Viva Voce Question Complte

[email protected] 1. Why bother to plan? To ensure survival • To compete cost effectively and efficiently • To expand horizontally and laterally • To motivate employees • To satisfy the firm’s responsibilities to all stakeholders 2. What is the strategic plan and what is its relationship to the marketing plan? Strategic planning is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves decision-making about production and operations, finance, human resource management and other business issues. The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives. Marketing has a key role to play in strategic planning, because it is the job of marketing management to understand and manage the links between the business and the “environment”. 3. What are the criteria used in establishing a good Mission Statement? A mission statement – should be short and simple, which at the most basic defines why your business exists, and that’s for all your employees, customers, shareholders, and partners. A mission statement is a guiding light for a business and the individuals who run the business. It is usually made up of three parts: •

Vision - big picture idea of what you want to achieve.

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Mission - general statement of how you will achieve your vision.

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Core Values - how you will behave during the process.

Each of these three elements is an important aspect of the businesses guiding light. 4. Should Mission Statements be communicated to all members of the firms? Why? It should be shared by all members of your firm and widely communicated to all involved including clients and others in the legal community. At the very least, your firm's mission statement should answer the three listed key questions. This first question addresses the purpose of your firm or organization. Start by listing specific legal situations that you can address. 5. Describe Mission Statements. • Mission statements defines the fundamental, unique purpose of an organisation that sets it apart from its competitors. • It reflects management’s vision of what the organisation is trying to do and how the organisation should compete now and in the future. • Mission statements are philosophical statements that provide a sense of purpose and direction for the organisation. 6. What are the danger(s) in establishing/developing a mission statement? ie; What are the issues to avoid in creating a Mission Statement. • Avoid marketing myopia-too narrow minded • Statements are too long, don’t cover all aspects • Statement are boring, and confusions • To good too be true • Too disingenuous, not genuine. 7. Why do we need a time frame/period for our marketing plan? (Sets the timeframe for implementation, and guides the time period to be covered) Timing is important to determine when it’s the best time to implement strategy is often criticise. Taking right actions at the wrong time is as bad as taking wrong action at the right time. Essential part of planning- media Gantt chart.

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8. What are the determinants for setting the "time period" for a marketing plan? Timing is important to determine when it’s the best time to implement strategy is often criticise. Taking right actions at the wrong time is as bad as taking wrong action at the right time. Essential part of planning- media Gantt chart. Determinants: Strategy and Objective. 9. What Timeframe is most common for a strategic plan as compared to a marketing plan? Example, advertising wrong time, wrong target segment. 10. What are the Key elements of the planning process? • Strategic Analysis (business definition, external environment-remote/near, internal capability and CSF. • Strategy development – marketing, profitability objectives, market strategies, STP, marketing Mix, 7Ps. • Implementation- Budget and marketing program • Evaluation and Control. 11. What are the Components of a strategic plan? 1) Plan development, 2) Plan Execution, 3) Plan Review. p 12. Why do we write mission statements? • Provides a sense of direction for the planning unit and limits and delimits the scope of the strategic marketing plan. Mission statements are philosophical statements that provide a sense of purpose and direction for the organisation. 13. What is the relevance of Critical Success Factors or Key Success Factors when conducting a situational analysis? Critical Success Factors (CSFs) are those relatively few factors that are critical for an organisation, in a similar competitive position to the organisation under review, to have in order to succeed. CSFs are the superior skills and resources that do the most to either lower costs or create superior customer value. They are also referred to as ‘Key Success Factors (KSFs). 14. Describe the PLC. PLC is a descriptive model, which can be used as a systematic framework for explaining market dynamics. The PLC shows the evolution of a product from birth to death, and indicates the objectives and strategies that a marketer can pursue at different stages of the PLC. These stages include Introduction, Growth, Maturity and Decline. 15. What's the danger or trap a lot of managers fall into when discussing the PLC concept? • It is often used as a predictive tool • Do not assume the decline stages are automatic • Do not assume a smooth curve through the PLC • Often the Marketing manager’s task it to rejuvenate the life cycle. It must be used Intelligently and Thoughtfully. 16. Why do we need to make note of The Market Life Cycle as distinct from the Product Life Cycle? 17. What are the measures that can be used for each axis of the PLC? • Vertical Axis: Sales and Volume • Horizontal Axis: Time(Years), duration 18. What are the strengths/weaknesses of the PLC? Weaknesses: • Difficulty in defining the appropriate market • The length of the various stages differs for different products or industries. It is often not clear what stage the product/brand is at. • Industry takes too many different paths so that the PLC pattern, which describes one pattern, does not always hold. 19. What factors should marketing managers be aware of when using the PLC? 20. What are the difficulties faced when using the PLC concept? • Difficulty in defining the appropriate market • The length of the various stages differs for different products or industries. It is often not clear what stage the product/brand is at. -2-

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Industry takes too many different paths so that the PLC pattern, which describes one pattern, does not always hold.

