contains besides essays

Question 1

pricing approaches

Answer 1

Cost- oriented
Demand-oriented
Competitors-oriented
Value-oriented

Question 2

Def + Adv and dis for cost-oriented pricing

Answer 2

Cost-oriented pricing involves setting price based on the cost of producing a product or service, along with a markup for profit.
+Cost recovery: cost-oriented pricing ensures that the business recovers its
production costs and avoids losses.
+provides consistent profit, ensuring that they always earn a set profit on each product or service sold.

-no consideration for competition: cost-oriented price does not consider the prices set by competitors, which could make the business uncompetitive in the market.
-no consideration for value: not take into account the perceived value of the product or service to the customer, which could result in the business undervaluing its products.

Question 3

Demand oriented pricing
Def+adv+dis

Answer 3

It involves setting prices based on the level of demand for a product or service.

+maximize revenue:by setting prices according to the demand for a product or service, companies can maximize their revenue

+help with inventory management: by adjusting prices according to demand, companies can manage their inventory better, avoiding too much stock or too little stock.

-hard to adopt. Because companies need precise information about what customers want and how much they are willing to pay. This data can be challenging to obtain.

-may lead to price instability: demand-oriented pricing can lead to price instability, as prices may need to be adjusted frequently to align with changes in customer demand.

Question 4

Economy pricing
Def+adv+dis

Answer 4

Economy pricing involves setting a low price for low quality products.
+Attract price-sensitive customers who are looking for the lowest price possible
+compete with other competitors on price

-damage the brand image of the company, as customers may perceive the products or services as being of lower quality due to their lower price.
-lead to lower profit margins for the company. This is because the company is selling its products or service at a lower price, which may not cover the costs of production or provide enough profit for the company.

Question 5

Premium
Def +adv+dis

Answer 5

It involves setting a high price for high quality products.

+high price margins: premium pricing allows companies to charge a higher price for their products, which can result in higher profit margins.

+brand image: premium pricing helps create a perception of luxury, which can enhance the brand image and attract customers who value high-quality products.

-limited customer base: premium pricing may limit the customer base, as not everyone is willing to pay a higher price for a product or service.

-competition: premium pricing can attract competition from other companies who offer similar products or services at lower prices.

Question 6

Skimming price strategies

Answer 6

Skimming is a pricing strategy in which a company sets a high initial price for a product or service when it is first introduced to the market.

+allows companies to cover their development and production costs quickly
+can lead to higher profits in the short term

-can discourage price-sensitive customers from purchasing the product
-may limit the potential market size, as some customers may wait for the price to drop before purchasing

Eg. Apple has been know to use price skimming when launching their new products. They usually set a high price initially and then gradually lower it over time as the product becomes more widely adopted and production costs decrease. This strategy has been successful for Apple as their customers are willing to pay a premium price for the latest technology

Question 7

Price discrimination

Answer 7

Company charges different prices for the same product or services based on various factors, such as customer segment, location or quantity purchased.

+maximize revenue and profit by targeting different customer segments with varying willingness to pay

• can be complex and costly to adopt. Companies need to collect and analyze customer data to identify segments with different willingness to pay and set prices accordingly. This requires significant resources and expertise.

Question 8

Loss leaders

Answer 8

Selling a product at a price below its market cost or even below the cost of production. This idea is to attract customers to the store with the hope that they will also purchase other, more profitable items. Commonly used by supermarkets and other retail stores.

+ can lead to the sales of additional, more profitable items.
- risk of customers only purchasing the loss leader items

Question 9

Predatory

Answer 9

Sets its prices below cost to drive competitors out of the market or deter new entrants. Once the competition has been eliminated, the company can then raise its prices to cover losses and take advantages of its dominant market position.

+quickly gain market share by eliminating or weakening competition
+deter potential competitors from entering the market, reducing future competitor threats .

—significant short-term financial losses at the business sells products below cost.

Question 10

stakeholder considerations

Answer 10

Various factors that companies must take into account when making decisions that affect their stakeholders.

