Grundbegrifffe

Question 1

Corporate Vision

Answer 1

Determination of the aspirational position of the corporation in the relevant market.

Question 2

Corporate Mission

Answer 2

Determination of the corporate purpose/value added to society/ relevant market.

Question 3

SWOT-Analysis

Answer 3

Structured analysis of the initial situation of a Corporation: Its aim is to identify and evaluate the internal and external factors of a Corporation, that are favorable and unfavorable to achieve its overall objectives.

Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others

Opportunities: elements in the environment that the business or project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project

Question 4

Market Analysis

Answer 4

Identification of potential business fields within the relevant market as a whole

Question 5

SBU growth strategy (Ansoff)

Answer 5

Market penetration:
Intensified product usage of current customers
Gaining customers from competitors
Gaining customers that rejected the product category this far

Market development:
Gaining new consumers within extended target group (domestic)
Extending the target group geographically (abroad/international)

Product development:
Product differentiation: new brand variants Product innovations

Diversification:
Horizontal Diversification
Vertical Diversification
Lateral Diversification

Question 6

Market segmentation

Answer 6

Identifying market segments according to specific and relevant criteria.

As such, a market is divided into distinct groups of customers that are similar with respect to particular aspects.

Question 7

Kinds of Segmentation criteria regarding consumer characteristics

Answer 7

Sociodemographic criteria (Gender, Age, Family status, Income, Education (level), Job)

Geographic criteria (Macro- and/or Micro segmentation)

Psychographic criteria (Lifestyle, Attitudes)

Question 8

Kinds of Segmentation criteria regarding behaviour characteristics

Answer 8

Product usage (Usage situation, Usage status (buyer/non-buyer), Usage frequency (low, medium, heavy)

Brand loyalty (in respective product category)

Preferred channel

Price sensitivity

Question 9

Targeting

Answer 9

“Targeting“ means the selection of identified segments, that a company can serve the best.

Question 10

Market differentiation

Answer 10

Market differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors’ products as well as a firm’s own products.

Question 11

Positioning

Answer 11

Defining the aspirational, unique perception of a brand’s core value added, seen through the eyes of its target group.

Question 12

POP

Answer 12

Points of Parity

Minimum criteria to actually serve as a credible member of a (sub-)category, in the perception of the target group.

Question 13

USP

Answer 13

Unique selling proposition in comparison to competition / Competitive advantage / Reason to buy

Question 14

Product Differentiation (examples)

Answer 14

• physical product differentiation (features, benefit, ingredients, performance quality, shelf life, design,
  origin/heritage, original)
• product-services-differentiation (consulting, delivery, installation, maintenance, repair)

Question 15

Price Differentiation (examples)

Answer 15

• price level, prestige
• rebates, conditions
• payment methods

Question 16

Placement Differentiation (examples)

Answer 16

• choice of special channels

- trade channel expertise & image, service level

Question 17

Promotional / Lifestyle Differentiation (examples)

Answer 17

• content of message

- atmosphere (fun, humor,..)

Question 18

Differentiation via target group. (examples)

Answer 18

• gender
• age
• lifestyle

Question 19

Differentiation Via Usage (examples)

Answer 19

• time of day of usage

- usage occasion

Question 20

Success criteria for the selection of a USP

Answer 20

• USP significance for the target group
• Superiority and differentiability of the USP
  in comparison to competition
• USP novelty
• Easy to be communicated (a few words, or an image)
• Profitability for the producer
• Affordability for the user (the target group)

Question 21

Branding

Answer 21

Comprises all means to making a brand visible and tangible and comprehensive to its target group.

Question 22

Revenue/Yield Management

Answer 22

Practice of pricing products or services to make the most money by offering the right price at the best time.

The goal is to maximize revenue from a fixed, time-limited resource such as airline seats, hotel room reservations, or advertising inventory.

Question 23

Dynamic Pricing

Answer 23

Pricing strategy in which businesses set flexible prices for products or services based on current market demands.

Question 24

Static Pricing

Answer 24

Prices are fixed and independent of current (short-term) market demands.

Question 25

Brand Extension

Answer 25

A marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off.

Question 26

Line Extension

Answer 26

A product line extension is the use of an established product brand name for a new item in the same product category. Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes.

Question 27

Process of Product Innovation Management

Answer 27

1. Idea generation
2. Idea screening
3. Idea realization
4. Market test
5. Market launch