21. What are the indicators of a position on the product life cycle? Characteristics: Sales, Price, Profits (per unit), Customers and Competition 22. In what way(s) does the PLC assist in establishing marketing objectives? 23. Describe the BCG. The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. The BCG Growth-Share Matrix is a portfolio planning model based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". How is it used? At what level in the organisation structure is the BCG usually applied? 24. What do we measure on each axis of the BCG? Vertical Axis: Market Growth Rate Horizontal Axis: Relative Market Share 25. How do we calculate - Relative market share for the BCG? - Market growth rate? 26. What are the arguments For/Against using the BCG? Is there a better alternative to the BCG? For: BCG Matrix is simple, uses common measure and easy to understand and interpret. Against: It is difficult to define market and hence calculate market share and market growth. Factors other than relative market share and market growth influence cash flow. It provides little insight into how one business unit might be compared with another in terms of investment opportunity. 27. Describe the circumstances when it would not be advisable to adopt the BCG? • The assumption that relative market share is linked to profit, thereby indicating business strength, does not hold as there are many other factors that influence business position including financial resources, marketing expertise and access to distribution channels. • The assumption that market growth is an adequate indicator of market attractiveness is similarly flawed as there are many other factors that influence market attractiveness. These include the Porter Five Forces. 28. What's the relationship between the BCG and the GE matrix? GE Matrix is a more detailed and sophisticated than BCG Matrix. GE Matrix takes into consideration the market attractiveness factors (which may include market growth rate) and Business strength factors (which usually addresses a firm’s relative position especially against competitors and influences on relative market share). The BCG approach overlooked a number of important factors that determine market attractiveness and business strength. 29. Describe the GE matrix. How is it used? The GE Matrix is similar to the BCG Matrix, two dimensional. However, instead of using a single factor as the basis of determining market attractiveness and a single factor as the basis of determining business position. The GE Matrix uses a variety of factors (multifactor portfolio model). Additionally the GE model divides each dimension into high, medium and low categories, thereby proving nine strategies positions compared to the four strategic positions in the BCG. At what level in the organisation structure is the GE usually applied? For corporate level strategists to assign investment priorities in their various business units and to provide a guide for resource allocation. 30. What are the advantages/disadvantages of the GE matrix? Advantages: • Multi factor approach • Wide range of measures is realistic, effectiv, pragmatic Disadvantages: -3-

• More detailed evaluation is required than with tools such as PLC and BCG • Need to choose factors carefully • Need to make rating judgement for each factor carefully 31. Describe the circumstances when you would use the GE matrix? When assigning investment priorities in various business units and to provide a guide for resource allocation. 32. What types of factors would one expect to see under each of the GE axes? Vertical axis: Market Attractiveness Horizontal axis: Business position 33. When would you use the BCG matrix and when would you use the GE? 34. What are the labels for each axis of the GE matrix? Vertical axis: Market Attractiveness Horizontal axis: Business position 35. Is there a relationship between the market life cycle and the portfolio matrix? 36. Define Gap Analysis? When is it used? Gap analysis is a tool for analysing strategic options for closing a revenue (or a profitability) shortfall between objectives and expected performance via c continuation of current marketing strategies over the next few years. Gap analysis is a tool that helps a company to compare its actual performance with its potential performance. At its core are two questions: "Where are we?" and "Where do we want to be?” The goal of gap analysis is to identify the gap between the optimized allocation and integration of the inputs, and the current level of allocation. This helps provide the company with insight into areas which could be improved. At what level in the organisation structure is Gap Analysis usually applied? performed at the strategic or operational level of an organization 37. What are the arguments For/Against using Gap Analysis. 38. Describe the Ansoff Matrix. Strategic marketing planning tool that links a firm's marketing strategy with its general strategic direction and presents four alternative growth strategies as a table (matrix). These strategies are seeking growth: (1) Market penetration: by pushing existing products in their current market segments. (2) Market development: by developing new markets for the existing products. (3) Product development: by developing new products for the existing markets. (4) Diversification: by developing new products for new markets. When used? At what level in the organisation structure is the Ansoff Matrix usually applied? Top level management 39. What does the Ansoff Matrix tell a planner? The Ansoff Matrix provides a basis for considering where and how the organisation will derive its future revenue and profitability. Four product market strategic options: Market penetration, market development, New product development and Diversification. These four provide the strategist with a framework for considering the potential revenue and profit that can be achieved for each year of the time frame of the strategic marketing plan. 40. What are the arguments For/Against for using the Ansoff Matrix? 41. Do you see a difference between a Market audit and a SWOT Analysis? 42. Is there a difference between a market audit and a marketing audit? Market audit is a fundamental part of the marketing planning process, not only it is the beginning but the points in implementation both internal and external. Market audit covers only for marketing areas and NOT for business area. Marketing audit clarifies opportunities and threats for internal and external level. It is done by 3 rd party outside the organisation. It is a comprehensive periodic exam of company environment, -4-

