Strategy Flashcards
(38 cards)
What is a planning model?
strategic decisions are reached by use of a sequential, planned search for optimum solutions to defined problems. This process is highly rational and is fuelled by concrete data.
What does the McKinsey 7S model demonstrate?
How the defined 7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be connected together to achieve effectiveness in an organisation.
What are the strengths of the McKinsey 7s model?
Establishes a simple and effective framework with which to analyse both the formal and informal operations of an organisation
What are the strengths of VRIN?
Provides a simple and easy to use set of criteria to establish which assets are most valuable in developing competitive advantage
• Directs strategic planning to focus on the development of future resources that can
take advantage of the VRIN characteristics
What is a push strategy?
A push strategy is when an organisation promotes a service or product to retailers and distributors in order to encourage them to ‘push’ or promote the product to the end-user. The main aim is to get the product into the hands of the consumer with little to no advertising effort
Where do push strategy work well?
• There is low brand loyalty
• Many acceptable substitutes are available in the market
• Relatively new products are to be launched
• The product purchase is unplanned or on impulse; and
• The consumer is familiar with and has reasonably adequate knowledge about the product
What is a pull strategy?
A pull strategy involves communicating directly with the end customer or consumer to attract them (or ‘pull’ them) to the retailer and distributor in order to purchase the product. Costs tend to be higher for a pull strategy because it usually entails a mix of advertising and sales promotion to
a mass market. This spend is required to raise awareness and stimulate demand for a product or service.
Where do pull strategies work well?
• It is possible to differentiate the product on the basis of real or emotional features
• Brand consumers show a high degree of involvement in the product purchase
• There is reasonably high brand loyalty; and
• Consumers make the brand choice decision before they go to the store
What is the global adaptation strategy?
When entering a foreign market, one must consider all the environmental factors and constraints (language, climate, race, occupation, education, tastes, laws etc)
Constraints around cultural differences in taste, needs, wants legal systems.
Companies should find out how they need to adjust their whole marketing strategy (make, market and sell approach) to fit the new market demands.
Customisation is the way forward
What are some benefits of market segmentation?
Better satisfaction of customer needs
Growth in profits
Revenue growth
Customer retention
Targeted communications
Innovation
Segment share
Competitive advantage
What are some examples of customer differences?
Their needs, wants, interests, preferences and expectation.
Benefits they seek from the product
Buying behaviour
Ability or willingness to spend
Media preferences
What is a market segment?
A customer group that exhibits a shared set of specific needs, wants, buying behaviour and other characteristics, which distinguish it from other customer groups.
Each segment can be targeted and reached with a distinct marketing mix
What are some factors in choosing a strategy?
Budget
What the customers want
History (A previous strategy may not be useful now)
Restrictions
Competition (What do they do?)
What did Professor McDonald identify as the 5 steps of segmentation?
- Understand how your market works. This involves defining the market, sizing it and
identifying who makes the decisions - List what is bought, including where, when, how, and the different applications of the
product or service - List who buys using descriptors such as demographics and psychographics
- List why they buy, especially the benefits sought
- Finally, search for groups with similar needs. These will be the final market segments
What are factors of market attractiveness?
• Size
• Growth rate
• Profitability
• Pricing trends
• Intensity of competition
• Barriers to entry
• Segments
• Distribution structure
• Volatility
What are factors of company strength?
• Strength of competencies
• Market share
• Share growth
• Customer loyalty
• Cost proposition
• Profit margins
• Perceived quality
• Market knowledge
What is a media strategy
A media strategy is a type of strategy that implements the use of a particular media to achieve advertising or marketing goals. Media strategies are frequently used in advertising campaigns to increase brand awareness and interest in a company’s products or services
What are the 7 P’s of marketing tactics?
Product, price, promotion, place, people, process, physical evidence
Success of any project implementation will be dependent on a range of factors which may include…what?
• The quality of the advance planning
• Project team management
• Management of key stakeholders
• Management of change during implementation
• Effective risk management
• Quality of project reporting
• Effective communications within and from the project team
• Creation and maintenance of good records
What is a strategic measure?
is a metric that provides a higher-level view of the effect that marketing has in an organisation, often expressed in financial terms such as ROI or EVA (Economic Value Added) and measured relatively infrequently (quarterly, annually)
What is an operational measure?
is a metric that provides insight into the performance of marketing mix tactics and approaches and is usually linked to Critical Success Factors. They are measured more frequently often on a weekly or monthly basis
What is an activity measure?
the basic measure of marketing activity which records, registers and counts primary activities associated with the response to marketing strategies and as such is measured the most frequently from each day down to each
minute
What is earned value management?
a way to measure project performance by monitoring three fundamental values for each task (the budgeted cost, the actual cost and value earned)
What is the budgeted cost?
– this is the value assigned at the outset for each of the tasks scheduled (BCWS) in the plan, based on the costs of resources assigned to complete the tasks, plus any additional costs associated with them. As an example we might say that the budgeted cost of work scheduled was £10,000 spread equally over 4 months and if we are measuring at the end of month 2 the BCWS is £5,000.
