Concept and approaches MCQ Quiz in मल्याळम - Objective Question with Answer for Concept and approaches - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

Porter's Five Forces Model:

• This model was created by Harvard Business School Professor - Michael Porter, to analyze industry attractiveness and likely profitability.
• It is a powerful tool used for understanding the competitiveness of the business environment, and for identifying the strategy's potential profitability.
• Porter identified five forces that make up the competitive environment and can even erode a company's profitability; they are as follows:
  1. Competitive rivalry
  2. Supplier power
  3. The threat of new entrants
  4. Buyer power
  5. The threat of substitute products

1. Competitive Rivalry:
   • This focuses on the number and strength of competitors.
   • When there is intense rivalry, companies can attract customers with aggressive price cuts and high-impact marketing campaigns.
   • Competitive rivalry can become a threat if suppliers and buyers of a company decide to go elsewhere if they are feeling that they can get a good deal from other companies.
2. Supplier Power:
   • It is determined by knowing how easy it is for a supplier to increase its price.
   • When there are more supplier options for a company to choose from, the easier it will be to choose a cheap alternative.
   • On the contrary, the fewer suppliers there are, the stronger will be their position and ability to charge a company more.
3. The threat of new entrants:
   • A company's position can be affected by other's ability to enter the market.
   • If it less effort and little money to enter the market and compete effectively then rivals can enter the market easily and weaken a company's position.
   • On the contrary, if there are strong and durable barriers to enter the market, it can be favorable for an existing company and it can take advantage of it.
4. Buyer Power:
   • Buyer power can be determined by estimating that up to how much extent buyers can drive prices of a product.
   • It depends upon the number of existing customers; when a company deals with only savvy customers, the buyers have more power.
   • On the contrary, if there are many customers in the market then the company possesses more power. 
5. The threat of substitute products:
   • It refers to the likelihood of customers finding a different way to doing what a company does.
   • A product substitution that is easy and cheap to make can weaken the position of a company and vice-versa.

Therefore, the five forces model of Michael Porter determines the attractiveness in long run does not include an opportunity to the alliance.

 The correct answer is Customer.

• AIDA is an acronym developed in 1898 by advertising pioneer E. St. Elmo Lewis.
• It describes the steps that a prospective customer goes through before deciding to buy a product or service.
• The acronym stands for Attention, Interest, Desire, and Action.
• The AIDA model is widely used in marketing and advertising to describe the steps or stages that occur from the very first moment a consumer is aware of a product or brand to the actual moment the purchase is made.
   

1. Attention: The first stage of the buying process is making the consumer aware of the product.
2. ​Interest: To bump prospects up to the second stage, you must develop the potential buyer's interest in the product or service.
3. ​Desire: In the third stage of AIDA, prospects realize that the product or service is a good fit and will help them in some way.​
4. Action: The fourth and last stage of AIDA occurs when the prospect decides to take the action necessary to become a customer.​

Mystery Shopping is a process in which a person visits a retail store, restaurant, bank branch, or any such location with the objective of measuring the quality of customer experience.

• Mystery Shopping is a fascinating method of evaluating customer experience where individuals are hired to represent actual customers that shop at a store.
• Feedback is then taken through these ‘mystery shoppers’ and the company uses it to evaluate how close is the actual experience of the customers to the desired one.
• It prompts the company to think about the areas it is lacking and act upon them.
• It is a form of primary market research that uses quantitative techniques as the mystery shopper usually has to fill out a form rating his experience.
• Also, this method is used for accessing services only and is not applicable to products.
• Mystery shopping has now grown into a customer service-oriented program.

Balanced Scorecard:

• A Balanced Scorecard is a strategic management performance metric that helps companies identify and improve their internal operations to help their external outcomes.
• The concept was first developed by two management gurus, one of them is a famous professor from Harvard Business School, Dr. Robert Kaplan; and business executive and theorist Dr. David Norton.
• The Harvard Business Review first published about it in the 1992 article, "The Business Scorecard--Measures That Drive Performance".
• Both Kaplan and Norton worked on a year-long project involving 12 top-performing companies and their study took previous performance measures and adapted them to include non-financial information.
• A business scorecard is meant to measure the intellectual capital of a company, such as skills, training, knowledge, and any other proprietary information that can give it a competitive advantage in the market.
• This model reinforces good behavior in an organization by isolating four separate areas that need to be analyzed.