strategic objective to determine problem areas and opportunities and recommend a plan for improvement. 43. What is a SWOT Analysis? SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. 44. If you get conflicting positions on the various tools of analysis you use. (eg PLC c/- BCG) • What does this indicate to you? • What action(s) should you take? 45. What ways/techniques are available for analysing competitors and competitor's activities? 1) Porter 5 Forces: a model that used to make an analysis of industry attractiveness by the identification of 5 fundamental competitive factors. 2) Benchmarking: Is used to ascertain on how well you are doing against your competitor. Competitor can be a source of information about the general market. 46. What’s the meaning of a situational analysis? Situation analysis is a marketing term, and involves evaluating the situation and trends in a particular company's market. The situational analysis covers the following key areas: Current Products, Current Target Market, Current Distributor Network, Current Competitors, Financial Analysis, External Forces. 47. How important is the Situational Analysis in the Marketing Planning Process? 48. How important is the Situational Analysis in the marketing plan? Why? 49. What are the key areas of an 'internal analysis'? The source of competitive advantages and Critical Success Factors. 50. What are the key areas of an 'external analysis'? 51. Why should a marketing planner be aware of the difference between internal and external analysis? 52. Why do we need to quantify the SWOT analysis wherever possible? 48. Define marketing. ‘Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchange processes with target groups that satisfy customer and organizational objectives.’ ‘Marketing is an organisational function and a set of processes for creating, communicating and delivering customer value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders.’ 49. Define the marketing concept. • Management philosophy according to which a firm's goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants. • The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. 50. Is there a difference between the definition of marketing and the marketing concept?

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Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Kotler.)

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Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably - (The Chartered Institute of Marketing (CIM).)

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The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or her needs, the focal point of all business activities. It is driven by senior managers, passionate about delighting their customers.

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This customer focused philosophy is known as the 'marketing concept'. The marketing concept is a philosophy, not a system of marketing or an organizational structure. It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.

51. We have talked in class of the need to link the components of a marketing plan. What was meant by this term LINK? 52. Why do some products experience long successful lives whilst others have very short life cycles? 53. What are the THREE most important components of a marketing plan? And importantly why? 54. Where in the plan would you find the analysis of the company’s financial health? 55. What is a 'Strategic Plan'? Compared to a Strategic Marketing plan? • Strategic marketing planning facilitates inter-departmental involvement and strategic thinking • Emphasis in marketing oriented organisations strategic thinking and company wide decision making • Shared understanding of the challenges the company is facing and the strategic options it may pursue are developed throughout the organisation. • Focuses on the development of customer and competitor strategies, the implementation of these strategies and the achievement of desired performance outcomes. A significant means for the achievement of a market orientation. 56. What are the characteristics of a marketing plan? A good Marketing Plan should be: • Driven from your company’s Business Plan • A marketing ‘bible’ for your business and brand – clearly presented and easily accessible so it can be used to brief key business personnel and external supports/partners including your bank. • Based on adequate but not excessive analysis. • Based on your company’s 5P’s (Price, Product etc.). • Grounded in accurate segmentation and targeting. • Actionable and measurable – set objectives and targets and devise methods of measurement. You have to look at each task and measure the impact it had on the return gained on the investment. • A living dynamic document that is regularly reviewed and updated to reflect market influencing trends and help you make the most of new opportunities.