-Consumer willingness to pay price premium: Companies must consider whether their customers are willing to pay higher prices for their products or services.
- increased consumer engagement: by setting prices that are perceived as fair and reasonable, companies can increase customer engagement and loyalty. Customers are more likely to make repeat purchases.
- employee willingness to switch: if a company changes its pricing strategy, employees may need to learn new skill. Companies need to consider employee willingness to switch to new roles.
-importance of sustainability for investors

Question 11

Conceptualizations of sustainability marketing

Answer 11

Auxiliary sustainability marketing

Reformative sustainability marketing

Transformative sustainability marketing

Question 12

Auxiliary sustainability marketing

Answer 12

Integrating sustainability into the traditional marketing mix (product , place and promotion) without significantly changing the way they do business. This approach aims to make small improvements to a company’s impact on the environment and society while still making a profit.

Cradle-to-cradle approach in the content of auxiliary sustainability marketing means designing and producing products in a way that they can fully recycled. Turing waste into resources and minimizing environmental impact throughout the product lifecycle.

Question 13

Example of Auxiliary sustainability marketing

Answer 13

Starbucks. Starbucks offers ethically-sourced coffee beans through its coffee and farmer equity practice program.

Starbucks offers reusable cups and provide discounts to customers who use reusable cup for their drinks.

Starbucks has invested in energy-efficient store and green building design. Reduce energy consumption

Starbucks has promotion campaigns like”grounds for your garden” program where customers can take home used coffee grounds to use in their gardens.

Question 14

Reformative sustainability marketing

Answer 14

Focuses on promoting sustainable lifestyles and encouraging customers to make more environmental friendly choices. This approach includes social marketing, demarketing and the sharing economy.

Question 15

Example of Reformative sustainability marketing

Answer 15

Social marketing: Starbucks has discounts to customers who bring reusable cup for their drinks.

Demarketing: WWF’s earth hour campaign encourages people to turn off their lights for one hour each year to raise awareness about climate change.

Sharing economy: Airbnb enable people to rent out their rooms for travelers, reducing the need for new hotel construction and promoting more efficient use of existing resources

Question 16

Transformative sustainability marketing

Answer 16

Transformative sustainability marketing involves institutional change, new business models, supporting social entrepreneurs, encouraging groups of citizens to work together and influencing cultural and social norms as wells s government intervention.

Question 17

Example of transformative sustainability marketing

Answer 17

1. Institutional change: Tesla has played a key role in encouraging the use of electric cars, which had led to traditional car manufacturers reconsidering their plans and investing in sustainable technologies.

2.new business model: IKEA has introduced program called”buy back”, where consumers can return old IKEA furniture for the store credit, which encourages reuse and reduce waste. And also provides an affordable option for customers who may not be able to affords new furniture.

3. Social entrepreneurship

Starbucks supports local farmers and the environment by promoting sustainable coffee farming practices through their C.A.F.E practices program.

4. Collective citizen action:
   Apple encourage its customers to recycle the old devices through its Apple trade in program.
5. Cultural or social norms:

Patagonia has stand against”fast fashion” and have launched campaigns such as”don’t buy this jacket”, encouraging customers to consider the environment and only purchase what they need.

6. Government intervention
   IKEA has commented to using 100% renewable energy in their stores and have partnered with governments to support reforestation projects.

Question 18

Models of communications /linear model of communication

Answer 18

The linear model of communication is a simple one-way communication model where a sender sends a message to a receiver through a channel. (Advertising)

Question 19

Model of communication/ two-step model

Answer 19

The opinion leader( some one in your social networks)and opinion former (expertise) play a crucial role in helping you navigate the overwhelming amount of information available and provide you with the guidance and motivation you need to take action

Question 20

Models of communications/ Interaction communications

Answer 20

Interaction communication models is a communication process in which people exchange information, ideas and thoughts through a back-and -forth exchange.

Question 21

Models of communications: The AIDA models

Answer 21

The AIDA model is a four-step model that describes the stages a consumer goes through before making a purchase. It starts with getting the customer’s attention then creating interest in the product, followed by desire to own it. The finally take action to purchase.

