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marketing strategy midterm 2 > midterm 2 > Flashcards

midterm 2 Flashcards

1
Q

ch 6 Cost advantages

A
  1. Variable cost advantage
    lower VC per unit, volume is the key, scale/scope/learning effects
  2. Marketing Cost Advantages
    advantages from product line extensions, marketing cost scope effect
  3. Operating Cost Advantage
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2
Q

ch 6 differentiation adv

A

1.Product advantage
features, performance, reliability, etc…
2. Service advantage
meaningful sustainable service advantage
3. Reputation advantage
superior brand equity, leads to customer attraction and premium price

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3
Q

ch 6 brand advantage and profitability

A

the stature of brand names adds a dimension of appeal that is an important customer benefit for many less price-sensitive, more image conscious consumers

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4
Q

ch 6 marketing comp advantages

A
  1. market share
    advantage based on market dominance rather than differentiation or cost, logic or habit
  2. product line
    broad product line = more prospective customers, emerging and growing stages
  3. channel
    build key relationship with distributors (control market access)’
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5
Q

ch 6 competitive strategy based on a knowledge advantage (4)

A
  1. customer reactive strategy (overreaction to customer demands due to limited competition knowledge — extensive customer knowledge, limited competitor knowledge)
  2. oblique strategy (leverages a knowledge advantage with respect to customers and competitors - extensive customer knowledge, extensive competitor knowledge)
  3. inside the box strategy (based on minimal or limited knowledge of comp and custs)
  4. compeitor reactive strategy (overreaction to competitor moves due to limited customer knowledge— extensive comp knowledge)
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6
Q

CH 6 competitor intelligience (CI) def and sources

A

developing a strong competitive position is critical , use perceptual maps (based on surveys of cust ratings between brand, sets of comps, and ideal product ratings), CI opens the dor for well timed effective strats
sources of CI: trade press, trade shows, financial reports, industry reports, customers, suppliers

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7
Q

ch 6 industry analysis components (5)-bc cps

A

barriers to entry/exit: technology, legal, low cost manufacturer, specialized assets, strategic importance

customer buying power: size, concentration

supplier selling power: switching costs, commodity vs specialized

product substitutes

competitor rivalry : intensity, strength

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8
Q

ch 6 competitive forces that shape comp position and profitability —summary

A

competitive advantage (cost advantage, diff, marketing advantage)
competitor intelligence (perceptual map, comp benchmarking, intelligence sources)
industry attractiveness (comp entry/exit, buyer/supplier power, subs/price rivalry)

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9
Q

ch 6 comp benchmarking steps

A

identify a key area of competitive weakness
identify a benchmark company
track the benchmark company’s process advantage

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10
Q

ch 7 branding & benefits

A

branding: name, symbol used to identify the course of a product
benefits of branding: high brand awareness, emotional connection, brand loyalty, price premiums, product line extensions

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11
Q

ch 7 market share & product pos

A

market share=product position * marketing efforts

where product position is product differentiation, price, product breadt, new products, service quality, brand image

& marketing effort is sales force, physical distribution, retailing and merchandising, customer support, sales promotions, media advertising

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12
Q

ch 7 name product positioning strategies

A
  1. differentiation and positioning
  2. branding and brand mgmt strats
  3. brand and product line strategies
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13
Q

ch 7 explain differentiation and positioning 4 ways

A
  1. product differentiation (quality, performance, reliability)
  2. service differentiation (reliability, extended service, reputation)
  3. brand diff (brand status)
  4. low cost of purchase (low price or low transaction cost)
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14
Q

ch 7 explain branding and brand mgmt strats

A

brand identity : market orientation
brand encoding: names, images, colours, founding names, fictional names
brand assets and liabilities
brand equity

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15
Q

ch 7 explain brand and product line strats

A

umbrella and flanker brands
product line extensions
bundling and unbundling
product elimination

