When SA Airlines positions itself as a leader in technology, innovation, quality, and _____ service it ensures that competitors will have difficulty matching its standards, helping them to profitable even as other airlines struggle
...
_______, which includes services, constitutes the first of the for PsA) ProductB) PromotionC) PlaceD) Pricing
Product
How do you develop customer value through customer excellence
loyalty programs and superior service
How do you develop customer value through operational excellence
excellence supply chain managementstrong superior relations andhuman resource management
How do you develop customer value through product excellence
effective branding and postioning
How do you develop customer value through locational excellence
high density of stores and closer proximity to customers
What are some methods for assessing performance?
First method: compare a firm's performance over time or to competing firms using common financial metricsSecond method: View the firm's products or services as a portfolio
True or False:An attempt to maximize one metric never effects the other metrics for assessing performance
FALSE An attempt to maximize one metric MAY LOWER the other metricsfor example: a manager might increase sales by lowering prices, BUT the merchandise sold (gross margin) would yield a lower profit
Therefore, since maximizing one metric may lower another, Managers must understand ___
Therefore, since maximizing one metric may lower another, Managers must understand how their actions affect multiple performance metrics
True or False:It is wise to use only one metric for assessing performance
FALSEIt's usually unwise to use only one metric because it rarely tells the whole story
Why isn't one performance metric not enough to tell the whole story?
It is hard to find a single metric to evaluate performance because many factors contribute to a firm's overall performance
The metrics used to evaluate a firm vary depending on what two things?
The metrics used to evaluate a firm vary depending on1) the level of the organization at which the decision is made2) the resources the manager controls
What are the purpose of performance evaluations?
Performance evaluations are used to pinpoint problem areasIf the performance is above or below planned levels, reasons for this rise or dip ("the problem") must be examined and pinpointed so that they may be fixed.
sales are a _____ measure of a firm's ____
Sales are a global measure of a firm's activity level
True or False:A firm only cares in assessing the absolute level of sales
FALSEA firm may wish to assess both the absolute level of sales and profits and the relative level of sales and profits
A Metric is a measuring system that ___________s what 3 things
A Metric is a measuring system that quantifies a trend, dynamic, or characteristic
(For example*) A relative metric of sales and profits is...
A relative metric of sales and profit is its increase or decrease over the prior year
In portfolio analysis, managers evaluate
In portfolio analysis, managers evaluate the firm's various products and businesses (its portfolio) and allocates resources according to which products are expected to be the most profitable in the future
Some commonly used metrics to assess financial performance include (3)
1) revenue2) sales3) profitsare & 2 the same?
Portfolio analysis is typically preformed at the _____ level
Portfolio analysis is typically performed at the Strategic Business Unit (SBU) or product line level
What's an Strategic Business Unit (SBU)?
An SBU is a division of the firm that can be managed or operated somewhat independently from other divisions and may have different missions or objectives
What is a product line?
a group of associated items, such as those consumers use together or think of as part of a group of similar products
Market Share is
Market share is the % of a market accounted for by a specific entity
Market Share is used to...
Market share is used to establish the product's strength in a particular market
Market share is usually discussed in
Market share is usually discussed in units, revenue, or sales
Relative market share
is used to provide managers with a products relative strength compared with that of the largest firm in the industry
Market growth rate
the annual rate of growth of the specific market in which the product competes(thus, measures how attractive a particular market is)
Boston Consulting Group Matrix
is a popular portfolio analysis method
What are the x and y axis of the BCG Matric
X-axis: Relative Market ShareY-axis: Market growth rate
Stars (_____ _____ quadrant)
...
What are the names of each quadrant?
Stars Question MarksCash cows Dogs
Market Development Strategy
employs the existing marketing offering to reach new market segments
___________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
Market poisitoning involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
the product development strategy incorporates a ______ product or service to a firm's ____ market
the product development strategy incorporates a new product or service to a firm's current market
A market _______ growth strategy focuses on increasing sales of the firm's current products to its current target markets
A market penetration growth strategy focuses on increasing sales of the firm's current products to its current target markets