57. What are the differences between objectives, strategies and tactics?

Objective – something that one’s efforts or actions are intended to attain or accomplish; purpose; goal; target. Marketing Meaning: A measurable end point (i.e. 2,000 contest entries, 200% Web traffic increase, DM/Email Response rate, Mentions in X, Y or Z media outlets, etc.). If you can’t look back on a campaign and say yes or no to an objective – it wasn’t an objective in the first place. -6-

Strategy – a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result: a strategy for getting ahead in the world. Marketing Meaning: This is a campaign idea or a roll-up of a series of initiatives that all fit on the same plan (i.e. If objective is X number of sign-ups for an email newsletter, then a possible strategy would be hold a contest with an opt-in option for a newsletter). Tactic – An expedient for achieving a goal; a maneuver. Marketing Meaning: The actions that are actually taken to achieve objectives or part of an objective. In above example of contest sign-ups, individual tactics might be: promote contest in paid media, send out press release, etc. A tactic cannot really be broken down further, it is a specific task that works toward one or more objectives. Strategies = the approaches you will take Objectives = the measurable steps to achieve the strategies Tactics = the tools you will us 58. What are the basic characteristics of objectives? The characteristics of a good objective, is the acronym, "SMART." It stands for "Specific, Measurable, Achievable, Realistic and Time-Bound." 59. What is the difference between a corporate objective and a marketing objective and give examples that are SMART?

S pecific: clear about what, where, when, and how the situation will be changed; M easurable: able to quantify the targets and benefits; A chievable: able to attain the objectives (knowing the resources and capacities at the disposal of the community);

R ealistic: able to obtain the level of change reflected in the objective; and T ime bound: stating the time period in which they will each be accomplished.

60. What are the general issues one would expect to see marketing objectives cover? Provide examples. 61. What do we mean by the phrase: a link between objectives and the situation analysis”? 62. Why have an Executive Summary in a marketing plan? An Executive Summary is an outline of the entire report. It serves two basic purpose. First, it provides essential information for those who might not have the time or inclination to wade through the entire document. Second, it emphasises, to those who have read it, the most essential points that need to be remembered or to be revisited for further scrutiny. 63. What's the difference between an Executive Summary and an Introduction? An introduction section serves the purpose of introducing the reader to the purpose of the strategic marketing plan, the background of the organisation and presenting other information that clarifies any questions a reader might have as to why the document was written. 64. What are the 5 elements of a good executive summary? • A statement of the business definition • An overview of the most important external environment factors likely to impact on the planning unit, plus critical success factors. • The organisation’s capabilities to overcome these threats or take advantage of the opportunities. • Marketing objectives • Competitive positioning strategies • Marketing mix strategies • Budget recommendation. 65. What’s the difference between a report and a marketing plan? A marketing plan is a document that contains a considerable variety of information including data and information collection, analysis, interpretation and synthesis. Differences in the sufficient depth of information and not reducing communication effectiveness because of information overload. The differences between these two is the likely impact it will make on the -7-

target market, that is, the organisation’s decision makers who have the responsibility for assessing and approving the recommendations contained in the strategic marketing plan. 66. What is involved in managing marketing planning as a process? 140. Discuss the term linkages in terms of the marketing plan? What are they and what ones are important? 67. What is meant by the phrase 'Marketing Mix'? The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. Read on for more details on the marketing mix. 68. What are the elements of the Marketing Mix? Discuss. •

Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.

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Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

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Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

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Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. Extended Marketing Mix:

 People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers. Process – procedures, mechanisms and flow of activities which lead to an exchange of value.  Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered 69. What is the difference between a marketing plan and the marketing planning process? 70. What is the difference between a market plan and a marketing plan? 71. What is meant by "achieving harmony, consistency and leverage" in Marketing? Marketing mix. 4Ps must be consistent with each other. E.g: LV price and promotion strategy must be all consistent and leverage with each other.

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72. Can you illustrate the difference between a marketing 'need' and a marketing 'want', when discussing the marketing concept of "satisfying customer's needs and wants"? 73. What is the difference between customers and consumers when discussing marketing? Customer: customer means who purchases the product from the marketer or from the retalier or from the wholesaler. here we dont brother about who uses the product. Cosumer: cosumer means who uses the product ofcourse purchased by the customer or prospect.here we cosider finally who is going to use the product we call them as cosumer. Customer is a person who buys goods or services from a shop or business. Consumer is a person who consumes or uses a product. 74. Why is understanding the difference between customers and consumers important in the context of establishing a marketing plan? 75. Why is being able to 'define the market' so important for a marketing manager? 76. Define segmentation. What are the steps in segmenting a market? Market segmentation is a process of partitioning/dividing a market into groups of potential or existing customers who have similar characteristics and similar needs. Because of this they are likely to exhibit similar purchase behaviour. Market segmentation is the first of three important steps in developing marketing strategy. Segmentation groups customers with similar needs and responses; targeting determines which segments to serve. The objectives of market segmentation are to more accurately meet the needs of selected customers in a more profitable way. 77. Discuss the marketing mix and value.

