3. Operational Marketing Flashcards
What is the 4P Model and what do they stand for ?
What are different price strategies ? Describe the pros and Cons Price Skimming and Price Penetration
Give the definition and goals of Product Policy
Product Policy comprehends all decisions concerning the creation and organsisation of the product and service range
- Improvement of the market position
- Achieving marketing objectives (sales, market share)
- Ensure market- / price- or qualtity leadership
- Develop new customer segments
- Risk reduction through broad assortment
What are the three big dimensions of the product policy ?
QUALITY : High-quality products vs. standard quality
PRICE : Established in highprice-, middle- oder lowprice segment
BRAND : Producers- / Retailbrand vs. anonymous product or category brand
What are the different instruments of Product Policy and specify what it means for each one
There is Variation , Innovation, Elimination
In Innovation we distinguish between DIFFERENTIATION and DIVERSIFICATION ( horizontal,vertical, lateral)
Innovation = development of a new product/ service
Variation = Modification of products already in the market / assortment. Change of technical, aesthetic characteristics
Diversification = Expansion of the production program of products already in the assortment / market
Differentiation = Modification of a product. To set up a modified product as an alterantive or additional possibility
Elimination = Elimination of single products out of the product range
Explain the different Market Oriented Pricing strategies
Price above market: Consciously pricing of the product above the competition.
Copy market: Selling the item at the same price as the competitiors to maximize profit while staying competitive
Price below market: Using data as a benchmark and consciously pricing a product below competitors, to lure customers into your store.
Cost-based pricing involves calculating the total costs it takes to make a product, then adding a percentage markup to determine the final price.
Give a list of the different Pricing Strategies and give examples ( S.195)
A: Fixed Price Strategies : high, middle and low Price Strategy
B: Price Dynamisation Strategies : software adapts price to the market/ situation
C: Price Progession Strategies : Penetration and Skimming Strategy
D: Price Differentiation Strategies : depending on the time, product, regional, personal, amount
What is the Penetration Strategy? Give the Pros and cons
Starts with a low price. Price increases during the product- life-cycle
Pros:
- Setting low prices can be a marketing tool raising brand awareness.
- A quick way to gain market share and enter a competitive industry.
- It enables a firm to benefit from economies of scale, which enables lower average costs and a firm to compete.
- Over time, prices can increase and the firm becomes more profitable.
Cons:
- It might involve selling at a loss for first few months.
- It is risky if consumers have brand loyalty then may not switch despite low prices.
- A firm needs to gear up with high output straight from the start.
What is the Price Skimming Strategy and give the Pros and Cons
Starts with a high price. Price decreases during the product- life-cycle
Pros:
- Firm can increase total profit, leading to more resources for research and development
- Customers who are prepared to wait can benefit from falling prices
Cons
- may create a negative image of the firm.
- Selling at a high price means that the firm will only be selling small quantity for the early period. This could make it vulnerable to losing market share to a cheaper rival. Example: Android phones have increasingly been taking market share from Apple.
- It requires a degree of monopoly power.
Give decision Fields in Distribution
AQUISITIONAL Distribution : -> Grade of Distribution
- Distribution ways / Distribution partners
- Sales policy
- Sales entities
- Sales channel policy
PHYSICAL Distribution. -> delivery Service
- Order processing
- Storage
- Transport
- Packaging
- Logistics costs
Give different Promotion/Communication Target ?
- Reach (Offline-Marketing)
- Advertising contacts (contacts)
- User contacts (gross / net)
- Image (measurement with market research methods)
- Recall / Recognition (product-, brand- or advertising recognition)
- Branding / brand building
- Customer satisfaction
Describe the customer life cycle
Give some strategies of online marketing
Drive website traffic, generate leads, gain greater online visibility
Create an online presence, build brand awareness
Build engagement, form relationship with customers
Examples for car industry
Some facts about industry
- capital intense industry
- inventory risk
- focus on advertising
- make content/ pictures
Objectives
Build Trust with Customer Reviews
Be at the Top of Google SERP - Search engine result page
Bid on Competitor Keywords
Actively Manage your Negative Keyword List
Adjust your Campaign Budgets Based on Car-Buying Trends
Target the Right People
Compel Shoppers to Come into Your Store with Unique Offers
Goals
Increase brand awareness
Aquire new customers
New trends
- self driving
- electric vehicles
- connectivity
- profit pools
