Podcast
Questions and Answers
What is the first stage of the business buying process?
What is the first stage of the business buying process?
In the Supplier Selection stage, the team only reviews the proposals submitted by the invited suppliers.
In the Supplier Selection stage, the team only reviews the proposals submitted by the invited suppliers.
False
What does an order-routine specification consist of?
What does an order-routine specification consist of?
The final order with the chosen supplier/s, technical specifications, quantity needed, expected time of delivery, return policies, and warranties.
In the Performance Review stage, the buyer may get in touch with _______________ to rate their satisfaction.
In the Performance Review stage, the buyer may get in touch with _______________ to rate their satisfaction.
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What is the main reason why it is essential for students to know what comprises a consumer and business market?
What is the main reason why it is essential for students to know what comprises a consumer and business market?
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In the business buying process, the supplier selection stage comes before the proposal solicitation stage.
In the business buying process, the supplier selection stage comes before the proposal solicitation stage.
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What is the purpose of the proposal solicitation stage?
What is the purpose of the proposal solicitation stage?
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The business buying process involves several stages, including _______________ and performance review.
The business buying process involves several stages, including _______________ and performance review.
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Match the following stages of the business buying process with their descriptions:
Match the following stages of the business buying process with their descriptions:
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The business buying process is only applicable to individual consumers.
The business buying process is only applicable to individual consumers.
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Study Notes
Standpoint for Strategic Thinking
- Michael Porter's standpoint for strategic thinking involves three main strategies:
- Cost Leadership: operating at the lowest production and distribution cost to price lower than competitors and gain market share
- Differentiation: achieving superior performance in a vital customer benefit area, such as service, quality, style, or technology
- Focus: focusing on one or more narrow market segments and practicing either cost leadership or differentiation within the target segment
Program Formulation
- Once a business unit has developed its principal strategies, it must work out detailed supporting programs
- Marketing programs must be tentatively formulated, and their costs estimated using Activity-Based Cost (ABC) accounting
- Programs must be justified based on their potential results
Implementation
- The implementation stage involves putting marketing strategies and plans into action
- Assignments are given to individuals and groups, addressing the who, where, when, and how of reaching goals and objectives
Feedback and Control
- The firm must track results and monitor new developments in the internal and external environment
- A company's strategic fit with the environment will inevitably erode due to environmental changes
- Peter Drucker emphasized the importance of "doing the right thing" (effectiveness) over "doing things right" (efficiency)
Marketing Planning
- Planning involves forecasting future events and identifying strategies to achieve organizational objectives
- Marketing planning entails crafting activities connected to marketing objectives and the changing marketing environment
- A marketing plan sets out how to put marketing strategy into practice, with the customer as the starting point
The Marketing Plan Process
- Defining the Business Mission: setting the limitations for all succeeding decisions, objectives, and strategies
- Situation Analysis: examining the Strengths, Weaknesses, Opportunities, and Threats within the market and internal environment
- Benefits to Company and Consumers: using marketing research to increase sales and profit, fight competition, boost goodwill, and reduce marketing risk
Marketing Research
- Similar to Military Intelligence: gathering commercial intelligence through systematic study and analysis
- Applied Research: using marketing research to solve marketing problems and provide practical value
- Connected with MIS: using marketing research as a component of Marketing Information System (MIS) to solve marketing problems and make marketing decisions
Importance of Marketing Research
- Provides Valuable Data: providing data to decision-makers to make informed decisions
- Studies Consumer Behavior: providing data on demographics, customer opinions, and other consumer behavior
- Selects Promotional Techniques: helping companies select suitable sales promotion techniques
- Supplies Marketing Information: providing data on market situation, competition, and opportunities
- Evaluates Marketing Performance: helping companies evaluate their marketing performance and improve it
Steps in Marketing Research
- Stage 1: Formulating the Marketing Research Problem
- Stage 2: Statement of Research Objectives
- Stage 3: Research Design
Business Buying Process
- Proposal Solicitation: inviting qualified suppliers to propose
- Supplier Selection: reviewing proposals and selecting the best supplier
- Order-Routine Specification: preparing an order-routine specification with the chosen supplier
- Performance Review: reviewing supplier performance and deciding whether to continue, modify, or end the arrangement
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Description
This quiz covers Michael Porter's standpoint on strategic thinking, including the concepts of cost leadership, differentiation, and focus strategies.