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The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategy position of a product in the marketplace. The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives. 78. What are some of the bases/methods by which you can segment a market? Methods: Cluster Analysis Cluster analysis is a set of techniques for discovering structure, or groups of individuals, within a set of data comprising measures on each individual. The measures could be, for example, an attitudinal battery. There is no dependent variable – all variables are treated equally. Conjoint Analysis This technique aims to decompose preference into component parts, such as brand, quality, and price. This technique views products as bundles of attributes and uses an experimental design to vary attribute levels to create product descriptions. Survey respondents then rank the products and the analysis works out how much each attribute contributes to preference. It is a good technique for benefit segmentation. Bases: Demographics (The market is divided into segments based on the variables such as age, family size, sex, religion, race, generation and social groups.), Socioeconomic Characteristics, Product Usage, Psychographics (Here the buyers are divided into groups on the basis of the life stlye or personality or values.), Benefits Sought 79. Why is segmentation important in marketing planning? • Market segmentation is the process of partitioning the marketplace into customer/prospect groupings that have similar characteristics and are likely to exhibit similar behavior. • As a key component of an effective strategic marketing plan, market segmentation can facilitate the insightful market analysis, the discovery of underserved niches, and the use of approaches that achieve competitive advantage. • The basis of successful market segmentation is well conceived market research that provides insights into meaningful customer traits and guides prioritization of possible target markets and marketing techniques. 80. Define a Strategy. • A strategy is a plan of action designed to achieve a particular goal • Corporate strategy is the pattern [italics added] of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities • Define strategy as "the framework which guides those choices that determine the nature and direction of an organization. • It is perspective, position, plan, and pattern. Strategy is the bridge between policy or high-order goals on the one hand and tactics or concrete actions on the other. 81. What is value-based marketing? Value-based marketing is the realization that sales cannot be successful without marketing. It is the understanding that marketing creates the very definition of who you are and what you offer. It is the understanding that marketing creates the very definition of who you are and what you offer. It is the expectation that marketing must routinely demonstrate – and be held accountable for – its value to the company over time. Building value is a continuous process that begins with messaging: creating the value propositions that motivate and inspire your salespeople to sell and your customers to buy. These messages are then mapped to the proper audiences and executed through a variety of deliverables. It is consistency in this process over time that builds value.

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All customers want good products and no customers want to overpay. Regardless of the product category, it is the customers’ perception of value that will determine which vendor gets their business. For this reason, it is important for companies who make and price products to understand how much their products are worth. 82. At what stage in the planning process should we use the 4Ps? Strategy development stage under the marketing mix strategies. 83. What are contingency plans? A Contingency plan is a plan devised for a specific situation when things could go wrong.They are sometimes known as "Back-up plans", "Worst-case scenario plans" or "Plan B". 84. Why have contingency plans? Every business and organization can experience a serious incident that can prevent it from continuing normal operations, contingency plans are often developed to explore and prepare for any eventuality The management of the organization have a responsibility to recover from such incidents in the minimum amount of time, with minimum disruption and at minimum cost. 85. Are contingency plans the same as "What If!!" questions? 86. Is there any link between having contingency plans in your marketing plan and having assumptions? 87. Under what circumstances would you include Assumptions as an important heading in your marketing plan? 88. Discuss reasons why the financial budget is a key component of the marketing plan? A budget is a plan that outlines an organizations financial or operational goals. It is an action plan. It helps a business allocate resources, evaluate performance, and formulate plans. Understanding the importance of budgeting is the first step in successful financial planning. Budgets provide a feasibility analysis. They can help develop a business model, review your key assumptions, and identify resource and capital needs. Budgets can be used to find funding. They demonstrate the potential of your business to investors and lenders. Budgets can also be used as a management tool. They can help you establish milestones and require accountability for accomplishing the milestones. They can help identify risks and show benchmarks. This will help the small business owner make the necessary adjustments to avoid the risks, to reach the milestones, and to measure up to benchmarks 89. From time to time during the semester the term ‘linkage’ has been referred to as a key to a successful marketing plan. What are the major linkages of the components of the marketing plan with the plan’s financial budget? 90. What elements should be included in a marketing plan’s financial budget? 91. Why do we highlight the need to be aware of cash flow and profitability when preparing and implementing a marketing plan? Need to have an insight into the financial health of an organisation (to be done at situation analysis stage) • Helps to determine feasible objectives and strategies • The impact of different strategies on profit and short and long run cost may be different- hence it is VITAL to evaluate marketing alternatives in financial terms • Financial analysis are often required to support specific recommendations • Fundamental financial issues needs to be integrated into marketing planning 92. Why is it important to have an understanding of the breakdown between fixed and variable costs when looking at pricing decisions? Variable cost: Includes purchase of materials, direct labor, packaging, transportation costs, and any other costs associated with making and shipping a product.

