3.1 Role of Marketing

Question 1

What is the role of marketing?

Answer 1

Ensures bus’ products meet customer needs with management to build customer loyalty and by organising bus’ resources

Question 2

What is market orientation

Answer 2

Developing product/service by focusing on customer needs by identifying them through market research (4Ps)

Question 3

What is product orientation

Answer 3

Firm designs product independently of known customer needs; uses marketing to convince customers to buy product (more product quality concerned)

Question 4

What is customer loyalty

Answer 4

When customers make repeated purchases even when price rises; don’t turn to competitors

Question 5

What does customer loyalty aim to do (2)

Answer 5

• build relationship w customers
• communicate regularly to encourage repeat purchases

e.g promo emails, deals/offers, rewards, positive brand image

Question 6

Successful marketing involves? (3)

Answer 6

• seek 1st-mover adv
• adding value
• create USP

Question 7

Facts about 1st mover adv

Answer 7

• being 1st w new product —> achieve much greater success (gain customers first)
• 1st to meet new/previously unrealised customer need
• anticipate future market trends

Question 8

Market changes helps you do what? (3)

Answer 8

• be aware of consumer spending habits
• understand current spending patterns to predict new ones —> comp adv
• fail to spot sales fall —> bus fail

Question 9

Market changes factors? (3)

Answer 9

1) economy (recession=cheaper/better-value products; growth= luxury items)
2) technology (patterns reflect current tech eg phone)
3) fashion (trends)

Question 10

Individual consumer market changes factors? (3)

Answer 10

1) age
2) life stage (DINKIES- luxury)
3) income

Question 11

How to respond to changing patterns? (4)

Answer 11

• adapt new products
• launch new products
• sell current products to new markets
• close unprofitable products/locations

Question 12

Why is it important to respond to changing patterns?

Answer 12

To remain competitive & gain comp adv- can lead to failure if not spotted :. Vital for long-term success

Question 13

Mass market definition

Answer 13

Bus Seles same product to all customers in same way; customer numbers= huge, bus produces large quantity but lots of comp exists

Question 14

5 factors of mass marketing?

Answer 14

• aims for high sales volume @ low price
• attempts to appeal to entire market w/ 1 basic marketing strategy
• similar customer needs across market
• wide sales outlet range/ wide availability
• extensive promo

Question 15

Adv of mass marketing?

Answer 15

Econ of scale (average production, marketing, distribution cost= low when products sold in large volumes

Question 16

2 disadvantages of mass markets?

Answer 16

1) products may not be suitable for sale in all counties (prefer product specific to needs)
2) mistakes w/ product= high costs (production volume)

Question 17

What is niche marketing?

Answer 17

Selling goods to small, clearly identifiable market segments, products= highly differentiated

Question 18

5 factories of niche marketing?

Answer 18

• premium prices
• small sales volume
• high skill base (expertise/skills shown clearly)(hard for large comp to find skilled labour)
• specific promo to attract target
• outlets clearly reflect image

Question 19

6 advs of niche marketing?

Answer 19

• less comp (small market)
• clear focus on small target group (marketing= cheap & accurate)
• firm becomes expert in segment
• usually attract premium prices
• high customer loyalty
• high profit margins (often)

Question 20

4 niche marketing disadvantages

Answer 20

• few econ of scale
• over-dependence on 1 product/market risk
• threat of comp (due to small market size)
• vulnerability to market changes (limited resources/product, smaller)

Question 21

Differences b/w niche & mass marketing (5)

Answer 21

• sales volume
• selling price
• promo style
• econ of scale
• similar/ diff customer needs

Question 22

Check notebook for comp markets

Answer 22

Exits when there’s a wide range of products/supplies for customers

Question 23

Purpose of market segmentation?

Answer 23

Develop products/market strategies appealing directly to specific M.S.

Question 24

What does market segmentation aim to do

Answer 24

• differentiate products/ market them effectively

- discover potential customer info through market research

Question 25

5 factors effective marketing consists of?

Answer 25

• uses market budgets effectively
• target market campaigns accurately
• identify market & new opp gaps
• differentiate products from comp (allow charging high prices)
• know/understand segments—> more likely to succeed

Question 26

3 types of market segmentation?

Answer 26

geographical, demographic, socio-demographic

Question 27

What’s geographical segmentation?

Answer 27

Segmentation according to area they live in (broad/specific eg cities/high crime rates)

Question 28

What’s demographic segmentation

Answer 28

Age, gender, ethnic group, fam characteristics, edu, occupation
*broadest method, wide range of diff criteria

Question 29

What’s socio-demographic

Answer 29

A- upper middle class
B- middle class
C1- lower middle
C2- skilled working class
D-working
E- poorest in society