NAME: RONIEL JOSEPH PURCIA MODULE 2 TOPIC 2

COURSE & SEC: BSCE – 2A BES6

PROFESSOR: ENGR. MARCIANO B. APILADO SEPTEMBER 26, 2021
QUESTIONS TO ANSWER FOR MODULE II TOPIC 2- MARKETING STRATEGY
1. Explain the aims of marketing strategy in a business operation with example.
The aim of business marketing is to provide a path to success. The goal of a company's
marketing campaign should be to educate customers about the products they're selling and how
they will be satisfied with the product. The success of a marketing campaign is measured by an
increase in sales revenues. Following the trend and adapting to what customers demand is an
example of this, as is being flexible for changes that may occur during the marketing period.
2. What is the importance of Vision, Mission, Values and Goals in a business firm?
The strategy of a company is guided by its mission and vision statements. Both provide
the purpose and goals to it, which are crucial components. It explains what the company does
and what its primary objective is. The mission statement, which supports the vision, provides
purpose and direction to employees, customers, vendors, and other stakeholders. A company's
values explain what it stands for and how it will behave. Without these crucial parts, the
organization would be in disorder.
3. SWOT analysis is one of the management tools in identifying some operational problems
during the course of business operation. Explain how to conduct a SWOT analysis.
To have a concrete structure to your analysis you have to use SWOT, to start by asking a
series of questions. Take, for example, our first aspect, Strengths. You may start by
asking some of the following questions to figure out what your company's strengths are:
➢ What are your consumers' favorite aspects of your business or product(s)?
➢ What distinguishes your business from others in your industry?
➢ What advantages do you have over your competition in terms of resources?
To determine the weaknesses of your business you can also use the same principle you
use in identifying your strengths. Like:
➢ Are there things that your business needs to be competitive?
➢ What business processes need improvement?
➢ Are there tangible assets that your company needs, such as money or equipment?
After knowing your company’s strength and weaknesses, you should also know the
opportunities in it.
➢ Is your market growing and are there trends that will encourage people to buy more
of what you are selling?
➢ Are there upcoming events that your company may be able to take advantage of
to grow the business?
➢ Are there upcoming changes to regulations that might impact your company
positively?
Threats are external factors that you have no control over. You may want to consider
putting in place contingency plans for dealing with them if they occur.
➢ Do you have potential competitors who may enter your market?
➢ Will suppliers always be able to supply the raw materials you need at the prices
you need?
➢ Could future developments in technology change how you do business?
4. In SWOT analysis how operational problems are addressed?
Once you have identified and prioritized your SWOT results, you can use them to develop
short-term and long-term strategies for your business. After all, the true value of this exercise is
in using the results to maximize the positive influences on your business and minimize the
negative ones. This is sometimes called a TOWS analysis.
For example, look at the strengths you identified, and then come up with ways to use
those strengths to maximize the opportunities (these are strength-opportunity strategies). Then,
look at how those same strengths can be used to minimize the threats you identified (these are
strength-threats strategies).
5. Explain the five possible threats that a business entity could face according to Porter’s
Five Forces Model.
Threats of New Entrants
New entrants in an industry bring new capacity and the desire to gain market share.
The seriousness of the threat depends on the barriers to enter a certain industry. The
higher these barriers to entry, the smaller the threat for existing players.
Bargaining power of suppliers
This force analyzes how much power and control a company’s supplier (also
known as the market of inputs) has over the potential to raise its prices or to reduce the
quality of purchased goods or services, which in turn would lower an industry’s profitability
potential. The concentration of suppliers and the availability of substitute suppliers are
important factors in determining supplier power. The fewer there are, the more power they
have.
Bargaining power of buyers
The bargaining power of buyers is also described as the market of outputs. This
force analyzes to what extent the customers are able to put the company under pressure,
which also affects the customer’s sensitivity to price changes. The customers have a lot
of power when there aren’t many of them and when the customers have many alternatives
to buy from. Moreover, it should be easy for them to switch from one company to another.
Threat of substitute product
The existence of products outside of the realm of the common product boundaries
increases the propensity of customers to switch to alternatives. In order to discover these
alternatives, one should look beyond similar products that are branded differently by
competitors. Instead, every product that serves a similar need for customers should be
taken into account.
Rivalry among Competitors
This last force of the Porter’s Five Forces examines how intense the current
competition is in the marketplace, which is determined by the number of existing
competitors and what each competitor is capable of doing. Rivalry is high when there are
a lot of competitors that are roughly equal in size and power, when the industry is growing
slowly and when consumers can easily switch to a competitor offering for little cost.
6. What is the measure of company’s profitability?
Profitability ratios look at sales revenue, operational expenses, balance sheet assets, and
shareholders' equity to determine a company's ability to profit. These financial indicators can
also reveal how effectively a company's current assets are being used to generate profit and
value for its owners and shareholders.
7. When can you say that product has a lower cost structure?
This cost structure is used to determine prices or costs in order to develop a product
pricing strategy. The important thing to remember is that you must know your costs. And when
a product has a low-cost structure, it indicates that the market demand for that product is high.
8. How can labor affects the cost of production?
As the demand for the products increases, the labor time increases to match the demand
of the product. This results in increasing the wages and costs of the laborers, underlying factors
include maintenance of the machine, as this increases the profit of the product decreases if it
has a fixed price but it won't be visible when certain amounts are demanded.
9. Explain how you will derive profitability? What is its importance in feasibility studies?
There are three steps in determining profit margin:
➢ Determine your business's net income (Revenue – Expenses).
➢ Divide your net income by your revenue (also called net sales).
➢ Multiply your total by 100 to get your profit margin percentage.
Feasibility studies are crucial for a company's growth. They might be able to assist a
business in determining where and how it will operate. They can also identify potential
hurdles to the company's operations and estimate the amount of capital needed to get it
up and running. This method will be used to determine the economic viability of a
company's idea.
10. Explain the 4 factors in building a competitive advantage over other brand of the same
products?

