Marketing Concept (Group2)

8/14/2019 Marketing Concept (Group2)

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Marketing Concepts



Brain Storming

• Brainstorming is a group creativity technique

designed to generate a large number of ideas

for the solution to a problem.

• Four basic rules in brainstorming.

- Focus on quantity

- No criticism- Unusual ideas are welcome

- Combine and improve ideas



Steps in Brain Storming

• Defining Problem

• Pass guideline to the team

• Encourage Ideas

• Record each Idea

• Analyze (pros and cons of ideas)

• Priorities/Rank Ideas

• Select Best Idea or Combine Ideas



Benchmarking

• Benchmarking is the process of comparing thecost, time or quality of what one organization

does against what another organization does.

• Types of Benchmarking

- Process benchmarking

- Financial benchmarking

- Performance benchmarking- Product benchmarking

- Strategic benchmarking

- Functional benchmarking



Methodology of Benchmarking

• Identify your problem areas.

• Identify other industries that have similar processes.

• Identify organizations that are leaders in theseareas.

• Survey companies for measures and practices.

• Visit the "best practice" companies to identifyleading edge practices.

• Implement new and improved businesspractices.



Barriers to Entry and Exit

• A barrier to Entry is something that blocks or

impedes the ability of a company (competitor) to

enter an industry.

• A barrier to Exit is something that blocks or

impedes the ability of a company (competitor) to

leave an industry.



• Typical Barriers to Entry

- Economies of size

- Capital intensive- Intellectual property

- High switching costs

- Established brand identity

- Permitting requirements

- Government standards

• Typical Barriers to Exit

- Investment in specialist equipment

- Specialized skills

- High fixed costs



Activity Based Costing

• Activity Based Costing (ABC) is an accountingtechnique that allows an organization to determine theactual cost associated with each product and serviceproduced by the organization.

• Steps

- Identify the Resources (expenditures) of an organization.

- Determine Activities (work performed) that are supportedby Resources.

- Define Cost Objects (products, services, customers).- Develop Resource Drivers to link Resources to Activities.

- Develop Cost Drivers to link Activities to Cost Objects.



Balance Scorecard

• The Balanced Scorecard (BSC) is a performancemanagement tool for measuring whether thesmaller-scale operational activities of a companyare aligned with its larger-scale objectives interms of vision and strategy.

• Implementing Balanced Scorecards includes four processes:

- Translating the vision into operational goals,

- Communicating the vision and link it to individualperformance,

- Business planning,

- Feedback and learning, and adjusting the strategyaccordingly.



Use of Balance Scorecard

• Drive strategy execution;

• Clarify strategy and make strategy operational;

• Identify and align strategic initiatives;• Link budget with strategy;

• Align the organization with strategy;

• Conduct periodic strategic performance reviewsto learn about and improve strategy.



Thank You

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Marketing Concept (Group2)