Exam 2 (Chapters 10, 11, 12)

Question 1

Three levels of a product

Answer 1

Core product defines the fundamental need being meet. Fundamental needs are generic in nature (e.g. transportation, data storage or self-esteem).
Actual product is the specific offering aimed at meeting a core need. This includes attributes such as; styling, branding, performance features and packaging. Augmented product, which enhances the actual product by offering additional services and benefits, making the product a more attractive proposition to the consumer. after-sales support, maintenance and affordable finance.

Question 2

Three categories of product development

Answer 2

Product improvement/modification: Unless products are to be replaced by completely new entities, they must be upgraded and enhanced as a matter of necessity.
Product imitation: This strategy involves capitalising on the initiatives of
others and suits organisations that are risk averse and/or have limited funds to invest.
Product innovation: This involves bringing new and novel ideas to the market place.

Question 3

Five reasons why products fail

Answer 3

Underinvestment
The product fails to deliver any customer benefit.
Forecasting
Internal politics, trade-offs and compromise can result in problems.
Industry response

Question 4

Marketing certainty map

Answer 4

Quadrant 1 Exploratory research: Here there is much uncertainty. Innovation needs to be nurtured overtime and immediate commercial gain cannot be expected
Quadrant 2 Developmental activity: This situation sees clear marketing goals and a well-defined market reaction, but uncertainty as to how such outcomes can be achieved
Quadrant 3 Market development: The method and technologies are proven and well understood and uncertainty of outcome relates to applying such methods to new opportunities
Quadrant 4 Market penetration: The uncertainty pertaining to outcomes and method is low, and there appears to be an immediate opportunity.

Question 5

Four factors that motivate an alliance

Answer 5

Globalization
Assets and competencies
Risk
Learning and innovation

Question 6

Four common principles of relationship marketing

Answer 6

Appropriate use: Like any technique, relationship marketing works better in certain situations
Establish relationship drivers: If a relationship strategy is feasible, what are the key components driving success?
Build customer value: Businesses need to adopt a value-building approach to relationships.
Retention: It is a normal fact of business life that long-established customers tend to be more profitable than new or occasional customers.

Question 7

Three components of planning

Answer 7

1 Objectives – what has to be achieved.
2 Strategy (or actions) – defining how the objectives are to be achieved.
3 Resource implications – the resources required to implement the strategy.

Question 8

Five components vital to achieving corporate strategy success (pyramid)

Answer 8

Vision
Corporate objectives and strategy
SBU/functional objectives and strategy
Resources
Structure

Question 9

Strategic marketing versus tactical marketing

Answer 9

Strategic marketing: Takes a longer-term time frame and broadly defines the organisation’s marketing activities. The process seeks to develop effective responses to a changing business environment by analysing markets, segmentation and evaluating competitors’ offerings. Problems in this area tend to be unstructured and require external, often speculative, data.
Tactical marketing: This takes a shorter-term time frame and concerns day-to-day marketing activities. It translates strategy into specific actions and represents the on-going operational dimension of marketing strategy. Problems are often repetitive and well structured with data being internally generated.

Question 10

Five common barriers to successful planning

Answer 10

Culture: The prevailing culture may not be amenable to marketing plans.
Power and politics: The development of strategic planning becomes a battlefield where vested interests fight each others proposals and squabble over status and resources.
Analysis not action: Much time and energy can be wasted by the process of analysing data and developing rationales for action, as opposed to simply acting.
Resource issues: In any planning situation, the potential exists to negotiate
over resources.
Skills: In some instances, managers do not have the skills required to make the best use of the planning process

Question 11

7 components of the marketing plan

Answer 11

1. Executive summary (industry analysis)
2. Corporate strategy (internal analysis)
3. External and internal analysis (opportunity identification)
4. Marketing objectives (objective setting)
5. Marketing strategy (formulation of strategy)
6. Implementation (proposed marketing programs and actions)
7. Control and forecasting (implementation and control)