These four areas/characteristics are as follows:

1. Learning & Growth:
   • Learning and growth are analyzed through the investigation of training and knowledge resources.
   • This area handles how well information is captured and how effectively the staff is able to use that information to convert it into a competitive advantage.
2. Internal Processes / Business Processes:
   • Internal business processes are evaluated by investigating how well products are manufactured.
   • Operational management is analyzed to track any gaps, delays, bottlenecks, shortages, or waste.
3. ​Customer Perspective:
   • Customer perspectives ​​are collected to gauge customer satisfaction with the quality, price, and availability of products or services.
   • Customers give feedback about their satisfaction with current products.
4. ​Financial Data:
   • ​​Financial Data such as sales, expenditures, and income are used to understand financial performance.
   • These financial metrics can include dollar amounts, financial ratios, budget variances, or income targets.

Therefore, a Balanced Scorecard is a strategic management performance metric that helps companies identify and improve their internal operations to help their external outcomes.

Marketing Funnel:

• A marketing funnel is a technique of breaking down the customer journey from the "awareness" stage i.e. when the people first learn about a business to the "purchase/action" stage i.e. when people are ready to buy the product or service.
• The funnel often includes post-purchase follow-ups which increase retention as well as cross and up-sales.
• In this process, the first step is getting traffic to the site which can be done by SEO-friendly content, publishing white papers, and getting backlinks.
• As leads progress through the funnel, outreach methods will grow more and more personalized until the sales take place.

• As can be seen from the above diagram that each color-coded section of the funnel corresponds to a stage in the buying process.
• The largest segment at the top represents "awareness", the point where people are aware of the product and are beginning their information search.
• The second stage represents "interests" where the people are suspects and think a business can solve a problem and want to learn more about it.
• The next stage is "desire" where the potential prospects have done their research and have the desire to convert.
• The final stage of the funnel represents "action" i.e. the prospects take action to buy the product and become a final consumer.   

Therefore, in a typical Funnel, people who are aware of the product would be the largest segments.

The correct answer is Behavioural 

Consumer behavior is a study of how individuals make decisions to spend their available resources (time, money, and effort) or consumption-related items.It is necessary to make pricing policies. Segmenting consumers based on their buying capacity will help marketers determine eligible consumers and achieve better results

Key Points

The predictability of consumer choice behavior by various segmentation criteria is as follows:

• Psychological:
  • It is a type of targeting that allows businesses and marketers to divide customers based on psychological traits that may influence their buying behaviors
  • the most significant one is that it can’t tell you everything you need to know about your audience because you have limited information.
  • Unfortunately, we may not get enough responses to tell you about each segment.
  • In addition, psychographic segmentation can be easily misunderstood because it doesn’t use quantitative data, so marketers may accidentally make incorrect assumptions about customers. 
• Demographic :
  • It s a precise form of audience identification based on data points like age, gender, marital status, family size, income, education, race, occupation, nationality, and/or religion,
  • This helps in organizing your customer relationships, enhancing user experiences, and improving conversions.
• Geodemographic :
  • Geodemographics are consumer segmentation models created by aggregating demographic attributes within a specific geographic area.
  • These segments are not as easily defined with traditional demographic data, which provides raw census counts and requires further analysis for lifestyle insight.
  • The reaction from market segments to marketing plans or strategies is typically very predictable.
• Behavioural:
  • It is the process of grouping customers according to their behavior when making purchasing decisions.
  • Behavioral segmentation drives smarter decisions about how to best allocate time, budget, and resources.
  • Marketers can identify and map the most profitable segments based on the consideration o f these variables. 

Marketing Mix:

• A marketing mix is defined as a set of actions or tactics that a company uses to promote its product or brand in the market.
• It includes multiple areas of focus as a part of a comprehensive marketing plan.
• Marketing mix describes a blending of four strategic elements (4Ps) to satisfy specific target markets: Product, Price, Place, Promotion.
• The classification of 4Ps for developing an effective marketing strategy was first introduced in the 1960s by E. Jerome McCarthy.
   

• However, nowadays, the marketing mix also includes three other vital mix elements of Ps like People, Process, and Physical Evidence.
• The overall 7 Ps of marketing is Product, Price, Place Promotion, People, Process, and Physical Evidence.
• Product elements include product line, size, and appearance, quality, design, features, brand name, trademark, packaging, etc.
• Price elements include cost, competition, demand, nature of customers, etc.
• Promotion elements include advertising, sales promotion, direct selling, public relations, publicity, etc.
• Place elements include distribution channels, dealer relations, area coverage, channel communication, etc.
• People elements include professional service providers interacting with customers.
• The process includes methods and a sequence of actions with which an organization delivers the service elements.
• Physical evidence includes external surroundings, layout, and structure of the building, an internal environment like ambiance / decor, lighting, furniture, etc. 
• All the elements of the marketing mix can influence each other.
• They have the capacity to make up a business plan for a company and when handled right, can give it great success; but when handled wrong, the business could take years to recover.

