BUAD 100 Exam 1 with Accurate
Solutions
stakeholder - ANS-party that has an interest in a company and can either affect of be
affected by the business
primary stakeholder - ANS-investors, employees, customers
additional stakeholders - ANS-community, government, trade association
internal stakeholders - ANS-people whose interest in the company comes through a
direct relationship
ex: through employment, ownership or investment
investors
external stakeholders - ANS-people who don't directly work with the company but are
affected in some way by the actions and outcomes of said business
ex: suppliers, creditors and public groups
- harder to identify because they don't have a direct relationship with the company
- affected by the operations of the business
- direct effect on a company but are not directly tied to it
problems with stakeholders - ANS-their various self-interests may not be aligned
they may be in direct conflict
shareholder value - ANS-value delivered to shareholders because of management's
ability to grow sales
competition - ANS-perfect competition (pure competition) is a market structure with the
5 criteria
1. all firms sell an identical product
2. all firms are price takers they can't control the market price of their product
3. all firms have a relatively small market share
4. buyers have complete information about the product being sold and the prices
charged by each firm
5. the industry is characterized by freedom of entry and exit
benchmark - ANS-standard against which the performance of a security, mutual fund or
investment manager can be measured
, promotion - ANS-objectives: awareness, persuasion, reminder, educate
appropriate message, appropriate vehicle
place - ANS-distribution strategy
- distribution channel: how does the consumer get the product
- integrated or 3rd party intermediates
- exclusive, selective, or intensive coverage
STP - ANS-market segmentation, targeting, positioning, decide on the optimal
marketing mix
targeting - ANS-evaluate potential and commercial attractiveness of each segments
- select on or more segments
product positioning - ANS-develop detailed product positioning for selected segments
- develop a marketing mix of each selected segments
- positioning maps
- map out competitors onto matrix
what to look for: make sure the market is large enough to matter and customers can
easily be contacted
segmentation - ANS-identify niches with specific needs, mature markets to find new
customers, deliver more focused and effective marketing messages
- demographics, psychographics, lifestyle, belief and values, life stages, geography,
behavior, benefit
psychographics - ANS-refers to personality and emotions based on behavior linked to
purchase choices, attitudes, lifestyle, hobbies, personality and leadership traits
differentiation and positioning strategy - ANS-identifying a set of possible value
differences and competitive advantages on which to build a position
- choosing the right competitive advantages
- selecting an overall positioning strategy
point of difference - ANS-how am i different?
frame of reference - ANS-who am i up against?
service - ANS-any activity or benefit that one party can offer to another that is
essentially intangible and doesn't result in the ownership of anything
ex: hair styling, tax preparation, air travel and banking
intangibility - ANS-services can not be seen, tasted, felt, heard or smelt before
purchased
inseperability - ANS-services cannot be separated from their providers
Solutions
stakeholder - ANS-party that has an interest in a company and can either affect of be
affected by the business
primary stakeholder - ANS-investors, employees, customers
additional stakeholders - ANS-community, government, trade association
internal stakeholders - ANS-people whose interest in the company comes through a
direct relationship
ex: through employment, ownership or investment
investors
external stakeholders - ANS-people who don't directly work with the company but are
affected in some way by the actions and outcomes of said business
ex: suppliers, creditors and public groups
- harder to identify because they don't have a direct relationship with the company
- affected by the operations of the business
- direct effect on a company but are not directly tied to it
problems with stakeholders - ANS-their various self-interests may not be aligned
they may be in direct conflict
shareholder value - ANS-value delivered to shareholders because of management's
ability to grow sales
competition - ANS-perfect competition (pure competition) is a market structure with the
5 criteria
1. all firms sell an identical product
2. all firms are price takers they can't control the market price of their product
3. all firms have a relatively small market share
4. buyers have complete information about the product being sold and the prices
charged by each firm
5. the industry is characterized by freedom of entry and exit
benchmark - ANS-standard against which the performance of a security, mutual fund or
investment manager can be measured
, promotion - ANS-objectives: awareness, persuasion, reminder, educate
appropriate message, appropriate vehicle
place - ANS-distribution strategy
- distribution channel: how does the consumer get the product
- integrated or 3rd party intermediates
- exclusive, selective, or intensive coverage
STP - ANS-market segmentation, targeting, positioning, decide on the optimal
marketing mix
targeting - ANS-evaluate potential and commercial attractiveness of each segments
- select on or more segments
product positioning - ANS-develop detailed product positioning for selected segments
- develop a marketing mix of each selected segments
- positioning maps
- map out competitors onto matrix
what to look for: make sure the market is large enough to matter and customers can
easily be contacted
segmentation - ANS-identify niches with specific needs, mature markets to find new
customers, deliver more focused and effective marketing messages
- demographics, psychographics, lifestyle, belief and values, life stages, geography,
behavior, benefit
psychographics - ANS-refers to personality and emotions based on behavior linked to
purchase choices, attitudes, lifestyle, hobbies, personality and leadership traits
differentiation and positioning strategy - ANS-identifying a set of possible value
differences and competitive advantages on which to build a position
- choosing the right competitive advantages
- selecting an overall positioning strategy
point of difference - ANS-how am i different?
frame of reference - ANS-who am i up against?
service - ANS-any activity or benefit that one party can offer to another that is
essentially intangible and doesn't result in the ownership of anything
ex: hair styling, tax preparation, air travel and banking
intangibility - ANS-services can not be seen, tasted, felt, heard or smelt before
purchased
inseperability - ANS-services cannot be separated from their providers
