Week 2- MKTG305 Flashcards
(31 cards)
What is the origin of the concept of strategy?
Strategy arose from a military context focusing on employing forces skillfully for relative superiority.
What are the five key elements critical to marketing strategy?
- Leads to a differential advantage over competitors
- Sustainability
- Ability to enhance firm performance
- Customer perspective
- Guides decisions and actions
What are the benefits of a clearly stated corporate mission?
- Shared sense of direction
- Relevance
- Achievement among employees
- Positive image of the firm
What questions should a corporate mission statement answer?
- What is our business?
- What are our customers?
- What kinds of value can we provide to stakeholders?
What criteria are essential for defining a corporate mission?
- Customer need to be satisfied
- Functions performed to satisfy that need
- Specific customer groups
- Products or technologies to concentrate on
- Specify domain of operation
What do core values provide an organization?
- Direction and purpose
- Clarity on business objectives
What are the implications of unethical practices in marketing?
- Damage trust between a firm and its suppliers/customers
- Disrupt long-term exchange relationships
- Likely loss of sales and profits over time
What must corporate objectives contain to be useful?
- Performance dimension or attribute sought
- Measure for evaluating progress
- Target or hurdle level to be achieved
- Timeframe for accomplishment
What is the primary objective of management in enhancing shareholder value?
- Capital investments
- Acquisitions
- Business strategies
What is Market Value Added (MVA)?
A measure sometimes used to express objectives aimed at increasing shareholder value.
What are the consistent customer-focused objectives?
- Satisfaction
- Retention
- Loyalty
What is a competitive strategy?
A strategy developed for each division or business unit that converts unique resources into customer value.
What is a sustainable competitive advantage based on?
- Resources that are rare, valuable, inimitable, and not substitutable.
What are the two major directions for corporate growth strategies?
- Expansion of current businesses and activities
- Diversification into new businesses
What is forward vertical integration?
When a business moves downstream in the product flow, such as acquiring a distributor or retail outlet.
What is related diversification?
The development or acquisition of a business that does not share products or customers but contributes to internal synergy.
What is unrelated diversification?
Involves two businesses with no commonalities in products, customers, or expertise.
What does ‘coopetition’ refer to?
Competitors cooperating in specific areas through joint investment.
What are knowledge-based synergies?
Enhancements in performance through the transfer of competencies, knowledge, or customer intangibles.
What are the three options for a corporate branding strategy?
- Serve as the brand name for all products
- Dual branding strategy
- Unique brand for each product offering
What are the ideal characteristics of Strategic Business Units (SBUs)?
- Homogenous set of markets
- Unique set of product markets
- Control over factors for performance
- Responsibility for profitability
What are Porter’s three competitive strategies?
- Overall cost leadership
- Differentiation
- Focus
What is the fourth competitive strategy added to Porter’s framework?
Best-cost provider, combining low cost and high differentiation.
What is the focus of a prospector business strategy?
Growth through the development of new products and markets.
