What is the company’s mission?
A mission statement is a concise explanation of the organization’s reason for existence. It describes the organization’s purpose and its overall intention,
What is a strategy?
It is a long-term vision of the means that will be used to achieve a final objective.
What is a tactic?
It is an element used within the strategy to achieve the final objective.
What is a competitive strategy?
it is a business strategy defined by one’s own company in relation to competitors.
What is a developmental strategy?
It is a business strategy defined by how a company plans to grow
What is a leadership strategy?
It is a company that is given the market and that is recognized as a leader by competitors.
What is a challenger strategy?
It is the company that is considered the main rival of the leader; it seeks a dominant position.
What is a follower strategy?
It is a competitor with a small market share that adapts its action to its competitors.
What is a specialist strategy?
It is a company that focuses on a distinct market segment.
How should leader companies behave?
- Defend or grow their market share.
- Try to grow the overall market.
How should challenger companies behave?
- It takes advantage of the leader’s weaknesses.
- It battles the leader using the leader’s own method.
How should follower companies behave?
- They retain market share.
- They respond to leader actions to remain competitive.
How should specialist companies behave?
They serve a niche need that is not being met by others in the industry.
Give ways to penetrate a market.
- By increasing current customers’ rate of use.
- By attracting competitor customers.
- Attract non-users.
What are the ways to increase current customers’ rate of use?
- By increasing the number of units purchased at a time.
- By accelerating the product obsolescence rate.
- By advertising for other uses.
- With monetary premiums for increased use.
What are the ways to attract competitors’ customers?
- By better defining a brand differentiation.
- By enhancing communication efforts.
What are the ways to attract non-users?
- By encouraging users to try products.
- By pushing prices up or down.
- By advertising new uses.
What are the 2 ways to develop a new market?
- By opening new geographic markets.
- By attracting other market segments.
What are the ways to open new geographic markets?
- With regional expansion.
- With national expansion.
- With international expansion.
What are the ways to attract other market segments?
- By penetrating other distribution channels.
- By advertising in other media.
- By developing attractive product versions for other sectors.
What is a brand extension?
It is when a company uses one of its established brand names on a new product or new product category.
What are line extensions? Give example.
It is to develop new products like what you already make like deodorant scents.
What are complementary extensions? Give example.
It is to develop new products that complement what you already make like BeautyBlender Foundation.
What are brand authority extensions? Give example.
It is to develop products within your expertise & authority like Dayson AirWrap.
