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Questions and Answers
What is the ROI percentage for capital goods when investment intensity is at 105%?
What is the ROI percentage for capital goods when investment intensity is at 105%?
Relative product quality affects ROI equally for both consumer goods and capital goods.
Relative product quality affects ROI equally for both consumer goods and capital goods.
True
What key variable contributes to the ROI in business-to-consumer marketing?
What key variable contributes to the ROI in business-to-consumer marketing?
Relative product quality
At 60% market share, the ROI for consumer goods is ______.
At 60% market share, the ROI for consumer goods is ______.
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Match the following ROI influencing variables with their respective ROI for consumer goods:
Match the following ROI influencing variables with their respective ROI for consumer goods:
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Which of these percentages corresponds to the ROI for consumer goods at 25% market share?
Which of these percentages corresponds to the ROI for consumer goods at 25% market share?
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The ROI for capital goods remains constant regardless of market share.
The ROI for capital goods remains constant regardless of market share.
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At which investment intensity percentage does ROI for consumer goods reach the maximum?
At which investment intensity percentage does ROI for consumer goods reach the maximum?
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Which of the following is NOT a key aspect of corporate strategy?
Which of the following is NOT a key aspect of corporate strategy?
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Corporate strategy defines only the financial objectives of a company.
Corporate strategy defines only the financial objectives of a company.
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What is meant by SBUs in the context of corporate strategy?
What is meant by SBUs in the context of corporate strategy?
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Corporate strategy involves long-term planning and defines the ____ of action for strategic measures.
Corporate strategy involves long-term planning and defines the ____ of action for strategic measures.
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Match the following objectives with their descriptions:
Match the following objectives with their descriptions:
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Which of the following statements is true regarding company objectives?
Which of the following statements is true regarding company objectives?
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The strategic resources and capabilities of a company are developed solely for immediate needs.
The strategic resources and capabilities of a company are developed solely for immediate needs.
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What role does resource distribution play within corporate strategy?
What role does resource distribution play within corporate strategy?
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What does SBU stand for in the context of business strategy?
What does SBU stand for in the context of business strategy?
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Functional strategy is solely focused on marketing activities within a company.
Functional strategy is solely focused on marketing activities within a company.
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What is the primary focus of a marketing strategy within a corporate strategy?
What is the primary focus of a marketing strategy within a corporate strategy?
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In the context of marketing strategy, ___ strategy deals with the alignment of production functions.
In the context of marketing strategy, ___ strategy deals with the alignment of production functions.
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Which of the following is NOT a type of strategy mentioned?
Which of the following is NOT a type of strategy mentioned?
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Marketing strategy is considered a dominant functional strategy within a corporate framework.
Marketing strategy is considered a dominant functional strategy within a corporate framework.
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What role does the marketing strategy play within the overall business unit strategy?
What role does the marketing strategy play within the overall business unit strategy?
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Which business mission was associated with Steve Jobs in 1980?
Which business mission was associated with Steve Jobs in 1980?
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Marketing objectives are not related to actual customer behavior.
Marketing objectives are not related to actual customer behavior.
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What is one example of a marketing objective related to potential?
What is one example of a marketing objective related to potential?
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Tesla's values are often centered around innovation and _____ in electric vehicle production.
Tesla's values are often centered around innovation and _____ in electric vehicle production.
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Match the business mission slogans to their companies:
Match the business mission slogans to their companies:
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Which of the following describes financial marketing objectives?
Which of the following describes financial marketing objectives?
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During which phase of the market life cycle is customer loyalty generally at its highest?
During which phase of the market life cycle is customer loyalty generally at its highest?
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Market shares during the introduction phase are easy to estimate due to high volatility in a growing market.
Market shares during the introduction phase are easy to estimate due to high volatility in a growing market.
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A company's marketing objectives should include factors related to market success.
A company's marketing objectives should include factors related to market success.
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What is the primary indicator of customer loyalty in the growth phase?
What is the primary indicator of customer loyalty in the growth phase?
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Name one essential factor that impacts the success of a company according to marketing objectives.
Name one essential factor that impacts the success of a company according to marketing objectives.
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In the __________ phase, companies experience stagnation or negative growth rates.
In the __________ phase, companies experience stagnation or negative growth rates.
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What is a common characteristic of the maturity phase in terms of market potential?
What is a common characteristic of the maturity phase in terms of market potential?
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Match the market life cycle phases with their characteristics:
Match the market life cycle phases with their characteristics:
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In the growth phase, market potential is frequently limited by price.
In the growth phase, market potential is frequently limited by price.
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What happens to the number of competitors in the saturation phase?
What happens to the number of competitors in the saturation phase?
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What is a significant factor that influences market entry according to the content?
