Unit 1: STRATEGIC MARKETING

Question 1

WHAT IS STRATEGIC MANAGEMENT?

Answer 1

Is a PROCESS, which aims to achieve SUSTAINABLE COMPETITIVE ADVANTAGES and defend it against its own rivals using ANALYSIS, PLANNING, CONTROL, ORGANIZATION AND IMPLEMENTATION.

Question 2

WHAT IS MARKETING MANAGEMENT?

Answer 2

Is the art of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating customer value.

Question 3

WHAT ARE THE 4 Ps?

Answer 3

Product, Place, promotion and price

Question 4

WHAT ARE THE 4 Cs?

Answer 4

Consumer wants, convenience, communication, cost to satisfy

Question 5

WHAT ARE THE NAMES OF THE DECISION LEVELS IN STRATEGIC PLANNING?

Answer 5

Corporate level, Strategic Business Unit level, Functional level

Question 6

DESCRIBE THE CORPORATE LEVEL! (Plan, who is in charge, what are contained)

Answer 6

Is the top-level of decision making.
The plans are usually created by selected strategic teams such as CEO.
This plan usually spans a 3-5 year period.
It containes:
- mission
- vision
- values
- objectives
To lead the company in the right direction.

Question 7

DESCRIBE THE STRATEGIC BUSINESS UNIT LEVEL! (2 points)

Answer 7

1. As every unit has its own objectives, the goal is to achieve them in different levels with different strategies.
2. It helps increase buy-ins and improves ownerships.

Question 8

DESCRIBE THE FUNCTIONAL LEVEL! (3 points)

Answer 8

1. Where the decisions are made by the employees.
2. At this level they deal with fairly restrictive (akadályozó) plans.
3. Day-to-day work

Question 9

WHAT IS UGC?

Answer 9

User generated content which is created by someone who is not an official representative of your business.

Question 10

DEFINE WHO A BUYER PERSONA IS!

Answer 10

Detailed description of someone who represents the company’s target market.
Age, location, interests, social media, stage of life, language

Question 11

WHAT IS KPI?

Answer 11

Key performance indicator
A measurable value that shows the organization’s progress toward achieving key business objectives.

Question 12

WHAT IS MARKET INTELLIGENCE? WHAT DOES IT CONTAIN? (3 points)

Answer 12

1. Everyday data that is relevant (fontos) to marketing effort.
2. The ability to stay ahead of the market and have a comprehensive understanding of your competitors.
3. EVALUATE TACTICS (kiértékel)

Question 13

WHAT IS ANSOFF GRID MATRIX? WHAT DOES IT SHOW? WHAT WE USE IT FOR?

Answer 13

Is a two-by-two framework used by management teams to:
- HELP PLAN and
- EVALUATE GROWTH INDICATIVES.
Stakeholders often use it to conceptualize the level of the risk.
Products and markets.

Question 14

WHAT ELEMENTS AN ANSOFF MATRIX HAS?

Answer 14

First of all, we talk about existing and new products and existing and new markets.
1. Market penetration: existing products to existing markets
2. Market development: existing products to new markets
3. Product development: new products to existing markets
4. Diversification: new products to new markets

Question 15

DESCRIBE THE MARKET PENETRATION! WHAT IS THAT, WHAT ARE THE GOALS AND WRITE AN EXAMPLE.

Answer 15

When a company sells existing products in existing markets.
Goal: increase market share and use rate
How? Decreasing the price to attract new customers
Example: customer packed goods business that sells int grocery chains

Question 16

DESCRIBE THE MARKET DEVELOPMENT!

Answer 16

When a company sells existing products to new markets.
It doesn’t require significant investment in research and development
Would like to enter a new market or foreign market
Example: Lululemon (sports brand) who would like to expand aggressively to Asia.

Question 17

DESCRIBE THE PRODUCT DEVELOPMENT

Answer 17

When a company sells new products to existing markets.
This company has the ears of a particular market or target group (brand loyalty)
Investing in Research and Development
Example: beauty brand which produces and sells hair products for men aged between 18-25

Question 18

DESCRIBE DIVERSIFICATION AND ITS 4 CATEGORIES EACH!

Answer 18

When a company sells new products to new markets. This is the highest level of risk because it requires both market and product development.