Question 22

models of communications / DRIP

Answer 22

DRIP marketing involves sending a series of messages to customers over a period of time.
D: differentiated- standing out from competition.
Airbnb by using “one-of-a-kind”experiences in variety of locations around the world to stand out from traditional hotels.
R: reinforce,reinforcing the message that already been delivered through additional message
After a user created an account, Airbnb reinforces the benefits of booking through Airbnb. Providing personalized recommendations based on the user’s search history.

I:inform, providing relevant information
Airbnb send remainders to complete the booking has been left unfinished.

p: persuade. Airbnb ofter limited-time discounts for booking a certain number of days or referring friends to encourage consumer make purchase.

Question 23

SMART objectives

Answer 23

S: specific
M:measurement
A:achievable
R: relevant
T: time-bound: deadline

Question 24

Culture&marketing communications

Answer 24

Cultural plays a critical role in marketing communication because it affect how people interpret and respond the message from a brand or company. When creating a marketing campaign. It’s important to understand the cultural context of the target audience, including their beliefs, values and cultural taboos.

Question 25

Example of companies that made mistakes by ignoring cultural taboos

Answer 25

Dolce& Gabbana’s China Ad Campaign: In 2008, Italian luxury brand Dolce&Gabbana released a series of ads featuring a Chinese model attempting to eat Italian food with chopsticks. The ads were criticized for mocking Chinese culture. The controversy led to the cancellation of a major Dolce&Gabbana fashion show in China and a significant drop in sales.

Question 26

Digital marketing / points that are related to the changing landscape of marketing and promotion in the digital age.

Answer 26

Digital promotions enable a conversation: this means that unlike transitional promotion methods, digital promotions allow for interaction between consumers and producers. Consumers can engage with a brand though likes, shares, posting photos, and user-generated content(UGC).

Empowers consumers to build or destroy brands: social media and other digital channels give consumers a platform to share their opinions and experiences with a brand, which can either positively or negatively impact a brand’s reputation.

opportunities and challenges: digital promotions present new opportunities for marketers, but also come with challenges. There is no reliable measure of effectiveness, ongoing privacy issues and the effectiveness of targeting can be uncertain.

Advert blocking: Many customers use ad blockers to avoid seeing advertisements online, which can limit a brand’s reach.

Rise of fraud on the internet：Hacking into social media accounts may pose content content to deceive consumers, which can damage a brand’s reputation.

Question 27

digital marketing def

Answer 27

Digital marketing refers to the use of electronic devices, such as computers, smartphones, and other technologies, to promote and sell products or services. It involves using various tools and techniques to reach potential consumers online and create a strong online presence.

Question 28

mobile marketing def

Answer 28

Mobile marketing is a way for organizations to connect and interact with their audience using mobile devices and networks.

Question 29

social media def

Answer 29

social media marketing is a type of digital marketing that uses social media platforms and online communities to promote products.

Question 30

Internet marketing def

Answer 30

marketing communications through the use of internet technologies(email)

Question 31

e-marketing

Answer 31

refers to specifically to marketing effects that use electronic devices

Question 32

ethical Concerns in Avatars

Answer 32

the ehical concern arises when avatars are designed to look like real people without their consent, or when they are used to promote products services that are inappropriate or harmful.

Question 33

social media listening

Answer 33

Social media listening is monitoring social media platforms to understand and analyze what consumers say about a brand, product, or service. It is an important aspect of digital marketing because it helps businesses to identify and respond to customer needs, complaints, and feedback in real time. By using social media listening tools, businesses can track and analyze user-generated content, such as product reviews, blog posts, discussion forums, and social media comments.

Question 34

consumer agency

Answer 34

consumer agency refers to the increasing power of consumers to shape the marketplace through their purchasing decisions and their ability to share their experiences and opinions online. With the rise of social media and user-generated content, consumers have become more empowered and are increasing relying on peer reviews and recommendations before making purchase decisions.

