Business Strategies Overview

Benchmarking

• Benchmarking is comparing a company's performance to best-in-class companies to identify areas for improvement.
• Example: A retail chain comparing its supply chain efficiency to Amazon.

Simon Sinek's "Start With Why"

• Simon Sinek's TED Talk emphasizes the importance of understanding the "Why" behind actions to inspire and lead effectively.

Market Segmentation

• Segmentation Variables: Criteria used to divide a market into distinct groups.
  • Demographic: Age, gender, income, education.
  • Psychographic: Lifestyle, values, personality.
  • Behavioral: Purchase behavior, brand loyalty.
• Example: A luxury car brand targeting high-income individuals aged 40-60 who value prestige and performance.

Market Coverage Strategies

• Market Coverage: The extent to which a company targets its products or services across various market segments.
  • Intensive Distribution: Products available in as many outlets as possible.
  • Selective Distribution: Products available in select outlets.
  • Exclusive Distribution: Products available in a single or limited number of outlets.

Group Influences on Consumer Behavior

• Group Influences: The impact that groups (family, friends, social networks) have on purchasing decisions.
• Example: A teenager buying a specific brand of sneakers because it's popular with peers.

Product Life Cycle (PLC) and Marketing Strategies

• PLC Stages:
  • Introduction: Product launch; focus on awareness.
  • Growth: Increasing sales; focus on differentiation.
  • Maturity: Sales peak; focus on maintaining market share.
  • Decline: Sales decline; consider product discontinuation or innovation.
• Marketing Strategies by PLC Stage:
  • Introduction: Heavy promotion, introductory pricing.
  • Growth: Enhance product features, expand distribution.
  • Maturity: Product modifications, promotional offers.
  • Decline: Cost-cutting, explore new markets.

Distribution Channels

• Distribution Channels: Pathways for products to flow from producers to consumers.
  • Direct Channel: Producer sells directly to consumers.
  • Indirect Channel: Involves intermediaries like wholesalers and retailers.
• Example: A manufacturer using retailers to sell products to end-users.

Pricing Strategies

• Pricing Approaches:
  • Cost-Based Pricing: Setting prices based on production costs plus a markup.
  • Competition-Based Pricing: Setting prices based on competitors' strategies.
  • Value-Based Pricing: Setting prices based on perceived value to the customer.
• Price Sensitivity: Degree to which price affects purchasing behavior.
  • High Sensitivity: Commodities with many substitutes.
  • Low Sensitivity: Unique or essential products.

Marketing Channels and Distribution

• Marketing Channels: Intermediaries moving products from producers to consumers.
• Functions: Information dissemination, promotion, contact, matching, negotiation.
• Channel Levels:
  • Zero-Level (Direct Marketing): No intermediary; direct to consumer.
  • One-Level: One intermediary (e.g., retailer).
  • Two-Level: Two intermediaries (e.g., wholesaler and retailer).

Explore key business concepts including benchmarking, market segmentation, and coverage strategies. This quiz will help you understand how companies can improve performance, effectively target markets, and inspire leadership. Ideal for students of business and marketing.