Therefore, advertising, sales promotion, direct selling are all the elements of the Promotion of the marketing mix. 

The G. E. Business Model as known as the McKinsey Matrix is defined as, "The GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units".  

The G .E. Business Model:

• This model helps corporations make investment and disinvestment decisions related to their business units.
• Unlike four-grid BCG Matrix, this model has nine-grids.
• The G. E. Business Model uses Market Attractiveness and Business Position/Strength as a parameter for its measurements.
• The main importance of the GE Model as a strategy tool is that it tries to answer the question of where scarce resources should be invested.
• When the market attractiveness is medium and the business strength is strong or when the market attractiveness is high and the business strength is medium or when both market attractiveness and business strength are high and strong then investment decisions are taken.
• When the market attractiveness is low and the business strength is also low then disinvestment decisions are taken.
• The GE Matrix fails to consider interdependencies between business units under one corporation and its competitors.
• Another disadvantage of the GE Matrix is that preparing it is a difficult exercise that will demand the expertise of a consultant.

Therefore, the G. E. Business Model is explained on Market Attractiveness and Business Position parameters.

BCG Matrix / The Market Growth-Share Matrix:

• BCG matrix framework was created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential.
• It is a business tool that uses relative market share and industry growth rate factors to evaluate the potential of the business brand portfolio and suggest further investment strategies.
• BCG matrix is a strategic marketing planning tool that classifies a business portfolio into four categories based on industry attractiveness i.e. market growth rate and competitive position i.e. relative market share.
• These two dimensions help in determining the profitability of the business portfolio in terms of cash needed to support that unit and cash generated from it.
• The basic purpose of the analysis is to understand that in which brands the firm must invest and in which brand it should divest.

• In this four-quadrant template, the market growth rate is shown on the vertical side and relative market share is shown on the horizontal side.

The four quadrants designated are explained below:

1. Stars:
   • The business units or products that have the best market share and are able to generate high cash are considered stars.
   • Because of their high growth rate, stars consume large amounts of cash.
   • When the high market growth rate falls down, stars can become cash cows if they sustain their success until that time.
   • Monopolies and first to market products are considered stars.
2.  Question Marks:
   • These products or business units have a high growth rate but low market share.
   • They consume a lot of cash but have very low returns.
   • Since these business units can grow rapidly, they have the potential to turn into stars after achieving high market share.
   • Companies invest in question marks if the product can achieve a high market share, or sell if it does not.
3. Dogs:
   • These units or products have both a low market share and a low market growth rate.
   • They frequently break even neither earning nor consuming a great deal of cash.
   • Dogs are considered cash traps as businesses have money tied up in them, even though they are bringing back nothing in return.
   • These business units are a prime cause of divestiture.
4. Cash Cows:
   • These business units or products have a high market share but low growth rate capacity.
   • Cash cow is a market leader that generates more cash than it consumes.
   • Companies are advised to invest in cash cows to maintain the level of productivity or to "milk" the gains passively.

Therefore, the market share/market growth (BCG) matrix is a strategic marketing planning tool.

When a large heterogeneous market is divided into small homogenous sub-markets than it is known as Market Segmentation.

 Mirco Marketing:

• When every specific customer is targeted within a niche market based on a commitment to a product class or readiness to purchase a particular brand it is known as Micro Marketing.
• The marketing efforts are made here to meet the requirements of a small section of people in the market who have similar tastes in products. 

1) Nano Marketing:

• It aims at targeting small markets with an objective to achieve the maximum profits from that market.
• Razor Sharp Marketing technique is used to achieve goals.   

2) Single Marketing: 

• When a business focuses on just one segment of the market to promote its goods then it is known as a Single Marketing strategy.
• Generally, the segments can be defined here geographically or demographically.

3) Niche Marketing:

• When a business or company promotes and sells a product or service to a specialized segment of the market then it is called Niche Marketing.
• It is an advertising strategy that focuses on unique target markets and not necessarily small markets.

Therefore, when a company treats every single customer as a separate segment, this is called Micro Marketing.