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MKT101-Final – assignment

Principles of Marketing (HELP University)

StuDocu is not sponsored or endorsed by any college or university

MKT101-Final – assignment

Principles of Marketing (HELP University)

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1. Customer-Driven Marketing Strategy

Market Segmentation: Dividing a market into distinct groups of buyers who have

different needs, characteristics or behaviors and who might require separate marketing

strategies or mixes.

Market Targeting: Most marketers have moved away from mass marketing, towards

this technique. Evaluation each market segment’s attractiveness and selecting one or

more segments to serve.

Differentiation: Actually differentiating the market offering to create superior customer

value.

Positioning: Arranging for a market offering to occupy a clear, distinctive, and desirable

place relative to competing products in the minds of target consumers.

2. Explain customer value-driven marketing strategy?(What are the 5 different

marketing management orientations? Which orientation do you believe your

college follows when marketing its undergraduate program?)

There are five alternative concepts under which organizations design and carry out their

marketing strategies: the production, product, selling, marketing, and societal

marketing concepts.

Firstly, the production concept is the idea that consumers will favor products that are

highly affordable and available and that organization should therefore focus on

improving production and distribution efficiency. For example, computer maker Lenovo

dominates the highly competitive, price-sensitive Chinese PC market through low labor

costs, high production efficiency, and mass distribution.

Secondly, the product concepts is the idea that consumers will favor products that

offer the most quality, performance, and features and that the organization should

therefore devote its energy to making continuous product improvements. For example,

some manufactures believe that if they can ―build a better mousetrap, the world will

beat a path to their doors‖ buyer and may be looking for better solution to a mouse

problem but not necessarily for a better mousetrap

Thirdly, the selling concept is the idea that consumers will not buy enough of the firm’s

products unless it undertakes a large-scale selling and promotion effort. The selling

concept is typically practice with unsought goods – those that buyers do not normally

think of buying, such as insurance and blood donations.

Fourthly, the marketing concept holds that achieving organization goals depend on

knowing the needs and wants of target markets and delivering the desired satisfactions

better than competitors do. For example, even 20 years ago, how many customers

would have thought to ask for now-commonplace products such as notebook

computers, cell phone, digital camera, etc?

Finally, the societal marketing concept is the principle of enlightened marketing that

holds that a company should make good marketing decisions by considering

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consumers’ wants, the company’s requirement, consumer’s long-run interests, and

society’s long-run interests.

My college follows the product concept because students can have the good

education environment with many knowledge teachers. And it also upgrades new

teaching methods and recruits new young teacher

3. Steps strategic Planning (Explain company-wide strategic planning and its

four steps.)

Strategic Planning: the process of developing and maintaining a strategic fit between

the organization’s goals and capabilities, and its changing marketing opportunities.

Steps in Strategic Planning (Corporate Level):

1.) Defining the company mission.

2.) Setting company objectives and goals

3.) Designing the business portfolio

4.) Planning marketing and other functional strategies.

Strategic planning sets the stage for the rest of the company’s planning. Marketing

contributes to strategic planning, and the overall plan defines marketing’s role in the

company Strategic planning involves developing a strategy for long-run survival and

growth. It consists of four steps: (1) defining the company’s mission, (2) setting

objectives and goals, (3) designing the business portfolio, and (4) developing functional

plans. The company‘s mission should be market oriented, realistic, specific, motivating,

and consistent with the market environment. The mission is then transformed into

detailed supporting goals and objectives, which in turn guide decisions about the

business portfolio. Then each business and product unit must develop detailed

marketing plans in line with the company-wide plan.

4. Explain BCG growth-share matrix

What is BCG matrix: Is a matrix with a marketing planning tool which helps

managers to plan for a balances product portfolio. It looks at two dimensions, market

share and market growth, in order to assess new and existing products in terms of

their market potential.

How it works: A business would place each individual product in its product portfolio

(or product range) onto one of the quadrants of the Boston matrix based on the

product’s relative market share and the product’s market growth in the industry.

There are four possible results from using the Boston matrix.

Dogs – Dogs have low market share and a low growth rate and thus neither

generate nor consume a large amount of cash. However, dogs are cash traps

because of the money tied up in a business that has little potential. Such

businesses are candidates for divestiture.

Question marks – Question marks are growing rapidly and thus consume

large amounts of cash, but because they have low market shares they do not

generate much cash. The result is a large net cash comsumption. A question

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mark (also known as a “problem child”)

has the potential to gain market share

and become a star, and eventually a cash

cow when the market growth slows. If the

question mark does not succeed in

becoming the market leader, then after

perhaps years of cash consumption it will

degenerate into a dog when the market

growth declines. Question marks must be

analyzed carefully in order to determine

whether they are worth the investment

required to grow market share.

Stars – Stars generate large amounts of cash because of their strong relative market

share, but also consume large amounts of cash because of their high growth rate;

therefore the cash in each direction approximately nets out. If a star can maintain its

large market share, it will become a cash cow when the market growth rate declines.

The portfolio of a diversified company always should have stars that will become the

next cash cows and ensure future cash generation.

Cash cows – As leaders in a mature market, cash cows exhibit a return on assets that is

greater than the market growth rate, and thus generate more cash than they consume.

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