Marketing Strategies and Analysis Tools
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Questions and Answers

Which strategy is characterized by introducing new products in new markets?

  • Market Penetration
  • Product Development
  • Diversification (correct)
  • Market Development

    • Which of the following is NOT a dimension of competitive differentiation according to the content?

  • Personnel
  • Promotion (correct)
  • Image
  • Product

    • What must businesses invest in to sustain their competitive advantage over time?

  • Innovation in distribution channels
  • Employee benefits
  • Marketing research
  • Maintaining quality standards (correct)

    • What is the primary focus of the marketing mix in sustainable marketing?

    <p>Product, price, place, and promotion (C)</p> Signup and view all the answers

    Which two-step approach involves a medium-risk strategy after market penetration?

    <p>Market Penetration → Market Development (D)</p> Signup and view all the answers

    What is the main purpose of the McKinsey 7S Framework?

    <p>To understand the internal alignment of an organization (B)</p> Signup and view all the answers

    In the context of internal analysis tools, what do businesses achieve when the seven elements of the McKinsey 7S Framework are aligned?

    <p>Enhanced competitive advantage (C)</p> Signup and view all the answers

    Who originally introduced the concept of 'Core Competence'?

    <p>C.K. Prahalad and Gary Hamel (A)</p> Signup and view all the answers

    What is a common weakness when using the McKinsey 7S Framework according to the information provided?

    <p>It may require subjective judgment for some elements (C)</p> Signup and view all the answers

    What is one of the key characteristics of a comprehensive marketing audit?

    <p>It must be timely and structured (B)</p> Signup and view all the answers

    Which of the following statements best describes the Directional Policy Matrix (DPM)?

    <p>It assists in portfolio analysis based on growth potential (A)</p> Signup and view all the answers

    What aspect of businesses does the BCG Matrix evaluate?

    <p>Market share and growth (B)</p> Signup and view all the answers

    Which internal analysis tool focuses on understanding value addition throughout an organization’s processes?

    <p>Porter’s value chain analysis (A)</p> Signup and view all the answers

    How many tools or frameworks should marketers ideally select for internal analysis according to the information provided?

    <p>3-4 (C)</p> Signup and view all the answers

    Which analysis tool juxtaposes internal factors with external factors to inform strategic and marketing planning?

    <p>SWOT analysis (C)</p> Signup and view all the answers

    Which framework is primarily used to evaluate a company's strengths and weaknesses in the context of its competitive position?

    <p>Core Competence Framework (C)</p> Signup and view all the answers

    What does the BCG Matrix primarily assess in relation to products or business units?

    <p>Market share and market growth (B)</p> Signup and view all the answers

    Which tool helps identify opportunities for growth by analyzing the competitive environment, particularly through the supply chain?

    <p>Porter's Value Chain Analysis (B)</p> Signup and view all the answers

    How frequently should the SWOT analysis be undertaken to remain effective?

    <p>Regularly (C)</p> Signup and view all the answers

    In the context of the Directional Policy Matrix, which aspect is least likely to be analyzed?

    <p>Customer demographics (D)</p> Signup and view all the answers

    What does the McKinsey 7S Framework primarily focus on to achieve organizational effectiveness?

    <p>Consistency among seven key internal elements (A)</p> Signup and view all the answers

    Which of the following best describes the purpose of sustainable marketing objectives?

    <p>Incorporating environmental considerations into marketing strategies (A)</p> Signup and view all the answers

    The SWOT analysis does not provide which of the following?

    <p>Specific marketing objectives (C)</p> Signup and view all the answers

    Which internal analysis tool would you use to evaluate how well an organization is structured to achieve its strategic goals?

    <p>McKinsey 7S Framework (C)</p> Signup and view all the answers

    Which of the following best describes the core purpose of Schumpeter's concept of Creative Destruction?

    <p>To show how new paradigms can disrupt existing business models. (A)</p> Signup and view all the answers

    In Porter's Generic Strategies, which strategy involves producing unique products for specific customers?

    <p>Differentiation (C)</p> Signup and view all the answers

    Which aspect of the Ansoff matrix focuses on delivering existing products in new markets?

    <p>Market Development (D)</p> Signup and view all the answers

    What does the Directional Policy Matrix (DPM) assess in a strategic analysis?

