3 Marketing & Decision-making 11

Question 1

What is the Marketing Model?

Answer 1

A way to decide how to turn a marketing objective into a strategy

Question 2

What are the stages in the Marketing Model ?

Answer 2

1. Marketing Objectives
2. Gather Data
3. Form Hypothesis
4. Tests the Options
5. Control and Review

Question 3

Benefits of using Social Media for advertising?

Answer 3

1. More targeted towards the tastes and habits of customers
2. Social media is more interactive than traditional ‘one-way’ advertising
3. Crowd funding sites highlight that people are interested in getting involved in businesses creating a ‘two-way’ bond

Question 4

Customer Relationship Marketing…

Answer 4

• Use IT to build an apparent relationship between customer and producer by tailoring advertising to tastes and habits of the consumer
• The idea is for the customer to feel ‘known’ which can create loyalty
• It costs 5 times more to gain a customer than it does to keep one

Question 5

Dynamic Pricing…

Answer 5

• Prices move continually in line with changes in demand and supply
• This strategy is used by Center Parcs, low-cost airlines, rail companies and major hotel chains
• Center Parc’s computers are programmed to achieve a 97% usage rate

Question 6

Ethical Marketing…

Answer 6

Sacrifice profit when it is incompatible with morality
Examples are:
Recycling
Fairtrade
Healthier ingredients
• Companies are keen to be portrayed as ethical if their customers care….
• The problem is that customers say they care but their spending habits sometimes conflict with this sentiment