Chapter 6

Question 1

Marketing

Definition

Answer 1

The management process responsible for identifying, anticipating and satisfying customer requirements, profitably,

Producing profitable sales, and driving revenue growth

Question 2

Steps in implementing a strategic marketing plan

Answer 2

Step one – identify the organisations, corporate objectives and the role of marketing and playing achieving them

Step two – carry out an audit of the external environment – PESTEL

STEP, THREE, - CARRY OUT AN AUDIT OF THE INTERNAL STRENGTHS AND WEAKNESSES OF THE ORGANISATION

SET FOur – SET OUT THE MARKETING OBJECTIVES – SMART

STEP FIVE, - IMPLEMENT THE PLAN AND COMMUNICATE IT TO THE WORKFORCE

STEP SIX – REVIEW REGULARLY

Question 3

The three levels of the environment in which an organisation operates 

Answer 3

macro environment – can affect the organisation that is outside of the Control

Micro environment – can affect the organisation for the organisation can influence it

Internal environment – all internal factors that are potentially controllable

Question 4

PESTEL

6 factors that enable an organisation to examine factors that influence it

Answer 4

Political

Economic

Social

Technological

Environmental

Legal

Question 5

The marketing mix

Definition

Answer 5


A company’s marketing mix is the combination of products, pricing, places and promotions it uses to differentiate itself from the competition.

Question 6

The four peas of the marketing mix

Answer 6

Product

Place

Price

Promotion

Question 7

How to service organisations differ from product delivery?

Answer 7

Intangibility – there is no physical products.

Immediate consumption – the service must be consumed there, and then

Inventory management – do not have the same inventory requirements as manufacturing

Involvement of the consumer – the consumer is a part of the service.

Question 8

The three peas relevant for companies in the service industry

Answer 8

People – standardisation is difficult making hard to achieve heterogeneity 

Process dash and efficient, user-friendly process will ensure repeat business

Physical evidence – the feel of the place in terms of ambience, atmosphere and quality – looking for something tangible to the service will be what is expected

Question 9

Formulating the marketing mix

Different considerations

Answer 9

Seasonal products.

The potential difference between the end consumer and the customer.

The mix may change is the marketing environment changes over time e.g. changes in technology.

Question 10

The aims of market research

Answer 10

Total market potential

Area market potential

Total industry sales

Relative market shares

Question 11

Market research

Primary data

Answer 11

Data collected for the specific purposes of the research in question

Question 12

Market research

Secondary data

Answer 12

The data is already generally available, e.g. government data, trade journals, et cetera

Question 13

Market segmentation
Kotler
Segments must be

Answer 13

Measurable

Accessible

Substantial

Question 14

Undifferentiated, marketing

Answer 14

The delivery of a single product in the market place with very little concern for segment analysis

Question 15

Differentiated, marketing

Answer 15

Where a company makes several products each aimed at a separate segment

Question 16

Concentrated marketing

Answer 16

Where the company focuses on a single segment for each product, hoping to meet the needs of that group better than any other organisation

Question 17

Post modern marketing

Answer 17

Creating customers messages for customers it aims to identify the way individual customers prefer to receive marketing messages.

Reject mess, marketing

Focuses on customising a message to individuals.

Flexible and interactive.

Question 18

Boston consulting group matrix

Answer 18

To help companies analyse their business units or product lines, a.k.a. the product portfolio

Question 19

Zero level distribution channel

Answer 19

Where is the manufacturer deals directly with a customer?

Question 20

One level channel

Answer 20

The distribution channel consist of the manufacture retail and consumer, i.e. only one intermediate tree

Question 21

Penetration pricing

Answer 21

Setting prices, low enough to stimulate rapid growth in market share

Question 22

Price skimming

Answer 22

The setting of a high price for a new product in order to benefit from early adopters

Question 23

Selective pricing

Answer 23

Setting prices to reflect demand, e.g. off-peak rail fares

Question 24

Predatory pricing

Answer 24

Pricing deliberately to damaged competition

Question 25

Dynamic pricing

Answer 25

Pricing that fluctuates with up-to-the-minute supply and demand information for customer activity 

Question 26

Pull marketing

Answer 26

To establish a loyal following and draw customers to the product, for example, mass media, promotions and referrals through word-of-mouth online and off-line

Question 27

Push marketing

Answer 27

To promote products by pushing them onto people, for example, sales promotions within supermarkets

More concerned with short-term sales

Question 28

Perceived quality pricing

Answer 28

 An increase in price due to the perception of quality 

Question 29

Steps involved in identify different market segments

Answer 29

Market research

Position products,

Identify targets

Promotional activity

Question 30

Social marketing

Answer 30

A process that applies marketing principles and techniques to create communicate and deliver value in order to influence targets, audience behaviours, that benefit society (public health, safety, the environment, and communities)