Ch.8 - Strategies for products and markets

Question 1

What are stages of marketing?

Answer 1

1. Strategic analysis = market research
2. Strategic choice = market segmentation (selecting a target market)
3. Implementation = marketing mix (developing marketing strategy)

Question 2

What is marketing research?

Answer 2

– systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services

o Desk research – gathering and analysis of existing (secondary) data
o Field research – collection of new (primary) information directly from respondents

=> Things to consider: Cost, historic vs future, reliability of data, adaptability

Question 3

What is market segmentation?

Answer 3

– the division of the market into homogenous groups of potential customers who may be treated similarly for marketing purposes

 Industrial segmentation (B2B) – geographic, company size, company type, purchasing characteristics
 Consumer segmentation (B2C) – geographic, demographic, purchasing motivation, purchasing characteristics

Question 4

What is marketing mix?

Answer 4

- set of controllable marketing variable that a firm blend to produce the response it wants in the target market
	Product
	Promotion
	Place 
	Price				
	People 
	Process
	Physical evidence

Question 5

What are key attributes of product?

Answer 5

-> basic product -> actual product -> augmented product

 Branding – cowboy brands (overpriced for the quality), economy (low price, low quality), premium brands (high price, high quality), bargain brands (low price, good quality)

Question 6

What are key attributes of promotion?

Answer 6

• push vs pull promotion, main forms: advertising, sales promotion, public relations, personal selling

Question 7

What are key attributes of place?

Answer 7

• direct vs indirect (via distributors, retailers, etc.) selling

Question 8

What are key attributes of price?

Answer 8

Key factors to consider: cost, customers, competition, corporate objectives (low price = increased market share, high price = premium brand)

 Pricing strategies – price skimming (initial high prices to skim off customers), penetration (initial low price to increase market share), price discrimination (different prices to difference customer groups), perceived quality (price reflects perceived value by customer), going rate (match competition or to meet market conditions, e.g. fuel), cost plus pricing (adding mark-up to the cost)

Question 9

What are key attributes of people, process and physical evidence?

Answer 9

People – attitude, professionalism, friendliness and knowledge

Process – the use of appropriate systems and procedures to enhance quality

Physical evidence – customers can actually see or experience the service