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16
Q

ch 7 brand assets and brand liabilities

A

brand assets: brand awareness, emotional connection, brand loyalty, product line extensions, price premium

brand liabilities: customer dissatisfaction, product or service failures, questionable practices, poor record on social issues, negative associations

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17
Q

ch 7 brand name starts

A

brand name strats: founder name, functional, invented, experiential, evocative

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18
Q

ch 7 broad vs narrow product line

A

broad product line: more selling ops for sales force and channel members, potential for higher share of waller, upsell potential, more profitable in emerging and growing markets
narrow product line: must be focused in marketing efforts

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19
Q

ch 7 product line development , product line extensions names

A
  1. umbrella brands
  2. flanker brands
    how do flanker brands benefit from umbrella brands? brand awareness, known quality, market reach, product mix
    new brands
  3. pl extension: vertical brand-line extensions: same market, new flavours (kit kat extension overdose)
    horizontal brand-line extensions : adding complimentary products
    new product-market brand extensions L enter new markets to exploit brand rep (honda)
    co-branding: leverage a strong brand with another (tide/febreeze)
20
Q

ch 8 cost vs market based pricing

A

cost based pricing: start with cost and desired margin and make up along channel to a customer selling price

market based pricing : price is set based on a comp advantage and value and discounts and costs deducted to arrive at company margin

21
Q

ch 8 value based pricing (4) VPPC

A
  1. value in use pricing (based on CLC costs, acquiring owning using maintaining and disposing)
  2. perceived value pricing (based on value provided when comparing price and benefits relative to competitors) aka how much of a price premium can business obtain and deliver meaningful customer value
  3. performance based pricing (based on customer preferences for different levels of price and performance/positioning)
  4. customerization value pricing (unbundle product features and price each one, customers then select features and price, value package savings)
22
Q

ch 8 price margin mgmt

A

mckinsey waterfall (costs that cut into the company’s bottom line, discounts/promotions/etc)

pocket price (the amount the business receives)

pocket price bandwidth (diff channels = diff BW, look beyond avg pocket price, identify needless price leakage)

23
Q

ch 8 skim penetration

A

high at first then lower
favourable conditions: considerable differentiation, quality sensitive customers, sustainable advantage, few competitors, few ssubsitutes, difficult compeitor entry

24
Q

ch 8 penetration pricing

A

low at first
favourable conditions: no or limited differentiation, price sensitive customers, no sustainable advantage, many competitors, any substitutes, easy competitor entry ‘

25
Q

ch 8 single segment pricing, multi segment pricing

A

single segment pricing : value based strategy, total cost approach, L-C savings at premium price

multi-segment pricing: used during growth, maximize for multiple customer segments

26
Q

ch 8 plus one pricing, reduced focus pricing, harvest pricing

A

plus one pricing (mature market): companies eventually copy features, comparable to competition in every aspects. +one ie volvo safety, lexus performance

reduced focus pricing: mature stage, price increases,, reduce volume but increase margin

harvest pricing: decline stage

27
Q

ch 9 channel map

A

channel map: a diagram of the types of purchase points a business uses

each channel produces a diff level of sales revenue and costs (transaction costs, commissions, discounts to intermediaries)

each channel to the market produces a diff level of sales revenue and has its own set of costs. the channel costs may include discounts to intermediaries, transaction costs, and commissions —> pocket price

28
Q

ch 9 three areas of performance will the choice of channel impact?

