
How can price become a competitive advantage (visible differentiation)
The price as such, as well as payment and billing terms, packages offered, credit terms, and volume discount terms.
97
How can place/distribution become a competitive advantage (visible differentiation)
Geographic coverage, the types of intermediaries that distribute the services or products and the image they are projecting; also, the business hours.
98
How can promotion/communication become a competitive advantage (visible differentiation)
The image conveyed by advertising and other forms of communication, promotional loyalty programs, the sales team, and direct marketing.