➢ Cost leadership
Cost leadership is the first competitive advantage businesses often attempt to gain.
Cost leadership as an advantage occurs when a business can offer the same quality
product as its competitors, but at a lower price. To use this strategy, a company must find
ways to produce goods at a lower cost through the perfection of production methods or
by the utilization of resources in a more efficient manner than competitors.
➢ Differentiation
Differentiation is a second strategy that businesses often use to set themselves
apart from competitors. In a differentiation strategy, low cost is only one of many possible
factors that may set aside a business from others. Business that differentiate themselves
typically look for one or more marketable attributes that they have that can set them apart
from their competitors.
➢ Defensive Strategies
Another way for a business to gain a competitive advantage is to utilize a defensive
strategy. The advantage gained by this type of strategy is that it allows the business to
further distance itself from its competition by, in some sense, maintaining a competitive
advantage it has gained. Therefore, this strategy is closely related to differentiation and
cost leadership because it is a method used by businesses to keep those advantages in
place once they have been attained.
➢ Strategic Alliances
Competitive advantages can also be gained by businesses that seek strategic
alliances with other businesses in related industries or within the same industry.
Businesses have to be careful not to cross the line between alliances and collusion,
though. Collusion occurs when businesses within the same industry work together to
artificially control prices.
11. Illustrate how you will compute efficiencies for labor and capital outputs.
Efficiency must also be measured as part of productivity. This provides you with a
benchmark against which you can compare the performance of your employees. Multiply the
number of standard labor hours by the actual amount of time worked. Your employees will be
more effective if the final number is close to 100. The ratio of products or services to physical
capital is known as capital productivity. Physical capital can be anything from equipment to real
estate to whatever else you need to make your products. Capital deepening improves physical
capital, which usually results in a higher output of goods or services.
12. When can you reached a decision that change is already inevitable? What is the purpose
of change?
When it comes to making decisions, it should come first, and by that, it should be placed
at the start of whatever project you're working on. When the output has already been presented,
change is unavoidable. However, if the expected output isn't what you want, you'll need to take
action, but change is unavoidable because the product has already been manufactured. The
purpose of the change is to improve the product that has already been produced, or perhaps to
add to or revamp the entire product.