Chapter 6: Marketing Part 2

Question 1

Marketing Mix

definition

Answer 1

Blend of 4 elements of marketing mix to satisfy chosen customer’s segments, where success is determined by its unique combination

Question 2

Product

Answer 2

• Anything offered to the market for attention, acquisition and use of consumption that might satisfy a want or need
• Can be tangible goods or intangible goods

Question 3

Price

Answer 3

• The amount of money charged for goods and services

- It is the sum of all values exchanged for the benefits of having or using the g/s

Question 4

Promotion

Answer 4

• The total promotion mix including PR, advertising, sales promotion, personal selling and direct marketing tool
• Communicate customer value and build customer relationship

Question 5

Place

Answer 5

• An organised network of agencies which performs all activities required
• Link procedures to users to accomplish marketing task
• Getting product to customers

Question 6

Standardisation

definition

Answer 6

Offering a uniform product on a regional or worldwide basis

Question 7

Drivers to Standardisation;

Common Customer Needs

Answer 7

• Customer needs are similar across countries

- Consumers seek for the same kind of functional benefits or emotional benefits around the world

Question 8

Drivers to Standardisation;

Global Customers

Answer 8

• B2B
• Many MNCs around the world seek the same resources or raw materials, making them essentially a customer
• The resources needed are centralised or at least regional, making the demand for products or services harmonised.

Question 9

Drivers to Standardisation;

Scale Economies

Answer 9

• It is cost saving from scale economies in manufacturing and distributing globalised products
• Savings is realised with sourcing efficiency and lowered R&D expenditure
• This allows companies to reduce price and gain competitive advantage

Question 10

Drivers to Standardisation;

Time to Market

Answer 10

• Innovation is not enough, companies should seek ways to shorten time to bring new product projects to the market
• Especially for products with short product life cycle
• By centralising research and consolidating new product development

Question 11

Drivers to Standardisation;

FTA

Answer 11

• Formation of FTAs encourage companies to launch regional product
• Contributes to harmonisation of technical standards

Question 12

Drivers to Adaptation:

Consumer preferences

Answer 12

• Consumers tastes and preferences differ around the world

- Tailor its product or service to satisfy its local consumers

Question 13

Drivers to Adaptation:

Strong Local Competitors

Answer 13

• MNCs are pressured to customise its products as local competition is intense
• Local consumers are likely to favour local brands that are in line with their preferences

Question 14

Drivers to Adaptation:

Managerial Motivation

Answer 14

• Involve local managers in product design, tapping into their creativity and listening to their feedback on new product proposal
• Foster morale and feeling of belonging
• Keeps highly talented local managers

Question 15

Drivers to Adaptation:

Environmental Conditions

Answer 15

• Local circumstances can encourage companies to adapt

- To tap demand in said country by adapting to their local environment

Question 16

Adaptation

definition

Answer 16

• Changes made to suit local consumer tastes and preferences