D077 - Cohort 1 Questions and Answers

Product Concept ✔✔* Understanding product dynamics to: -- Showcase the best qualities -- Maximum product features Sales Concept ✔✔* Seller's need to convert their product into cash Production Concept ✔✔* Consumers wi ...

Product Concept ✔✔* Understanding product dynamics to: -- Showcase the best qualities -- Maximum product features Sales Concept ✔✔* Seller's need to convert their product into cash Production Concept ✔✔* Consumers will favor products that are available and highly affordable * Organization should focus on improving production and distribution efficiency Marketing Concept ✔✔* Firms should analyze customer needs * Make decisions to satisfy those needs, better than the competition. Marketing Mix ✔✔* Product * Price * Promotion * PlaceProduct ✔✔* Goods, services, and ideas * Brand name packaging * Warranties * Accessories Strategic Product Management ✔✔* Product mix * Product lines * Product Life Cycle * Modifications Introductory Stage ✔✔* No profits or sales Growth Stage ✔✔* Sales and profits start climbing quickly Maturity Stage ✔✔* Sales increase at a decreasing rate Declining Stage ✔✔* Sales and profits fall rapidlyStrategic Planning ✔✔* Primary objectives * Long-term activities * What is going to be done Tactical Planning ✔✔* Implementing strategy plan * Short term activities * How it is going to be done BCG Matrix ✔✔* Concerned with market share and growth rate * Identifies value of certain brand Dog ✔✔* Low market share and growth rate Star ✔✔* High market share and growth rate Cash Cow ✔✔* High market share * Low growth rate* Most likely introductory stage * Used for future investments Question Mark ✔✔* Low market share * High growth rate * Undecided future -- May end up as dog or star Product Ethics ✔✔* Sustainability * Treatment of people and animals in production * Delivery of promised value * Harmful to customers or society Pricing Ethics ✔✔* Price fixing (Collusion) * Price discrimination * Predatory pricing (Undercutting) * Bait and switch * Price gougingPrice Fixing ✔✔* Collusion * Two or more competing companies agree on price to charge Price Discrimination ✔✔* Charging different prices for same product * Maximizes profit Predatory Pricing ✔✔* Pricing product extremely low to drive out competition Price Gouging ✔✔* Company has monopoly on market * Prices overly high to drive profit Promotion Ethics ✔✔* Avoid deception * Build trust * Avoid spamming, degrading competitors, false advertising, distorting endorsements Place Ethics ✔✔* Involves partners in distribution * Performance as promised* Expected deliveries * Best practices for environmental sustainability in transportation Marketing Planning ✔✔* Steps involved in creating a marketing plan Marketing Planning Steps ✔✔* Mission Statement * Situational Analysis * Objectives * Strategy Development * Monitoring & Control Mission Statement ✔✔* Statement of the organization's purpose -- What it wants to accomplish in the larger environment Situational Analysis ✔✔* Review of internal and external factors affecting a business * Incorporates research to better understand: -- Marketing environment -- Prospective customers-- How organizational capabilities match market needs Objectives ✔✔* Specifies measurable outcomes to be achieved within a specific timeframe -- SMART goals Strategy Development ✔✔* Defines how marketing mix can be used to achieve marketing objectives * Target market is center of decisions * Strategies align with objectives Monitoring and Control ✔✔* Tracking progress towards objectives * Measuring performance for any needed adjustments * Helps companies react and adjust to external factors in business environment SWOT Analysis ✔✔* Identifying internal and external forces that can affect a marketing plan Porters Five Forces ✔✔* Industry and competitor tool * Examines nature of competition in a market* Each force analyzed to determine threat level * Identifies opportunities * Evaluates decisions within context of environment Strategies ✔✔* Describe how you will achieve objectives * "Sets the stage" Tactics ✔✔* Specific actions used to implement strategies * "The play" Marketing Research ✔✔* Gathering, recording, and analyzing data about customers, competitors, and market * Informs decision making and strategy development * Data should be reliable and valid * Data can be quantitative or qualitative Primary Data ✔✔* First-hand data * Relevant and proprietary* Time consuming and expensive Secondary Data ✔✔* Information that already exists somewhere * Data collected for another purpose * May be obsolete Growth Strategy Purposes ✔✔* Increase market share * Increase volume * Economies of Scale * Learning Curve Advantages * Increase profits Strategic Opportunity Mix ✔✔* Market Penetration * Product Development * Market Development * Diversification Market Penetration Strategy ✔✔* Existing products in existing markets* May use BOGO promotions