93. Financial planning involves two major activities. undertaking these activities. - 11 -

What are they?

Discuss problems in

94. What are some important considerations in choosing the financial information to be used for marketing planning and control? 95. What two factors complicate the problem of making future projections about the financial performance of marketing programs? 96. How does improving product quality lower the cost of producing a product? Higher quality products have resulted in improved profit margins. In fact, consumers make buying decisions based on their perception of which products had better quality. Customer perceived value is related to the quality and reliability of the product. Hence, product value increases because of an improved customer perception of the value of the product and lower cost of production. For example, product that are reliable generally have less material scrap, less product rework, fewer field failures, lower risk of recall, reduced warranty cost. 97. What is the importance of Market Performance versus Financial Performance. Today, just believing in the strategic importance of marketing isn’t enough. More than ever, marketing executives are being asked to quantify the impact that their organization’s marketing efforts have on the bottom line. Marketing Performance Management combines analytically derived tactical and strategic insights and delivers them via a single, comprehensive marketing framework so you can: •

Align activities and resources with strategies and goals.

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Link marketing performance to financial performance.

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Establish and maintain marketing team accountability.

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Integrate and optimize cross-functional spending.

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Understand and improve the efficiency and effectiveness of marketing activities.

Together in an integrated platform for enterprise marketing management so you can drive performance improvements throughout the entire marketing organization. Starting with top down analytically driven marketing scorecards and strategy maps, marketing executives can determine the right metrics to track as well as identify their most profitable customers. Furthermore, team members across the marketing department can use marketing planning tools to determine the optimal allocation of marketing resources, whether they relate to direct channel communication or indirect media advertising and promotions. 98. Explain the Financial Benefit of Customer Retention? Customer Retention should be a key focus area for most companies. Studies show that even in good times acquiring new customers can be 2 to 3 times more expensive than retaining old ones. In bad times like these with sales cycles lengthening as people give any potential expenditures more scrutiny, this difference in cost of sale is becoming even more significant. Therefore focusing on retaining current customers makes even more sense. 99. Why is it critical that Marketers have an understanding of the financial ramifications of their marketing activities? 100. What are the characteristics of a Manager who is good at monitoring? • “A willingness to ask” - Managers who ask questions of what is happening within the marketplace and gather more information on a constant basis • “A willingness to hear” - Managers are willing to listen to the answers (un-biased, open minded) • “A willingness to get out in the field” - Managers: > perform direct observation monitoring and; - 12 -

>maintain a personal involvement in the marketplace. • “Back of the envelope” measures - Managers regularly monitor key indicators of performance Other relevant characteristics • Have clear vision • Know what they are trying to achieve • Have an ability to work at the details of the market place • Analyse and seek insight behind the raw data being given to them from reporting functions • Develop creative ways of monitoring by looking for alternatives that give: >More in-depth realisation and; > information regarding the dynamics of the market 101. Outline methods of implementation of a marketing plan. 102. What differences are there between Implementation and Action Plans within a marketing plan? An Action Plan is a document used to guide the implementation of business process improvements. It contains task assignments, milestones, timelines, resource allocations, data collection methodology, and evaluation . Action Plans outline the Steps that must be taken, or activities that must be performed well, for a strategy to succeed. An action plan has three major elements (1) Specific tasks: what will be done and by whom. (2) Time horizon: when will it be done. (3) Resource allocation: what specific funds are available for specific activities. Implementation on the other hand, is the act of executing a research plan or Carrying out an action / strategy 103. What is the role of a marketing audit? “The marketing audit is designed to assess the competitive effectiveness of the marketing activities of the company”. Marketing audit is useful in initiating strategic evaluation. The marketing audit can be viewed as the beginning of the marketing planning cycle as it is assessing what is happening both internally and externally, against a perceived or nominated standard of performance which in turn will lead to decisions regarding action to be undertaken . 104. What is a marketing audit? A marketing audit is a detailed and systematic analysis of a company's problem areas in terms of market penetration. The analysis is done independently by the company itself. The analysis analyzes the market environment, the marketing strategies, and company objectives to better see where the company may be falling behind. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself. At what stage of the marketing planning process should a marketing audit be conducted? It is conducted not only at the beginning of the MP process, but also at a series of points during the implementation of the plan. 105. Explain “What is wrong with our marketing management?” 106. Why is it necessary for an organisation to alter its targeting strategy over time. 107. Suggest an approach that can be used by a regional family restaurant chain to determine the firm’s strengths over those of its competitors. 108. What justification is there for conducting a marketing audit in a business unit whose performance has been very good? 141. What are the options for holding a marketing audit and who should run it and what problems may occur? 109. What do you see as the benefits of a good marketing plan? - 13 -