    <p>The relationship between market share and market growth. (B)</p> Signup and view all the answers

    What does Porter's value chain analysis primarily focus on?

    <p>Understanding activities that create customer value. (C)</p> Signup and view all the answers

    Which of the following is a potential risk identified by Ansoff in the strategic growth process?

    <p>Mismatch between products and market needs. (B)</p> Signup and view all the answers

    In the context of sustainability, what does a high investment in green projects typically indicate about a company's ethical stance?

    <p>They are ignoring social impacts. (D)</p> Signup and view all the answers

    What is the implication of sustainability representing a 'step change' in business operations according to Schumpeterian theory?

    <p>Incremental improvements do not suffice for market relevance. (D)</p> Signup and view all the answers

    How does a company practicing cost leadership differentiate itself from its competitors in the market?

    <p>By maintaining the lowest prices among competitors. (C)</p> Signup and view all the answers

    Which of the following best describes the role of sustainable entrepreneurs in the context of market dynamics?

    <p>They create innovations that address systemic societal issues. (C)</p> Signup and view all the answers

    Which of these statements is NOT true for a company's core competencies?

    <p>They don't need to meet the criteria of providing potential access to a wide variety of markets, creating value for customers and prospects, and differentiating the organisation from competitors. (A)</p> Signup and view all the answers

    What is the primary purpose of the Directional Policy Matrix (DPM)?

    <p>To assess a product's position in a company's portfolio and map key competitors. (B)</p> Signup and view all the answers

    Which of the following is NOT a core characteristic of the 5 Forces model, developed by Michael Porter?

    <p>It emphasizes the importance of a company's core competencies in achieving competitive advantage. (D)</p> Signup and view all the answers

    What is the most likely outcome if a company fails to develop and maintain strong core competencies?

    <p>Difficulty in retaining and attracting skilled employees. (B)</p> Signup and view all the answers

    Which of the following is a key assumption underlying Porter's 5 Forces model?

    <p>Competitive advantage is derived from a company's ability to anticipate and adapt to changes in the micro-environment. (C)</p> Signup and view all the answers

    The core competence framework emphasizes the importance of _____ in achieving sustainable competitive advantage.

    <p>Organizational culture (D)</p> Signup and view all the answers

    What is the primary purpose of a company's value chain analysis, according to the text?

    <p>To understand the sequence of activities that create value for customers. (B)</p> Signup and view all the answers

    Flashcards

    Core Competence

    An organization’s collective knowledge, skills, and attitude that drive value creation.

    Core Products

    The tangible results derived from core competencies that deliver value to customers.

    Criteria for Core Competencies

    Core competencies must provide access to markets, create value, differentiate, reflect values, and be resilient.

    BCG Matrix

    A model used to analyze a company's product portfolio based on market share and growth.

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    Directional Policy Matrix (DPM)

    A tool for assessing product positions and competitor mapping in a company's portfolio.

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    Porter’s Value Chain Analysis

    A model describing a sequence of primary and support activities that create value in an organization.

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    Market Attractiveness

    A factor in the Directional Policy Matrix assessing the potential of a market for growth.

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    5 Forces Model

    A framework introduced by Michael Porter to evaluate competitive environments and industry structure.

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    Marketing Environments

    The internal and external factors that influence marketing strategies.

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    External Factors

    Factors outside the organization's control in the macro-environment.

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    Internal Factors

    Factors within the organization that can be controlled and managed.

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    Marketing Audit

    A comprehensive assessment of the marketing environment and activities.

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    CAST Mnemonic

    A framework that provides structure for marketing audits but requires judgment.

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    McKinsey 7S Framework

    A holistic analysis tool considering seven organizational elements.

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    Environmental Scanning

    The process of gathering, analyzing, and interpreting external data.

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    Comprehensive Audit

    An audit that covers all relevant factors without bias.

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    Competitive Advantage

    Superior position gained by aligning internal factors effectively.

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    Social/Ethical Investment

    Investing profits in ethical practices and community welfare.

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    Green Projects

    Initiatives aimed at environmental sustainability.

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    Triple Bottom Line

    Business framework focusing on social, environmental, and economic value.

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    Creative Destruction

    Process where new ideas disrupt existing businesses.

