5. Marketing (40%)

Question 1

What is marketing?

Answer 1

Create something Unique and valuable and Convince people to buy it

an integrated system of activities designed to plan,
price, promote and distribute, want-satisfying goods and
services to present and potential customers

Question 2

1 Key to successful marketing

Answer 2

• Understanding the customer
• provide a unique benefit that is wanted or needed by the customer (that the competition doesn’t provide+)

-This relates back the marketing definition: providing a want satisfying good or service

Question 3

What is your target market?

determining your target market

Answer 3

• the group(s) of customers/customer segments to whom you wish to direct your product toward
• they are a group of customers whose needs have NOT been sufficiently met by the competition

Question 4

What is the first step to locating a target market?

Answer 4

1. Bases for segmentation

Question 5

What are the bases of segmentation?

Answer 5

State of being:
Geographic -segmenting by region, population size, population density, climate

Demographic -segmenting by age, gender, income, education, household size, etc.

State of mind:
Psychographic -personality and lifestyle, AIO (activities, interests, opinions)

Product usage:
Volume -Usage rate, user status, readiness to buy

Benefits sought -benefits provided by the good or service. It is what the product Will Do for the consumer.

Question 6

RECAP of steps to perform benefits segmentation

Answer 6

1. segment on basis of benefits
2. describe using other bases (demographics vs psychographics)
3. name the other segments

Question 7

Step 2 of locating a target market?

Answer 7

Perceptual Mapping and Preference Analysis

Question 8

What is the purpose of perceptual mapping and preference analysis

Answer 8

-determine which of the segments will be the target market
-by finding the biggest gap between
how the customer perceives the competition meets their needs (perceptual map)
and what they really want (preference analysis)
-needs not met by competition

Question 9

Steps

Answer 9

• draw axes representing important dimensions/criteria by which customers perceive and evaluate different offerings
• plot positions of competing products (according to customer perceptions) (perceptual mapping)
• locate each segment’s ideal product (preference analysis)
• determine the target market

Question 10

Positioning

Answer 10

• find a distinct position for your product in the customers mind
• the position should communicate that the product provides a unique benefit
• position the product in the target’s mind (perception) as close to their ideal as possible (preference)

Question 11

2 approaches to positioning

Answer 11

consumer approach: how well does your position fit with the target market’s ideal offering?

competitive approach: how does your offering compare to competitors?

Question 12

2nd key to successful marketing

Answer 12

Convince the customer that the product provides that unique benefit, through your product, pricing, promotion, and distribution/place decisions

The 4 Ps are integrated/consistent system of activities

All parts of organization must have clear idea of unique benefit, the value proposition
-should be a clear concise statement of the products unique benefits-acts as a glue that keeps decisions consistent

Question 13

What are the product classifications?

Answer 13

Convenience Good/service
Shopping good/service
Specialty good/service
Unsought good/service

Question 14

What are convenience goods/services?

Answer 14

Staples -branding, max exposure, shelf position
Impulse -max exposure, shelf position, point of purchase
Emergency -near point of purchase, readily accessible

Question 15

What are the types of shopping goods?

Answer 15

Homogenous -exposure for price comparison

Heterogeneous -exposure near similar products

Question 16

Specialty goods/service

Answer 16

selective distinction for exclusivity (Rolex watch)

Question 17

Unsought good/service

Answer 17

aggressive promo, personal selling (life insurance)

Question 18

Implications of product classifications for market strategy

Answer 18

different markets classify products differently so it’s important to see your product as your customer does. For example, unsought goods can require heavy advertising, this might imply selective distribution

Question 19

What is the Total Product Concept?

Answer 19

physical features needed to support Value Proposition, but not sufficient

remember: product as defined by value proposition is “what you offer…that helps customer complete either functional, social, or emotional jobsor helps them satisfy basic needs”

Its a total package of benefits as seen from the eyes of the consumer, the experience they have with the product

Question 20

What is the total package of benefits that the customers experience the product through?

Answer 20

Brand
Packaging
Service
Warranty
Delivery
Credit
Atmosphere
Image/reputation
Accessibility
Price

Question 21

What is a brand?

Answer 21

• a collection of perceptions in the mind of the consumer
• a brand is built not only through effective communications or appealing logos
• it is built through the Total experience that the product offers

Brand names communicate value proposition

Question 22

Creating Brand Insistence: the 5 drivers

Answer 22

Emotional connection: does your brand connect with people on an emotional level?

Question 23

Value:

Answer 23

does your brand deliver good value for the price?

Question 24

Accessibility:

Answer 24

Do customers and potential customers perceive your brand to be convenient?

Question 25

Awareness:

Answer 25

The cornerstone of strong brands:

Are your target customers and key stakeholders aware of your brand? is it the first thing that comes to their minds?

Question 26

Relevant differentiation:

Answer 26

the leading edge indicator of future market share and profitability.
Is your brand unique or relevant in customer-compelling ways?

Question 27

Brand insistence building blocks/stages

Answer 27

Brand relevance | Brand Awareness>Purchase consideration set
Brand value | Brand differentiation>Brand preference
Brand accessibility>Brand purchase
Brand emotional connection>Brand loyalty