Having a marketing plan will help you to focus on your target market and to find if there are any gaps in the market that will provide new opportunities for you. Your marketing plan will also provide you with something that enables you to measure how you are progressing. This can then highlight strategies that are working for you and those that are not. A good marketing plan will also benefit you in that it provides your outside financiers with confidence that you know your market and that you know how to achieve your objectives. A good marketing plan will deal with the matter of sourcing new leads as well as creating new networking opportunities for your business. The bottom line means your plan will define your business as well as your customers and your future plans. A good marketing plan is really a blueprint for the action that your business needs to take in order to achieve certain goals. It will identify the most cost effective ways of performing certain functions and should show the best way to present your business to your target audience. A good marketing plan will save you money by cutting out unnecessary expenses while at the same time presenting you with new marketing opportunities. A good plan will work for your business to make sure that what you do fits into your budget and that your marketing drive reaches your target audience. It will essentially keep all your activities and your budgets on track. If you don't have a good marketing plan it is possible that you are not taking full advantage of all the ways to reach your target audience. This will result in decreased sales.

1) Think long term (2) Stick with their marketing efforts long enough to reap results (3) Monitor their competition, but not overreact to it (4) Focus their efforts on achieving their specific goals and objectives (5) Target their primary customer vs. trying to market to everyone (6) Spend their budget more efficiently and effectively (7) Understand what marketing works and doesn't work for their business (8) Get smarter about marketing every year they are in business 110. Why is a road map for a family vacation similar to the process of developing a marketing plan? What are the similarities and differences? 111. Why should a business with a strong market orientation do a better job of creating a situation analysis than a business with a poor market orientation? 112. Why do high levels of customer dissatisfaction make attracting new customers more difficult? High levels of customer dissatisfaction will lead to negative word of mouth which would negatively influence potentially new customers. Besides, a Dissatisfied customers will also tell 10 other people about his/her own dissatisfaction. Leading to negative word-of-mouth. 113. Why does a business need both internal (financial) measures of performance and external (market-based) measures of performance? 114. Discuss the difference between the two types of performance metrics and how they are used. 115. Why are performance metrics important? - 14 -

Performance metrics are measures of an organization's activities and performance. Performance metrics are often linked in with corporate strategy[7] and are often derived in order to measure performance against a critical success factor. performance metrics should usually encourage improvement, effectiveness and appropriate levels of control. 116. What are some of the benefits of a broad, strategic market definition? 117. What are the advantages of computing a Market Share Index? 118. What is the purpose of spending a day in the life of a customer? In outstanding company, people of all level stay close to customer to understand their needs and wants. For example, Disney Theme Park at least a Manager tour the park by wearing Disney character costume or work in ticket counter or selling pop corns. However, a business with a passion for customer satisfaction will go further to understand customer needs, frustrations, and opportunities to create customer solutions that build higher levels of customer satisfaction. A day in the life of a customer is one way to further discover ways to build customer satisfaction. A day in the life of a customer is a process-focused, not productfocused, effort to understand how customers acquire, use, and replace products, and the sources of frustration that occur in these processes. The outputs of this effort are customer solutions designed to enhance customer satisfaction and improve customer retention 120.Why should customer needs be the driving force in segmenting a market? 121. What forces shape market attractiveness, and how should they be measured in order to develop an overall index of market attractiveness? 122. Why is competitor orientation an important element of a business’s market orientation? competitor orientation, as an element of market orientation, means that “a seller understands the short-term strengths and weaknesses and long-term capabilities and strategies of both the key current and potential competitors”. in order to develop a sustainable competitive advantage. Suppliers who are able to anticipate or predict competitor action do possess a valuable tool for developing competitive advantage. the competitor knowledge process creates information asymmetry between firms, which can be used to gain competitive advantage. In the case of new software ventures, which operate in markets with short product life cycles and changing specifications, information on what the competitors are doing and what they plan for the future is vital for business survival and development. 123. How does the amount of customer intelligence and competitor intelligence available to business influence pricing? 124. How does the level of product-market diversification affect sales growth and performance consistency? 125. When would a business pursue an unrelated new market entry strategy? 126. Why do share leaders have to work harder than share followers to protect share? 127. Why does the first step in the market planning process involve a situation analysis? A situation analysis is the foundation of the strategic planning process for your marketing plan. It includes an examination of both the internal factors (to identify strengths and weaknesses) and external factors (to identify opportunities and threats)

