Podcast
Questions and Answers
What is the main focus of market orientation?
What is the main focus of market orientation?
- Cost reduction in production
- Internal capabilities of the organization
- Creating premium-priced products
- Customer needs and market research (correct)
Which statement accurately describes cost leadership with proximity?
Which statement accurately describes cost leadership with proximity?
- Production costs are lowered while maintaining high prices
- Profit margins are increased by enhancing product quality
- The focus is on creating unique products at low costs
- Production costs are reduced, leading to lower prices (correct)
How does differentiation strategy primarily generate profit margins?
How does differentiation strategy primarily generate profit margins?
- By offering the lowest prices in the market
- By appealing to niche markets only
- By creating products that are similar to competitors
- By focusing on product quality rather than cost (correct)
In which situation would a business likely employ a cost focus strategy?
In which situation would a business likely employ a cost focus strategy?
What is the key characteristic of product orientation?
What is the key characteristic of product orientation?
What is the primary goal of penetration pricing?
What is the primary goal of penetration pricing?
Which pricing strategy involves setting different prices for the same product based on market segments?
Which pricing strategy involves setting different prices for the same product based on market segments?
What does absorption pricing include in its pricing strategy?
What does absorption pricing include in its pricing strategy?
Which method of international market entry involves allowing others to use a company's brand?
Which method of international market entry involves allowing others to use a company's brand?
Which pricing strategy adjusts prices based on customer perception and psychological impacts?
Which pricing strategy adjusts prices based on customer perception and psychological impacts?
Which strategy involves forming a partnership without changing ownership structures?
Which strategy involves forming a partnership without changing ownership structures?
What is a characteristic of marginal cost pricing?
What is a characteristic of marginal cost pricing?
What does organic growth refer to in an international business context?
What does organic growth refer to in an international business context?
What does market share represent in an industry?
What does market share represent in an industry?
Which of the following best defines market growth?
Which of the following best defines market growth?
Which part of the product position map corresponds to high price and low quality?
Which part of the product position map corresponds to high price and low quality?
What does the concentration ratio measure in an industry?
What does the concentration ratio measure in an industry?
Which of the following is NOT a part of marketing planning?
Which of the following is NOT a part of marketing planning?
What are SMART objectives designed to achieve?
What are SMART objectives designed to achieve?
Which type of research involves compiling existing information to draw conclusions?
Which type of research involves compiling existing information to draw conclusions?
Which part of the Boston Consulting Group matrix is characterized as having high market share and high market growth?
Which part of the Boston Consulting Group matrix is characterized as having high market share and high market growth?
What is 'cost-plus pricing'?
What is 'cost-plus pricing'?
Which of the following accurately describes branding?
Which of the following accurately describes branding?
Flashcards
Market Orientation
Market Orientation
A marketing approach focusing on understanding customer needs and creating products to satisfy those needs.
Product Orientation
Product Orientation
A marketing approach focusing on internal capabilities and developing products based on what the company can make.
Cost Leadership
Cost Leadership
A business strategy aiming to be the lowest-cost producer in the industry.
Differentiation
Differentiation
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Cost Focus
Cost Focus
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Market Share
Market Share
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Market Growth Rate
Market Growth Rate
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Market Leader
Market Leader
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Market Concentration
Market Concentration
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Concentration Ratio
Concentration Ratio
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Primary Research
Primary Research
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Secondary Research
Secondary Research
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Product Life Cycle
Product Life Cycle
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Boston Consulting Group (BCG) Matrix
Boston Consulting Group (BCG) Matrix
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Cost-Plus Pricing
Cost-Plus Pricing
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Penetration Pricing
Penetration Pricing
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Price Discrimination
Price Discrimination
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Dynamic Pricing
Dynamic Pricing
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Organic Growth
Organic Growth
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Franchising
Franchising
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Joint Venture
Joint Venture
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Qualitative Data
Qualitative Data
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Quantitative Data
Quantitative Data
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Study Notes
Marketing
- Marketing is the process of identifying, anticipating, and satisfying customer requirements profitably.
- Market orientation focuses on outward-looking market research and customer needs to create products.
- Product orientation focuses on creating a product first based on internal capabilities.
- Cost leadership is when a business becomes one of the lowest-cost organizations in its industry.
- Cost leadership with parity lowers production costs but keeps prices the same to increase profit margins.
- Cost leadership with proximity lowers production costs to lower the price of the product.
- Cost focus is when a company is one of the lowest-cost organizations in a niche market.
- Differentiation creates products distinct from competitors to appeal to customers, focusing on quality over cost.
- Differentiation focus allows businesses to gain a competitive advantage by focusing on a particular marketing segment. This often includes high-end brands.
Market Share
- Market share is the portion of the total value of sales revenue in a specific industry held by an organization.
- Market share = (sales revenue / total sales in market) * 100%
- Market leaders are businesses with the largest market shares in their respective industries.
Market Growth
- Market growth is the rate at which the size of an industry increases.
- Market growth rate = ([Current market size - Original Market Size] / Original Market Size) * 100%
Marketing Planning
- Marketing Planning is a process for formulating marketing strategies and tactics to help a business achieve its goals.
- SMART objectives are Specific, Measurable, Achievable, Relevant and Time-bound objectives.
- Tools of marketing planning include segmentation, targeting, positioning, niche and mass markets, and unique selling points.
- Types of marketing segmentation include demographics, geographic, psychographic and behavioral targeting.
Market Positioning
- Market Positioning is the process a business goes through where they create a product's identity, ultimately determining the consumer's perception of the product.
- Products can be categorized as Premium (high price, high quality), Bargain (low price, high quality), Cowboy (high price, low quality) or Economy (low price, low quality).
Market Research
- Market research involves the collection, compilation, and analysis of information about a market.
- Market research can be categorized as primary (surveys, interviews, focus groups, observation, and test marketing) or secondary (financial reports, government publications, online databases, and secondary market research reports).
Product Life Cycle
- Product life cycle stages: Research and development, launch, growth, maturity, decline
Product Portfolio
- Product portfolio is the collection of all the products owned by a business at a given time.
- Boston Consulting Group (BCG) matrix is a marketing planning tool to help plan for a balanced product portfolio
- BCG matrix categories include Dogs (low market share, low market growth), Question marks (low market share, high market growth), Cash cows (high market share, low market growth), and Stars (high market share, high market growth).
Pricing Strategies
- Cost-plus pricing is calculated by determining the cost of production and adding a percentage as profit to determine the selling price.
- Limit pricing is a price set by a monopolist to discourage economic entry into a market.
- Penetration pricing sets prices lower than competitors to attract customers and gain market share.
- Price discrimination involves setting different prices for the same product depending on the market segment.
- Psychological pricing is a price which leads to a more positive psychological impact on customers.
- Dynamic pricing is a flexible pricing mechanism, often used by internet-based companies.
- Price leadership is when the market leader sets a price and other competitors follow.
- Target pricing is when the price is determined based on the return on investment the company wants.
- Absorption pricing includes variable and fixed costs in calculating the selling price.
- High-low pricing is when prices are routinely higher than competitors, but are lower during promotions or sales.
- Marginal cost pricing is when the price of goods is equal to the additional cost of producing an extra unit.
Methods of operating internationally
- Organic growth, franchising, licensing, joint ventures, strategic alliances, and acquisition are methods for businesses to operate internationally.
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Description
Test your knowledge on key marketing strategies including market orientation, product orientation, and cost leadership. Explore how these strategies affect a company's competitive advantage and market share. This quiz will help you understand the fundamentals of effective marketing.