A

customer value, sales revenue, profitability

29
Q

ch 8 channel must do well in (3)

A
  1. customer reach (volume): chosen based on nature of business, plc stage, target market
  2. operating efficiency (cost to serve): a)direct channels=higher margins but the business absorbs the cost of channel mgmt and all marketing costs. b)indirect=lower margins but lower channel mgmt and marketing costs
  3. service quality (retention): direct=control of contact points, indirect forces the business to depend on intermediaries
30
Q

ch 9 direct channel systs

A

best option for sales comms and customer interaction but the costs are high and increasing
even when a firm uses a mixed approach they usually maintain their key profitable customers under a direct system

31
Q

ch 9 indirect channel systs

A

firms use them bc they cant serve smaller customers with a direct appproach profitably
when to used mixed channel systs? when distinct target markets need to be served simultaneously, often used with specialized and technology products that require local availability of service

32
Q

ch 9 alt b2b marketing channel (also explain VARS and OEMS)

A

prefer a direct approach BC more control and specialized knowledge, serve clients needs better
value added resellers (VARs): purchase a variety of components from various manufacturers and sell them as a system (bundles)
original equipment manufacturers (OEMs): creates a new product from manufactured components it buys (GM)

33
Q

you’re doing great!

A

yay

34
Q

ch 9 how channels can build value (3)

A

delivering product benefits : product quality, product assortment, product form
delivering service benefits: after-sale services, availability/delivery, transaction services
improving cost efficiency: ex. making a product readily available

35
Q

ch 9 3 comp advantages from channel systems

A

a. sales force advantage: better, more informed, enough to properly service the market
b. sales productivity: built when there are high quality products, broad line of products, and efficient sales admin systems
c. distribution advantage: share of distributors outlets

36
Q

ch 9 leveraging digital marketing channels

A

the ability a world of prospective customers at a low marketing cost has led nearly every business, large and small, to invest in digital marketing

37
Q

ch 10 objectives of marketing comms

A
  1. brand image comms (establish an emotional connection—impact=attitude)
  2. brand information comms (interest arousing, motivate target to retain and acquire more info—impact=cognitive)
  3. brand action comms (seeking customer action/buy or try the product—impact=behaviour)
38
Q

ch 10 social media marketing objectives and outcomes BIP

A
  1. brand building : deepen customer relations ships and engage in community conversations
  2. information exchange: share experiences, encourage word of mouth, understand product usage and benefits
  3. problem solving: gather and provide customer feedback, resolve customer complaints
39
Q

ch 10 message frequency

A

the average number of times an audience is exposed to a message over a period of time , links to advertising awareness

40
Q

ch 10 CRI, effective comms do … (3)

A

effective comms…. (1) build awareness (2) creating comprehension among T.M (3) creating an intent to purchase among a good portion of the target

Customer response index=% exposed * % aware * % comprehend * % not interested

41
Q

ch 10 cause of low levels of customer response (5)

A

1.poor media selection and/or limited exposure frequency -low ad exposure
2.ineffective ad content and/or insufficient ad frequency -low and comprehension
3.insufficient ad frequency and or ineffective content -low ad recall
4.weak value proposition and or insufficient ad frequency low intentions to take action
5. insuff ad frequency and or action not clearly specified -low levels of desired action

42
Q

ch 10 building customer awareness and comprehension to target market (3)

A
  1. media selection
    reach-% of target market that will be exposed to the message at least once in a given period
  2. Message frequency
    too many=irritation, too few=low awareness and comprehension, concentratedVSdistributed
  3. ad copy
    based on target market needs, familiar sits, integrated with benefits
43
Q

ch 10 push comms

A

directed at intermediaries (market coverage and distributor push)

sales incentives, channel financing, coop advertising, channel marketing
audience: channel customers and influencers
push objectives: build channel interest, purchase, inventory, and marketing efforts

44
Q

ch 10 pull comms

A

directed at consumers (customer preference and loyalty)

media advertising, social media, sales promotions, direct marketing
audience: customers and potential customers
pull objectives: build end consumer awareness, loyalty, purchase, interest

45
Q

ch 10 advertising elasticity

A

advertising elasticity=%change sales / % change ad expense

percent change in sales on volume per 1 percent change in advertising effort
PLC-introductory (build awareness, comprehension and interest, demand might be small)
growth-greatest op for sales growth using ads

marketing strategy midterm 2 (1 decks)

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