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Question 1

what is the core aim of marketing activity

Answer 1

to create loyal customers by providing value that addresses benefits sought

Question 2

when purchasing a computer, you get hardware, software and a waranty/service deal from Deli. This means that deli is adressing:

Answer 2

the product layers

Question 3

you just got a job working for Tesco doing marketing research. You notice that tesco offers customers a price match guarantee. you recogonize this as an example of:

Answer 3

competitor-based pricing, which can lead to unfavorable price wars

Question 4

3 ways to set pricing:

Answer 4

production / selling approach - cost-based approach:
- setting price based on cost of producing, distributing, selling + a fair rate of return for the company’s effort and risk

marketing approach - customer value-based pricing:
- how much customers are willing to pay for it

competitor based pricing - market approach:
- setting prices based on competitor’s strategies, prices, costs and market offerings

Question 5

additional pricing approaches

Answer 5

• premium pricing:
  high prices = high quality
• freemium
  businesses use if they want to offer customers free services in addition to paid options
• penetration pricing
  setting a low price for a new product
• price skimming
  price starts high then reduces progressively
• product line
  company offers a range of products or services at different price points, with each product having a distinct set of features and benefits
• bundle pricing
  two or more complimentary products are sold together
• captive product pricing
  devised to attract a large vol of customers to a one-time purchase of a lower-priced core product that requires accessory products for the main product to function.

Question 6

psychological considerations (pricing)

Answer 6

reference pricing: that price which users compare with the price of a competitors product or the previous advertised price
psychological pricing: e.g £3.99

Question 7

marketing / distribution channel

Answer 7

a set of independent organisations that help make a product available for use or consumption by the consumer or business user

Question 8

different marketing channels

Answer 8

direct: product to consumer e.g. Avon
indirect: goes through agent, wholesaler retailer.

Question 9

omnichannel structure

Answer 9

creating your brands presence across multiple online and offline channels

Question 10

intermediaries

Answer 10

independent firms that assist in the flow of goods and services from producers to end-users. they include agents, wholesalers, and retailers
+ marketing access
+ transactional value (e.g. assortment, storage, sorting, transportation)
- add margins
manufacturers can loose control over marketing aspects

Question 11

steps to develop a channel strategy

Answer 11

1) analysing consumer needs (offline or online, nearby locations)
2) setting channel objectives (targeted levels of customer service, distribution intensity)
3) identifying major channel alternatives (how many, responsibilities of intermediaries)
4) evaluation (based on variables including strategy, competitors, environment…)

Question 12

loss leader pricing

Answer 12

a marketing approach is intentionally sold at a loss or minimal profit to attract customers

Question 13

good value pricing

Answer 13

the practice of pricing a product based on its quality or the service that it provides to a customer

Question 14

the marketing decision-making process

Answer 14

manipulating such concepts as marketing-mix (to see how it affects sales), reasoning, developing decision alternatives, abstract thinking, and sometimes carrying out computations.

Question 15

the BCG matrix

Answer 15

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or develop products.