Business Explain: Management

Showing posts with label Management. Show all posts

Simultaneous Production and Consumption meaning what?

Customers or their possessions must be present during service delivery; Services are often difficult to distribute.

Intangibility meaning what?

It is difficult for customers to evaluate quality, especially before purchase and consumption; Customers cannot take possession of a service.

What is a product?

Something that buyers can acquire via exchange to satisfy a want or a need.

Consumer Product: Is any tangible product for sale that is used by a person or household for non-business purposes.

Business Product: Are goods that are sold to other businesses, used for resale and used to produce other goods.

Convenience Product: Maximize availability and ease of purchase. Inexpensive, routinely purchased products. Little time and effort to acquire.

Shopping Product: Products that consumers will spend time and effort to obtain. Consumers shop different options to compare prices, features, and service. Focus on differentiation through imagine and symbolic attributes.

Unsought Product: Products that consumers are unaware of or a product that consumers do not consider purchasing until a need arises.

Specialty Product: Unique, one-of-a-kind products that consumers will spend considerable time, effort, and money to acquire.

What are the 4 P's of marketing?

Identification, selection and development of a PRODUCT,
Determination of its PRICE,
Selection of a distribution channel to reach the customer's PLACE and
Development and implementation of a PROMOTIONAL strategy

What is a market and what do we mean by exchange?

• Market is a collection of buyers and sellers, OR a group that has similar needs that can be met by a product.
• Exchange is the process of obtaining something of value from someone by offering something in return.

What do we mean by the four different types of utility (time, place, possession, and psychological utility)?

• Time Utility: Products available when the customers want them.
• Place Utility: Products available where the customers want them.
• Possessing Utility: Transfer of ownership or title from the marketer to the customer.
• Psychological Utility: Delivers positive/experiential or psychological attributes that customers find satisfying.

Know some of the major marketing strategy decisions.

Market Segmentation & Target Marketing: The identification and selection of one or more target markets.
Market Program Decisions: Successful programs depend on a carefully crafted blend of the 4 Ps.
Branding and Positioning: What customers think of the company and its offerings.

What do we mean that a product becomes a commodity?

When companies in the same industry offer the same basic products to the same customers. At the point, for the customers, all they care about is the price.

Know the different stages of the strategic planning process (situation analysis and marketing plan).

(1) Situation Analysis: An in-depth analysis of the organization's internal & external environment.

(2) Marketing Plan: A written document that provides the blueprint or outline of the organization's marketing activities, including the implementation, evaluation, and control of those activities.

What do we mean by organization mission and vision?

• Organization Mission: Answers the question "What business are we in?". It's a clear and concise statement that explains the organization's reason for existence.

• Organization Vision: Answers the question "What do we want to become". It's a future oriented statement that represents where the organization is headed.

What are the elements of a good mission statement?

(1) Who are we?
(2) Who are our customers?
(3) What is our operating philosophy (basic beliefs, values, ethics, etc.)?
(4) What are our competitive advantages?
(5) What are the responsibilities with respect to being a good steward of our human, financial, and the environmental resources?

What do we mean by the width of a mission statement?

When it comes to crafting a mission statement, management should be concerned about the statement's width. If the mission is too broad, it will be meaningless to those who read and build upon it.

What is corporate strategy?

The central strategy for utilizing and integrating resources to carry out the organization's mission and achieve the desired goals and objectives.

What is business-unit strategy?

Determines the future direction of each business unit, including its competitive advantages, the allocation of its resources, and the functional business areas.

What is a strategic business unit?

A division of a large company that has its own distinct mission and its own competitors.

What do we mean by competitive or differential advantage?

- Competitive advantages allow a company or country to produce a good or service at a lower price for customers.

-Differential advantage is created when a firm's products or services differ from its competitors and are seen as superior than a competitive offering.

What is a marketing plan?

Detailed formulation of the actions necessary to carry out the marketing program.

Parts of the marketing plan:

• Executive Summary
• Situation Analysis
• SWOT Analysis
• Marketing Goals & Objectives
• Market Strategy
• Market Implementation
• Evaluation and Control

Why is the executive summary very important?

It may be the only element of the marketing plan read by many people. It should be the last element written because it is easier and more meaningful to write after the marketing plan has been developed.

What is the purpose and significance of the Marketing plan?

It's the handbook for marketing implementation, evaluation, and control. The hallmark of a well-developed marketing plan is its ability to achieve its stated goals and objectives.