Strategic Marketing Flashcards
(30 cards)
What is the Business Mission? How can it be visualized, and what does it influence?
The Business Mission is the purpose of the company and which impact it wants to make. It can be visualized at the top of the pyramid and other actions related to the SBU can be taken always referring to the business mission.
What is a Strategic Business Unit? Can you provide me with an example?
A Strategic Business Unit for Ikea is their different type of living spaces. It could also be seen as their main product chains (Sweatshirts, jeans etc).
What is the system of the company objective composed of?
The system of the company objective is a pyramid which has at the top Business Mission, Company objectives (increase revenue by X% next year), SBU and Functional objective for each department/product and finally Instrumental Objectives.
What are instrumental objectives within Strategic Marketing? Can you provide me with an example?
An Instrumental Objective refers specifically to the 4 Ps (Product, Placement, Promotion, Price). The goals might be to be the most affordable product in the market.
According to most german schools, marketing objectives can be divided into three categories…
Potential > the aim is generating a potential new costumer that in the future might convert (ex. satisfaction, familiarity, awareness)
Success > equivalent of loyalty of the costumers, increased purchasing frequency
Finance > connected to the previous goals > leads to business profit
What is the PIMS project and what did it discover?
The PIMS project (Profit Impact of Marketing Strategy) studied what makes an SBU (Strategic Business Unit) successful. This also studied how it impacts ROI and ROS ( Return of Sales).
Why is Investment Intensity negatively correlated with ROI (Return of Investments)?
Investment Intensity means that we might encounter ourselves in market that needs big investments upfront for machinery and that will profit only later.
What are elements that influence ROI?
Elements tha influence ROI:
Investment intensity
Market share (how much do I own of the market)
Quality of the product (if I have a better product I can demand more money for it)
What is the Experience Curve Concept?
The Experience Curve concept argues that the more I produce the more I become experienced and thus, the more profit I can obtain while keeping fixed costs not-proportionate but the same as before.
How is Ford T model an example of the Experience Curve Concept?
At the time of the Ford T model car were not yet accessible to the population. By choosing a model that could be replicated in large quantities but NO model variation (only black), Ford increased the market share.
What is the Life Cycle Model and which phases is it composed of?
The Life Cycle Model describes the different phases and attitudes one must take on according to which phase a certain product encounters itself into. It is composed of the following phases: Introduction, Growth, Maturity and Saturation.
In the Life Cycle Model, how does the range of products vary depending on which phase we encounter ourselves in?
In the Introduction and Growing phase we find a small product range, Maturation has the highest diversity in product models and saturation has both an attempt to diversify but also a focus only on products that truly bring us to profit.
What is the problem between the Life Cycle Model and the new development of cellphones?
Because of the shorter duration of the Life Cycle of cellphones, many companies implement subtle changes to their product and outsource this production to chinese counterparts for a faster 5 months outcomes.
Which factors have to be accounted for in a Strategic Marke Analysis?
1) Global environmental factors (like politics)
2) Relevant market (buyers to target, competitors and general dynamics)
3) Company situation within the respective market (do they like my product? are they satisfied?)
How did a company like Henkel implement a strategic marketing/business policy during economic recession?
Instead of raising their prices like other brands, Henkel maintained their prices and decided to optimize their process, lower their costs and change suppliers to still be ACCESSIBLE.
What is market segmentation?
Market segmentation means clustering some different individuals within their market preferences and purchasing tendencies. Although they might be different, they have a the same approach to our product. Eg. Some costumers are more open to marketing, other need costant marketing for their activation to happen.
When can we apply market segmentation?
Market segmentation can be applied when it makes economic sense, when this target can be reached and if it has a stability over time (no ever changing individuals)
What is the STP-Concept?
Segmentation - Targeting - Positioning
Segmentation = to split heterogeneous group into categories
Targeting = selection of the segments
Positioning = Differentiate marketing programs for each segment
What questions does Innovative Orientation ask itself in the field of marketing?
Innovative orientation studies and ponders how to prioritize certain products or others, depending on their performance and positionality.
What are the 4 strategies to market a product if I am looking at the innovation based classification?
The 4 strategies are:
- Market penetration (if everything is existing)
- Product Development (if the product is new but there is an existing market)
- Market Development (the product is the same but the market is evolving and new)
- Diversification (new market but also new product)
What is the Ansoff Matrix?
The Ansoff matrix defines the different categories of market strategy if we are specifically looking at the innovation of the products/markets.
Which questions can we ask ourselves strategically speaking when we need to consider the costumer relationship management?
We need to ask ourselves:
1) How do I create and how do I define loyalty? Is loyalty to the brand, people or quality/reliance of the services?
2) Do they have discounts for their loyalty or similars?
Which categories can we have in terms of price positioning strategies?
We can have a economy, mid-priced and premium (high quality and high price) but there are EXTERNAL products that fall under FAVORABLE or UNFAVORABLE price-ratio.
Which question can one ask himself when pondering about the marketing mix strategies?
Ex. How broad or detailed should the product range be? Which quality level do we want to achieve with each product? How should the product-price be positioned?