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    Porter’s Cost Leadership

    Strategy to become the lowest-cost producer in the industry.

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    Porter’s Focus Strategy

    Targets a specific market segment with tailored offerings.

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    Porter’s Differentiation

    Offering unique products to attract a diverse market.

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    Ansoff Matrix

    A tool for determining growth strategies based on products and markets.

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    Market Redefinition

    Changing market boundaries to create new customer segments.

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    Sustainable Entrepreneurs

    Business leaders who focus on innovative and responsible business practices.

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    Market Penetration

    A low-risk strategy to increase sales of existing products in existing markets through aggressive promotion.

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    Market Development

    A medium-risk strategy that involves introducing existing products to new markets.

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    Product Development

    A medium-risk strategy that involves creating new products for existing markets.

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    Diversification

    A high-risk strategy involving new products in new markets, aiming to spread business risk.

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    Competitive Differentiation

    Using unique features in product, service, or branding to stand out in the market.

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    Video-sharing sites

    Platforms where users can upload and share videos, expected to grow in popularity.

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    3D Printing

    A technology that creates three-dimensional objects from digital files, becoming more accessible.

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    Ecological environment

    The broader natural surroundings that influence market behavior.

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    Green Marketing

    Marketing efforts that promote environmentally friendly products and practices.

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    SWOT Analysis

    A tool that assesses Strengths, Weaknesses, Opportunities, and Threats for strategic planning.

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    Internal Analysis

    Evaluation of an organization's strengths and weaknesses over time.

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    Macro Analysis

    Assessment of external factors affecting an organization, including Opportunities and Threats.

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    Strategic Planning

    A process for defining an organization's direction and making decisions on allocating resources.

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    Market Trends

    Patterns in consumer behavior and market dynamics over time.

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    Study Notes

    Circular Economy

    • Consumers increasingly buy from companies demonstrating more than just business as usual.
    • Consumption is heavily influenced by social values and digital information shared externally to the company.
    • Sustainability is now a key concern for stakeholders, despite its absence in many marketing texts.
    • Marketing is defined as the management process of anticipating, identifying and satisfying customer needs.
    • Other definitions highlight creating, communicating, delivering and exchanging offerings with value for customers, clients, and partners.
    • Marketing involves creating and exchanging products and services.

    The Main Elements of Marketing

    • Marketing is seen as a management process that requires "buy-in" from top management
    • Employees at all levels have an impact on customer experience (positive or negative)
    • The Traditional view of marketing is outdated, as organizations don't give customers value, but instead, co-create it together.
    • Marketers are focusing on circumstances where customers can co-create or seek value from the company.
    • This leads to customer-centric approach, increasing relationship and valuable information about customer needs.

    Sustainability in Business

    • Consumer behaviour and consumerism have been debated for a long time.
    • Many commentators have reflected on different values associated with consumption and consumerism.
    • Concepts like Voluntary simplicity, positional goods and conspicuous consumption have been debated.
    • Companies are now expected to address ethical and societal impacts, especially for sustainability
    • Organisations that have addressed these elements successfully will be better positioned in the market.

    Stakeholder Relationships and Theory

    • There is a shift from prioritizing shareholder interests to addressing the interests of all stakeholders.
    • Businesses need to meet expectations around sustainability and legal obligations
    • Improving management relationships is vital for better understanding of stakeholders and their needs.
    • Stakeholders are defined as groups or individuals who are affected by or influence an organisations' goals and objectives.
    • Some reasons for stakeholder engagement include understanding the system complexities, identifying potential conflicts, and resolving them effectively.

    Historical Context of Consumption

    • Sustainable consumption is a topic with a long history, reflecting how consumerism and behaviour change and develop over time.
    • Debates about consumer behaviour and consumerism are deep, focusing on theories of consumption (Aristotle, Veblen, Bourdieu) and social distinction (Hirsch and Douglas).
    • The historical view of voluntary exchanges where both parties benefit.

    Ethical Concerns (Greenwashing and Charity Washing)

    • Greenwashing is the false representation of products, services or policies as environmentally friendly.
    • Charity washing is the fraudulent use of charitable activities as a marketing strategy with little or no actual benefit to the charity.
    • Companies do this to improve their public image.