What is a significant factor that influences market entry according to the content?
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Established companies have difficulty accessing markets due to high entry barriers.
Established companies have difficulty accessing markets due to high entry barriers.
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What are the main technological advantages that help companies enter new markets?
What are the main technological advantages that help companies enter new markets?
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Entry barriers are mainly dependent on financial capacity, technical ______, and willingness to take risks.
Entry barriers are mainly dependent on financial capacity, technical ______, and willingness to take risks.
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Which of the following options is NOT a mentioned disadvantage of the life cycle model?
Which of the following options is NOT a mentioned disadvantage of the life cycle model?
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Match the following market entry factors with their descriptions:
Match the following market entry factors with their descriptions:
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The life cycle model accurately reflects all empirical sales curves observed.
The life cycle model accurately reflects all empirical sales curves observed.
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What strategic actions can managers take to actively manage sales and life cycles?
What strategic actions can managers take to actively manage sales and life cycles?
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Study Notes
Business-to-Consumer Marketing
- This presentation is about business-to-consumer marketing.
- The presenter is Prof. Dr. Valerie Wulfhorst.
- The institution is Fachhochschule Südwestfalen.
- The goal is to create momentum.
Agenda
- Marketing definition and goals.
- Marketing strategy.
- Analysis of the initial strategic situation.
- Formulation, evaluation and selection of marketing strategies.
- Marketing mix.
- Product.
- Price.
- Sales.
- Communication.
- Customer relationship management.
Key Aspects of Marketing Strategy
- An Initial Overview of the Marketing Strategy Concept.
- The 'Classics' of Strategic Success Factor Research.
- The Marketing Strategy Development Process.
Learning Objectives
- Different types of company strategies and marketing objectives.
- Various strategy levels in companies and how they relate to each other.
- PIMS (Profit Impact of Market Strategies) research and critical evaluation of the PIMS Project.
- Experience curve model and its impact on strategic marketing, along with critical evaluations.
- Life cycle model, critical evaluation, and strategic marketing implications.
- Individual steps in developing marketing strategies.
Overview of Marketing Strategy Concept
- Different types of company strategies and marketing objectives.
- Various strategy levels in companies and their interrelationships.
What is Strategy?
- Limits choices, simplifies decision-making.
- "Many roads lead to Rome" (multiple options).
- Focused on achieving goals with plans, policies, and principles.
- Involves consistency, integration, cohesiveness.
- Long-term perspective.
Corporate Strategy
- Defines company orientation, long-term.
- Aligning the company's overall strategy with objectives.
- Establishing financial and non-financial objectives.
- Defining relevant markets and SBUs(Strategic Business Units).
- Distributing resources across SBUs.
- Defining strategic measures scope for SBUs and functions.
- Developing and exploring strategically relevant resources and capabilities.
System of Company Objectives
- Hierarchical structure of objectives.
- Business mission → company objectives → functional objectives → instrumental objectives.
- Links long-term objectives to financial and non-financial goals.
- Breakdown of objectives to SBU and functional levels (including marketing).
Examples of Business Missions
- Steve Jobs (Apple): advance humankind by providing tools for the mind.
- Harley-Davidson: the journey, not the destination.
- IKEA: creating a better everyday life for people.
- Nike: just do it.
Example: Business Mission/Values of Tesla
- Goal: To accelerate the advent of sustainable transportation, starting with compelling electric cars.
- The company faced early challenges regarding economies of scale and affordability.
- Initial focus on a sports car model for market competitiveness.
Example: Business units at Mercedes-Benz
- Mercedes-Benz AG, Daimler Truck AG, Daimler Mobility AG.
- Examples of different business units.
Example: Mercedes-Benz "Cars" Strategy (SBU)
- Goal: To develop the world's most desirable cars.
- Focus on profitable growth, expanding customer base, leading in electric drive and digital experience.
- Emphasis on sustainability, integrity, and diversity.
Marketing Objectives of a Company
- Objectives related to potential market success prerequisites.
- Objectives focusing on market success based on actual customer behavior.
- Financial objectives aligning with conventional economic success factors.
Systematization of Marketing Objectives
- Categorization of objectives based on potential, market success, financial performance.
- Examples: familiarity with the company, company image, service quality, customer attitudes, customer satisfaction, sales, market share, customer loyalty, buying frequency, customer equity, pricing levels.
Goals of Marketing - the Value-Based View
- Marketing decision → non-financial performance → financial performance → circular approach relating marketing to corporate performance.
Marketing Performance Chain
- Marketing actions (Product, Price, Place, Promotion) → Marketing Assets (Customer Satisfaction, Customer Retention, Quality, Brand Value, Customer Value, Defection Rate, Image, etc.) → Value-Based Performance (EVA, CVA, ROCE, CFROI, etc.).
