UCSD MGT 103 Final – Flashcards
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5 categories (including %) of product adopters
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Innovators - 2.5% Early Adopters - 13.5 % Early Majority - 34% Late Majority - 34% Laggards - 16%
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most important group of product adopters
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early majority
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4 things majority adopters ARE
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1. more cost averse 2. less tech savvy 3. less engaged 4. less forgiving about product faults
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5 things majority adopters NEED
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1. lower cost 2. ease/convenience 3. more persuasion 4. more reliability 5. more assistance
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80/20 rules
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80% of your business comes from 20% of your customers
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most important thing to include in market share
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yourself!!!!
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who decides who to track in the market share?
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marketing w/ input from sales
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do you have to be profitable in your first year?
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no
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what % confidence should you be in your sales forecast?
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between 70-85%
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how much money do you need to hit to make 20/20 in revenue?
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ONE BILLION DOLLAR$
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price: definition
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what product/service is listed at
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cost: definition
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price paid for product/service
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value: definition
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ratio of perceived benefits to price
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what % of Gross National Product does the service industry account for?
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50%
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class reading: on a scale of 1-10, how important does Jeff Bezos view the computer?
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11 or 12
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class reading: Amazon's customer value proposition is: a. operational efficiency b. customer focus c. innovation d. all of the above
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d. all of the above
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the most common answer in marketing
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"no" + reason why
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the marketing decile is based on: a. your own company b. the entire market basket
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b. the entire market basket
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2 ways to grow business
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1. steal business 2. expand market
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in the customer decile, the number in the 10th decile (first column) should be ______ than the 1st decile (last column) a. smaller b. larger
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a. smaller
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marketing mix that Dexcom uses
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1. product 2. price 3. promotion 4. ** partners **
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5 steps of common sales process (think: Old Farts Passing Are Smelly)
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1. Opening 2. Fact Finding 3. Presentation (FAB) 4. Assess Interest/Answer Q's 5. Seek Commitment
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what is FAB?
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1. Features - Fact - what the product does 2. Advantages - "So.." - How it's different/better 3. Benefits - "What this means for you..."
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the other half of a sales call (besides the salesperson) is the ???
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buyer!!!
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3 keys to a successful sales(person)
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1. likable 2. trusted 3. competent
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most of a leader's important judgment calls reside in one of the 3 following domains
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1. people ** 2. strategy 3. crisis
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3 phases of judgment calls
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1. preparation - frame the issue 2. the "call" - the decision 3. execution - making it happen
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3 sales incentive plans
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1. ranking bonus plan 2. commission based bonus plan 3. goal based bonus plan
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ranking bonus plan: what is it?
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- whoever does the best gets the most, worst person gets $0 - rarely used***
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ranking bonus plan: pros
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1. easy to understand 2. easy to budget
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ranking bonus plan: cons
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1. reps hate it 2. management hates it
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commission based bonus plan: what is it?
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your bonus is based on the number of sales you make
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commission based bonus plan: pros
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1. highly motivating to most reps 2. often supported by sales management, finance, and senior management
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commission based bonus plan: cons
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1. doesn't account for variability among territories
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goal based plan: when is it used?
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- most commonly used, but NOT during launch period
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goal based plan: pros
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1. used often for established products and markets 2. factors in variance among territories
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goal based plan: cons
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1. ever present "cloud" among sales reps
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what bonus plan is used at product launch and between 0-6 months of product launch?
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commission plan
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what bonus plan is used post-product launch (6 months and on)?
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goal based plan
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Flame Broiler Case Study: background info
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- HQ in Irvine - 180 franchise stores - concept: healthy fast-casual - ideal franchise for "entry level" entrepreneurs
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why is Flame Broiler an ideal franchise for "entry level" entrepreneurs?
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1. lower entry costs (vs. "fast food" or restaurants) 2. low inventory (limited menu) 3. seating area BUT majority business is walk-in/take-out 4. strong corporate training and guidance
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Flame Broiler's 20th anniversary tagline
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"#20yearsofFlame"
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Flame Broiler: franchise requirements
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1. $25,000 one time franchise fee 2. $275-$300K capital require for store build out 3. 5% royalty fee to corporate 4. 3% marketing fee (even if you do your own ads)
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Flame Broiler: focus for success (4)
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1. food quality *** 2. customer service 3. store cleanliness 4. attitude (employee "energy")
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the 90/10 of a perfect boss means what?
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90% selfless leadership, 10% benevolent dictator
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what is the essence of sales?
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FAB selling
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regardless of the factors involved, the price of a product or service ____________ of the product/service as well as __________.
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must cover the cost; earn a reasonable profit
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2 types of pricing models for products
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1. target cost pricing 2. cost plus pricing
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pricing model for services
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time & material pricing
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target cost pricing: what is it
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- products that are not easily differentiated - "market" determines the range - many competitors, you're not #1 in the market - in order to make a profit, you have to make your product fit into the prices ex. fast food
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cost plus pricing: what is it
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- new or unique product - you (not the market) set the price - typically the market leader ex. Apple
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in cost plus pricing, you must do what 2 things to maintain market leadership and healthy profits
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1. innovate 2. upload premium brand image
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value-pricing: what is it
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increasing product benefits while maintaining or decreasing the price
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the sales budget is _____________________
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the management's best estimate of sales revenue for the budget period
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sales forecasting: definition
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process for estimating future sales
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what is the only thing you know for certain about a sales forecast?
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that it will be "wrong"
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foundational anchor of marketing
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positioning statement
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foundational anchor of sales
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FAB
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how much is a fully loaded sales rep?
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$210K
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Base Salary equation
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base salary / $ per hr = avg dollars per hr
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median income of household
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$56,000/yr
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requirement for a man in a workplace
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respect
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requirement for woman in workplace
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affirmation
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class reading: difference between leadership styles of Bob Lutz and Mary Barra (GM)
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Lutz's leadership was "from-the-gut" meaning he more often relied on his own decision making process; Mary Barra is more of an "our" leader and her motto might be more like "Let's all figure this out **together**"
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class reading: what is Mary Barra's Chevette/Firebird dilemma?
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combining practicality + swoon all at a low cost
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class reading: what does the "empty chair" mean at Amazon?
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it's an open seat at a conference table and is considered the customer, the most important person in the room
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class reading: who told Sheryl Sandberg to "lean into the ranking..." ?
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her assistant
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class reading: what is the "capital gap"?
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the disproportionately low share of available venture capital to women
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class reading: what does the CEO of Dexcom say is the most innovative aspect of their company?
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they rely on people with very different expertise to collaborate on different aspects of a product simultaneously
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class reading: what is a critical component to Dexcom's innovative prowess?
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the interplay between focusing tightly on a narrow set of customer problems, while drawing widely on a variety of technologies
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what is the essence of a company?
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company culture
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a positioning statement is an __________ a. external statement b. internal statement
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b. internal statement
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what is the biggest expense for GM?
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pensions for retired people
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a tag line is _________ a. external b. internal
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a. external
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if a business decision is either going to go terribly or very well, which way is it more likely to go?
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terribly
