Flashcards on Internal Assessment in Strategic Management

Internal Assessment in Strategic Management: A Complete Guide

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What is test marketing and why is it important in product/service planning?

Test marketing is testing alternative marketing plans and forecasting sales for new products; it helps reveal weak products and ineffective marketing

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Marketing

21 cards

Card 1

Question: What is test marketing and why is it important in product/service planning?

Answer: Test marketing is testing alternative marketing plans and forecasting sales for new products; it helps reveal weak products and ineffective marketing

Card 2

Question: Name three things distribution includes.

Answer: Warehousing, distribution channels, and retail site locations (also distribution coverage, sales territories, inventory levels/location, transportatio

Card 3

Question: Why do most producers use intermediaries instead of selling directly to consumers?

Answer: Intermediaries (wholesalers, retailers, brokers, agents, vendors, distributors) handle distribution functions, and manufacturers often gain greater re

Card 4

Question: What are the five major stakeholders that affect pricing decisions?

Answer: Consumers, governments, suppliers, distributors, and competitors.

Card 5

Question: Give two examples of government constraints on pricing.

Answer: Constraints include prohibitions or regulations on price fixing, price discrimination, minimum prices, unit pricing, price advertising, and price cont

Card 6

Question: List two practices competitors must avoid to comply with antitrust concerns.

Answer: They must avoid coordinating discounts/credit terms/conditions of sale and discussing prices, markups, or costs at trade association meetings (also av

Card 7

Question: Why should strategists consider price from both short-run and long-run perspectives?

Answer: Because competitors can copy price changes easily, so short-term gains may be eroded and long-term effects differ.

Card 8

Question: What is marketing research?

Answer: The systematic gathering, recording, and analyzing of data about problems related to marketing goods and services.

Card 9

Question: How does strong marketing research capability benefit an organization?

Answer: It uncovers critical strengths and weaknesses, supports all major business functions, and is a definite strength for pursuing generic strategies.

Card 10

Question: What are the three steps in conducting a cost/benefit analysis?

Answer: 1) Compute total costs of a decision, 2) Estimate total benefits, 3) Compare total costs with total benefits.