Differentiation of Strategies According to Level in the Organization
- Hierarchical structure of strategies, from corporate to business unit to functional strategies (including procurement, production, marketing).
- Clear demarcation among strategies at different hierarchical levels.
Business Unit Strategy
- Competitive measures specific to a defined market.
- Strategic alignment of functions within the company.
- Marketing strategy positioning within wider strategic framework.
Different Approaches to Classifying Marketing Strategy
- Different perspectives on marketing strategy in relation to other functional strategies (personnel, production, R&D, procurement).
- Marketing strategy as one of several functional strategies versus a dominant strategy.
The "Classics" of Strategic Success Factor Research
- PIMS Project.
- Experience Curve Model.
- Life Cycle Model.
PIMS – Project Structure
- Data collection (Member companies, database, research).
- Analysis (analytical models, simulation, outputs).
- Strategic choices leading to ROI.
What is PIMS?
- Comprehensive long-term study of strategic business unit (SBU) performance across various industries.
- Aims to understand factors influencing SBU success, starting with General Electric in the 1950s.
- Data collection to characterize strategic competitive position.
- Data management by the Strategic Planning Institute (SPI).
The PIMS Database
- Data from five areas: competitive position, business environment, production characteristics, SBU strategy, budget allocation.
- ROI influenced by investment intensity, relative market share, and relative product quality.
PIMS - The ROI is Affected by the Following Three Key Influencing Variables
- Relative product quality (positive impact on ROI).
- Relative market share (positive impact on ROI).
- Investment intensity (negative impact on ROI).
Summary of Criticism of the PIMS Project
- Subjectivity in data, inadequate representation of certain SBUs.
- Limitations in analysis methods, neglecting interdependencies and time lags.
- Overemphasis on ROI, neglecting other success factors.
- Narrow scope of the model, not suitable for all types of businesses.
- Methodology limitations.
Experience Curve Model: Explanation
- Unit cost reductions over time related to the increase in production volume (repeated task).
- Cost reduction due to fixed cost degression, learning effects, and economies of scale.
- Potential cost reduction between 20%-30% by doubling production.
Empirically Determined Cost Reductions
- Table showing cost reduction percentages for various product types when production volume doubles.
Experience Curve
- Graphic representation of the experience curve showing cost reduction related to accumulated volume.
Experience Curve Model: Critical Evaluation
- Assessment needs consistent identity over a period, difficult for many products.
- Limited aspects for marketing strategizing.
- Relevance depends on market conditions and customer factors.
- Focus on standardized/high-volume products.
- Gaining cost advantage through high market share.
The "Classics" of Strategic Success Factor Research
- Summarizing points of discussion.
Sales and Profit Curves According to the Life Cycle Model
- Graphic representation of sales and profit based on product life cycle (Introduction, Growth, Maturity, Saturation).
- Characteristics of each stage in terms of date of introduction, sales maximum, profit threshold, profit maximum, and re-entry into loss zone.
Life Cycle Model: Explanation
- Introduction (extensive marketing).
- Growth (demand increase).
- Maturity (full production, focusing on cost efficiencies).
- Saturation (re-launching, new products).
Characteristics of Market Life Cycle Phases
- Summary table listing characteristics (market growth, potential, market share, stability of market share, number of competitors) during different phases.
Characteristics of Market Life Cycle Phases
- Detailed explanation of different market life cycle phases encompassing customer loyalty, entry barriers, and technology as key factors.
Life Cycle Model: Critical Evaluation
- Simplifies reality by considering time as the primary variable.
- Limitations of empirical observations aligning with the S-shaped curve.
- Possibility for active management by companies through actions.
Product Life Cycle Types
- Diagrams showcasing different product life cycle patterns (ascending/descending curves).
Typical Strategic Behavior in the Various Life Cycle Phases
- How companies adapt marketing/pricing strategy, target markets, and product range across the phases of a product's life cycle.
Typical Strategic Behavior in the Various Life Cycle Phases
- Emphasizes communication, sales/distribution decisions, and actions undertaken across the different phases of a product's life cycle (introduction, growth, maturity, saturation).
The Marketing Strategy Development Process
- Steps involved in developing marketing strategies.
- Process of defining, evaluating, selecting, and implementing strategies.
Process of Strategy Development in Marketing
- Process of strategy development.
- Detailed steps/processes (analysis, formulation of alternatives, evaluating, selecting, implementation, and monitoring).
Kahoot!-Time
- Instructions for using the interactive learning tool Kahoot.
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Description
Test your knowledge on the relationship between ROI and corporate strategy with this quiz. Explore key concepts affecting ROI in both consumer and capital goods, as well as the strategic objectives of companies. Perfect for students and professionals in business management.