1. HORIZONTAL:
   - method that adds new products to company’s lines that are meant to serve existing customers.
   - EXAMPLE: retail company manufactures their own clothing line and sells it in stores, they add a few styles.
2. VERTICAL:
   - when you move up or down the supply chain of your industry and take control of more stages
   - you manufacture your own fabrics
   - EXAMPLE: ZARA
   - reduce costs and improve quality
3. RELATED:
   - adding new products or services that are similar to existing ones.
   - car manufacturer diversify into electronic vehicles
4. UNRELATED:
   - adding new products or services that are dissimilar to the existing ones.
   - EXAMPLE: media company diversify into hospitality

Question 19

WHAT ARE THE 4 CATEGORIES OF THE CONSOLIDATION MATRIX?

Answer 19

1. RETRENCHMENT
2. MAINTAINING
3. PRODUCT CONTRACTION
4. BUSINESS CONTRACTION

Question 20

DESCRIBE RETRENCHMENT IN CONSOLIDATION MATRIX!

Answer 20

Withdrawal of products from the weakest segments. Opposite of market development

Question 21

DESCRIBE MAINTAINING IN CONSOLIDATION MATRIX!

Answer 21

When there are no changes in the current strategy

Question 22

DESCRIBE THE PRODUCT CONTRACTION IN THE CONSOLIDATION MATRIX!

Answer 22

When the company eliminate some products. Opposite of product development

Question 23

IDENTIFY THE TYPES OF COMPETITIVE ADVANTAGES (3)

Answer 23

1. Overall cost leadership
2. Differentiation
3. Focus

Question 24

IDENTIFY THE OVERALL COST LEADERSHIP! Example included

Answer 24

Achieve the lowest production and distribution costs.
EXAMPLE: IKEA
Looking for suppliers who can produce subassemblies (egységek) and customers who assemble (összegyűjt) the products themselves.

Question 25

IDENTIFY DIFFERENTIATION AS A COMPETITIVE ADVANTAGE!

Answer 25

Increase profit without reducing prices. Develop a unique product compared to its competitors. EXAMPLE: APPLE-› premium brand image, minimalist design

Question 26

IDENTIFY FOCUS AS A COMPETITIVE ADVANTAGE!

Answer 26

When a company is picking one or more narrow segments. Offering high quality or low costs For example: vacation resorts: specific customer needs, such as room design, activity selection

Question 27

WHAT IS A BLUE OCEAN? TELL AN EXAMPLE ALSO

Answer 27

A pursuit of differentiation and low cost to open up a new market space and create demand. - The unknown market space - Competitions are irrelevant because the rules of the game are waiting to be set - vast, deep, powerful FOR EXAMPLE: Yellow Tail (wine brand) became the fastest growing wine brand in US history How? The company recognized that most of the wine brands are competing in red oceans and with reducing the elements that the industry competed on they could create a blue ocean. Created a drink which is sweet enough to appeal to the masses

Question 28

WHAT IS RED OCEAN?

Answer 28

Industries in existence today - THE KNOWN MARKET SPACE - Industry boundaries are defined and accepted - Companies try to outperform their rivals. - As the market space get crowded profits and growth are reduced. Products become commodities (árucikkek) and it leads to a bloody competition Fast food chains

Question 29

DESRIBE THE STAR IN THE BOSTON CONSULTING GROUP MATRIX

Answer 29

Is with high market share and high market growth. Is really profitable and worth investing so they at least maintain their market share or even continue to grow.

Question 30

DESCRIBE THE QUESTION MARK IN THE BOSTON CONSULTING GROUP MATRIX

Answer 30

Is with low market share but high market growth. Not very profitable but with the right investment you can turn it into cash cow or star.

Question 31

DESCRIBE THE CASH COW IN THE BOSTON CONSULTING GROUP MATRIX

Answer 31

High market share and low market growth. Products are already profitable with little growth potential in the market. The revenue generated from cash cows can be invested in starts or question marks.

Question 32

DESCRIBE THE DOG IN THE BOSTON CONSULTING GROUP MATRIX

Answer 32

Is with low market share and low market growth. Do not have the potential to become profitable.

Question 33

WHAT IS GE-MCKINSEY MATRIX?

Answer 33

This is a 9-box-matrix that indicate whether the company should invest in a product, harvest/divest it or do a further research on the product and invest it if there’s still some resources left (hold, protect) The company can judge a unit by two factors: - the attractiveness of a company and the competitive strenghts.