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This should enable marketers to have a comprehensive understanding of the environment they are operating in and how it has affected their marketing plan in order to improve the efficacy of future strategies. 128. What is the difference between a “market driven” approach compared to a “driving markets” approach? 129. Name the 3Cs that marketing organisations emphasise. 3Cs: Customers, Competitor and Corporation. The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategyOnly by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the competition in the functional areas that are critical to achieve success in the industry. Customers are the base of any strategy according to Ohmae. Therefore, the primary goal supposed to be the interest of the customer and not those of the shareholders for example. In the long run, a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically. Segmentation is helping to understand the customer. Competitor based strategies can be constructed by looking at possible sources of differentiation in functions such as: purchasing, design, engineering, sales and servicing. The following aspects show ways in order to achieve this differentiation: 130. How important is the business definition and scope stage of the marketing plan? The business definition and scope statement is the starting point for strategy analysis and development. Business definition and scope is a critical step in the entire strategic planning process, as the way the way the business is defined determines the nature of the markets that the organisation will compete in, the products and substitutes that service that market, or may service that market, the nature of the competition, and the capabilities the organisation will need to have in order to compete successfully. 131. Why do marketing managers undertake a market review? 132. There are many potential driving forces of a market. Name at least 3. 133. We have talked about Porter’s 5 forces model. The Porter's 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're looking to move into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. The Five Forces: The threat of substitute products:The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand). The threat of the entry of new competitors:Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). The intensity of competitive rivalry: For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. The bargaining power of customers: Also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes. The bargaining power of suppliers: - 16 -

Also described as market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources. 134. Why is Porter’s Value Chain model so important? • The Value Chain framework of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage. • the concept of the value chain was seen as a powerful tool that would enable strategists to diagnose and enhance competitive advantage. • a firm's co-ordination might be improved "by relating its organizational structure to the value chain, and the linkages within it and with suppliers or channels 135. What are the 3 main financial reports that marketing influences? There are three basic financial reports that all business owners need to understand and interpret in order to manage their businesses successfully—the balance sheet, the income/profit and loss (P&L) and the cash flow statement. 136. Why do marketing managers have to understand figures and in particular financial statements? Accurate and timely financial reports show the progress and current condition of the business. You can compare performance during one period of time (month, quarter or year) with another period, calculate trends and plan for the business's future. By analyzing your business's financial reports, you are able to determine how well your business is doing and what you may need to do to improve its financial viability. 137. Why is a cash flow statement important to a marketing manager? The Cash Flow Statement identifies when cash is expected to be received and when it must be spent to pay bills and debts. It shows how much cash will be needed to pay expenses and when it will be needed. It also allows the manager to identify where the necessary cash will come from. For example, will it be internally generated from sales and the collection of accounts receivable - or must it be borrowed? The net cash flow will help you see the difference between the inflows and outflows within a given period. A positive net cash flow over several periods highlights the capacity of a business to generate cash and a negative cash flow indicates the amount of additional cash, required to sustain the business. If there is a need for you to be funded by a bank, you need a cash flow statement for the financial background of your reliable state. 138. Why is it important to complete a perceptual map (positioning statement ) for your target market? Perceptual mapping is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition. It offers a unique ability to communicate the complex relationships between marketplace competitors and the criteria used by buyers in making purchase decisions and recommendations. In helping you develop a market positioning strategy for your product or service, perceptual maps or positioning maps as they are sometimes referred to, are often used to help the organisation identify a positioning strategy. 139. How do you determine how many performance metrics you should analyse and how would you decide which ones to use? 140. Reed talks about a list of 5 major factors to consider for determining market attractiveness. There are many different factors that contribute to market attractiveness. These include: (1) market factors such as growth rate and size of the market; (2) economic factors such as investment potential and industry saturation or rates of inflation - 17 -

affecting consumers' purchasing power; (3) technological factors such as availability of raw materials; (4) competitive factors including the types of rival business and the bargaining power of suppliers and (5) environmental factors such as the existing regulatory climate and the degree of social acceptance for a product within a particular market. 141. What do we mean when we talk about Marketing strategies being consistent? Why is this important? 139. What is an action plan (implementation). What are the parts of an action plan and why is it important?

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