    Sustainability in the Brundtland Report

    • The Brundtland report (1987) introduced the modern concept of sustainable development.
    • Defining sustainability as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
    • Businesses activities must be environmentally responsible.
    • Companies must be profitable also.

    Sustainability and Business

    • Many companies are promoting their green credentials on social media.
    • However, simply stating their greenness is insufficient in today's marketplace.
    • Companies that engage in greenwashing are at risk of reputation damage.
    • A company's actions should always align with its stated beliefs and values. (e.g. charity washing)
    • Relationship marketing (RM) is a customer-centric approach to business relationships, encouraging repeat business.
    • Many companies now focus on relationship marketing rather than individual sales.
    • Sustainable entrepreneurship is about aligning business with values and norms.
    • Sustainable entrepreneurs need to respond to consumer priorities and expectations as they change, adapting their values and norms to meet them.
    • Many factors can lead companies to concentrate on specific stakeholders, which might be geographically localised, culturally localised, etc., or in terms of their engagement in the production chain or product itself.

    Customer Value, Relationships, and Management

    • Companies have to understand customers to be able to build good lasting relationships in the business, leading to higher profitability
    • The Customer Relationship Management (CRM) is a system that helps companies to manage their relationships with customers and improve those relationships as well as identifying the needs and wants
    • Loyalty is a key aspect of CRM because it creates sustained revenue and relationships
    • A good company is interested in a specific group of customers and not all of them.

    The Relationship Between Firm and Society

    • Scholars have criticized businesses for neglecting ethical, social responsibility, and sustainability issues
    • The traditional view of business is being challenged -- from being solely focused on profits to taking broader social and environmental responsibility.

    Corporate Social Responsibility (CSR)

    • Business responsibility is on one side and ethics on another, creating a gap called corporate social responsibility.
    • CSR is a broad concept, encompassing the business's economic, politics and social integration into ethics
    • Companies may adopt CSR policies for improved profitability, fostering positive stakeholder relationships.

    The Stakeholder Theory and Analysis

    • Stakeholder theory provides a framework for understanding how companies can maintain beneficial relationships with stakeholders, or can develop relationships in a manner where harm to stakeholders occurs.
    • Primary stakeholders are those necessary for the company to function.
    • Secondary stakeholders are those that influence or affect, but are not essential.
    • Many companies fail despite having large numbers of customers, often because of the disconnect of these stakeholders and customer needs and wants.

    Sustainability in the Triple Bottom Line

    • The Triple Bottom Line (TBL) refers to a business model that integrates economic, social, and environmental considerations.
    • This includes concepts such as people, planet, and profit.
    • It's now considered important for businesses to be aware of the TBL and incorporate these facets of business into the marketing and business operations.
    • All three are seen to be balanced in this framework.

    Sustainable Marketing

    • The phrase ‘Sustainable Marketing’ emerged from the inadequacy of green (or ecological) marketing.
    • It entails creating, delivering value to customers that preserves natural and human capital.
    • The focus of decisions is on ethical and ecological concerns regarding environmental and social issues.
    • Sustainable marketing ensures that long-term customer, stakeholder and company requirements and needs are met.

    Sustainability and Greenwashing

    • Many companies have extolled their green credentials or sustainability initiatives on social media, but these declarations can be challenged.
    • Greenwashing (and similar concepts like charity washing) falsely presents a company's products, services, or policies as environmentally friendly when they aren't.
    • This misrepresentation can lead to reputational damage and loss of trust.

    Sustainability in the Brundtland Report

    • The Brundtland report (1987) introduced the modern concept of sustainable development.
    • Defining sustainability as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
    • Businesses activities must be environmentally responsible.
    • Companies must be profitable also.

    Brand, Consumers, and Values

    • Marketers should align brand attributes with the values of target customers to establish successful brands.
    • Brands that are seen as offering value and quality are attractive to many customers.
    • Consumers will often consider social and environmental factors when deciding on a brand or products.

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    Description

    Test your knowledge on key marketing strategies and analysis frameworks that are critical for business success. This quiz covers concepts including the McKinsey 7S Framework, competitive differentiation, and the BCG Matrix. Perfect for both students and professionals looking to strengthen their understanding of marketing principles.

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