Question 35

What is the impact of digital marketing on the control of businesses?

Answer 35

Digital marketing has shifted the controlt from businesses to consumers, as users now have the power to generate, share, and comment on content related to brands and products. This requires businesses to be more responsive and transparent in their communication and to actively engage with customers on social media platforms. It also raises ethical concerns regarding privacy, data collection, and the use of personal information for marketing purposes.

Question 36

Techniques used in digital marketing

Answer 36

banner advertising involves displaying banner ads on websites to promote a brand or products

Sponsorship involves sponsoring a particular event or website to increase brand visibility

search marketing involves optimizing websites to appear higher on search engine results pages through search engine optimization or pay-per-click advertising.

Lead generation involves capturing the contact information of potential customers and making them make purchases. The information collected typically includes the person’s name, email address.

Rich media refers to online advertising that includes advanced features like video. For example, a rich media ad might include a game that they can play within the ad.

Question 37

when promoting digitally, there are several important things to consider, including:

Answer 37

1. cost: the cost of digital marketing can vary depending on the platform and techniques used. It’s important to determine a budget that aligns with your marketing goals.
2. Timeliness: Digital marketing can provide real-time results and allows for quick adjustments to campaigns. It’s important to consider timing and frequency of campaigns to maximize effectiveness.
3. Formal: Digital marketing offers a variety of formats such as text, images, videos, and interactive media. It’s important to choose a format that aligns with your marketing message and target audience.
4. Personaliza: personalized marketing messages can improve customer engagement and conversions. It’s important to consider personalization techniques such as targeting based on demographics or past behavior.
5. Location-based: Location-based marketing allows for targeting based on the user’s geographic location.
6. Intrusive: Some digital marketing techniques can be considered intrusive and annoying to customers. It’s important to consider the user experience and find a balance between promotion and intrusion to avoid turning off potential customers.

Question 38

ethical considerations

Answer 38

ownership: who owns the content we create and share? (copyright)
Security-how secure is the data that we share?
Accessibility: does everyone that wants to access have access?
It’s important to ensure that everyone, regardless of ability, can access digital marketing content.

Question 39

Measuring effectiveness

Answer 39

Click-through rate(CTR) is a common measurement that shows the ratio of clicks per visitor. However, CTR doesn’t always indicate effectiveness as clicks can be accidental or from the wrong demographic.

Question 40

methods to measure the effectiveness of digital marketing

Answer 40

Search marketing communication: This includes measuring the number of times a website appears in search engines like Google, as well as tracking how often people click on those links.

Email marketing communication: This involves tracking the number of people who open an email, click on a link within the email, and finally make a purchase.

Social media communications: This includes measuring the number of likes, shares, comments, and followers on social media.

Content marketing communication: this involves measuring the number of views, likes, and comments on blog posts, videos and other forms of content.

Mobile marketing communication: this includes tracking how often mobile ads are viewed, clicked on, and lead to a desired action, such as a purchase or app download.

Question 41

Crowdsourcing

Answer 41

Crowdsourcing marketing is a promotional strategy that involves collecting information from the general public to guide a company’s product development and advertising efforts. It allows customers to contribute their ideas about how a business should operate or what features that company incorporate into its products.

Question 42

examples of crowdsourcing/ Lego

Answer 42

Lego has used crowdsouring marketing through its platforms called:”Lego ideas”, user can submit their own ideas of Lego model. Users can choose to vote for ideas have been posted. If an idea receives 10,000 supports it may be produced into a real Lego set to be sold to the public.

Question 43

examples of crowdsourcing/ Starbucks

Answer 43

My Starbucks idea
Ideas from new products or improvements to existing ones. The users can vote the idea been posted. Starbucks has already adopt some advice like mobile payment.

Question 44

Digital marketing success stories political branding

Answer 44

Obama became the candidate of the people
-Started the age of digital politics

Digital media provides the platforms to “tell the story” together

-Cheap and readily available tools
-Citizens feel as if they are part of the conversation and connect to the candidate

Tools are used to keep the dialogue active

Extremely public