Marketing week 3

What are the two dimensions of the marketing environment?

Macroenvironment and Microenvironment.

What is the macroenvironment?

Broad external forces that affect all companies.

What is the microenvironment?

Actors that directly affect the company.

What are the five macroenvironment forces?

Technological, Economic, Political & Legal, Physical Environmental, Cultural & Social.

Who are the main actors in the microenvironment?

Customers, Competitors, Distributors, Suppliers, Strategic Partners.

What are examples of technological forces?

R&D, information management, communication channels, smart cities.

What are examples of economic forces?

Interest rates, exchange rates, inflation, branding.

What are examples of political and legal forces?

EU laws, national laws, competition law.

What are examples of physical environmental forces?

Climate change, pollution control, energy conservation, recycling.

What are examples of cultural and social forces?

Demographic changes, cultural differences, consumer influence.

What is environmental scanning?

Monitoring environmental changes to identify opportunities and threats.

What are the five responses to environmental change?

Ignorance, Delay, Retrenchment, Gradual strategic repositioning, Radical strategic repositioning.

What is retrenchment?

Reducing activities and costs to survive.

What is gradual strategic repositioning?

Slowly adapting strategy over time.

What is radical strategic repositioning?

Major changes in strategy and operations.

What are channel intermediaries?

Organizations that help move products from producers to customers.

How do channel intermediaries add value?

By improving efficiency, accessibility, specialist services, and matching producer and consumer needs.

What is disintermediation?

Removing intermediaries from a distribution channel.

What is reintermediation?

Adding new intermediaries after others have been removed.

What are channel members?

Organizations in a distribution channel such as wholesalers, retailers, and agents.

What is intensive distribution?

Product available through as many outlets as possible.

What is selective distribution?

Product sold through a limited number of outlets.

What is exclusive distribution?

Product sold through one retailer or distributor in a geographic area.

What is a Vertical Marketing System (VMS)?

A system where channel members cooperate closely.

What is an administered VMS?

A powerful channel member controls others through market power.

What is a contractual VMS?

Channel cooperation based on contracts or franchising.

What is a corporate VMS?

One company owns multiple levels of the channel.

How are channel members managed?

Selection, Motivation, Training, Evaluation, Conflict Management.

What are important distributor selection criteria?

Market knowledge, market coverage, sales force quality, financial standing, managerial competence, enthusiasm.

What is physical distribution?

Movement of goods from producer to customer.

What is digital distribution?

E-commerce that improves speed, timing, location, and convenience.

What is multichannel distribution?

Using multiple distribution channels simultaneously.

What four questions does marketing planning answer?

Where are we now? Where do we want to be? How do we get there? Are we on course?

What is a marketing audit?

An analysis of a company's marketing environment, objectives, and activities.

What is included in an internal audit?

Market share, profit margins, costs, and core competencies.

What is included in an external audit?

Macro factors (PESTEL) and micro factors (customers, competitors, suppliers, distributors).

What is a conversion strategy?

Turning weaknesses into strengths and threats into opportunities.

What are strategic thrust objectives?

Broad strategic direction.

What are strategic objectives?

Specific measurable goals.

What are the four strategic options/objectives?

• Build = grow

• Hold = maintain

• Harvest = maximize cash

• Divest = sell/discontinue

What is a core strategy?

The overall plan for achieving objectives. Meet customer needs, understand competitors, create competitive advantage, and be realistic.

What are benefits of marketing planning?

Consistency, monitoring change, adaptability, achievement, resource allocation, competitive advantage.

What are the four stages of the Product Life Cycle?

Introduction, Growth, Maturity, Decline.

BCG Matrix

1.        Star =  High growth, High share (Build)

2.        Problem Child = High growth, low share (Build selectively)

3.        Cash Cow = Low growth, high share (hold)

4.        Dog = low growth, low share (Harvey or digest)

What are the two dimensions of the GE Matrix?

Market Attractiveness and Competitive Strength.

What are the four Ansoff growth strategies?

Market Penetration, Market Development, Product Development, Diversification.

What are Porter's Five Forces?

Threat of New Entrants, Supplier Power, Buyer Power, Threat of Substitutes, Industry Rivalry.

What is cost leadership?

Competing through the lowest costs.

What is differentiation?

Competing through unique value or features.

What is cost focus?

Low-cost strategy aimed at a niche market.

What is the main goal of questionnaire development?

Keep questionnaires short, clear, and easy to answer.

What is category proliferation?

Too many response categories.

What is scale point proliferation?

Too many scale points on a rating scale.

What is the recommended number of scale points?

About 4–5 scale points.

What is the best order for response categories?

Logical order from low to high.

Why are midpoint responses problematic?

They may reflect uncertainty rather than neutrality.

What should response options allow for?

Uncertainty, such as "Don't know."

How many items should respondents rank at once?

No more than six.

What is the Apple Pie Problem?

Questions where almost everyone gives a positive answer.

Where should sensitive questions be placed?

At the end of the questionnaire.

What is probability sampling?

Random selection; results can be generalized to the population.

What is non-probability sampling?

Convenience sampling with limited generalizability.

What is a major issue with online sampling?

Often lacks a proper sampling frame.

Why can harvested email addresses be problematic?

They may be unethical to use.

Does a larger sample automatically improve accuracy?

No, survey quality depends on reducing errors, not only sample size.