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exams Flashcards

1
Q

What is marketing?

A
  • creating value through exchange
  • managing profitable customer relationships
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2
Q

Why marketing?

A

Intellectual value, practical utility, career importance?

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3
Q

Past marketing emphases?

A

Product leadership = focus on product quality, performance and features
Cost optimisation = focus on improving product efficiency and distribution
Sales orientation = focus on encouraging customers to make more purchases

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4
Q

Current market emphases?

A

Marketing orientation = understanding customers, delivering superior value, retaining customers for the long term(because technology development).
Focus on lifetime value of customers to the organisation
Examples = Netflix’s recommendation engine, ICloud Apple TV Apple Music for apple users

				Societal Marketing Orientation(Sustainability)
				= focus on sustainability(Starbucks using recyclable straws, apple removing charging blocks with iPhones)
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5
Q

Break-even ?

A

How many units will we have to sell to cover our costs exactly? (no profit no loss)

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6
Q

Overall Marketing VIEW?

A
  1. Assessing the environment = social, demographic, economic, technological, Political, and competitive forces.
  2. Analysing the market = customers, direct competitors, and company
  3. Approaching the market = segmenting, targeting, and positioning
  4. Using tactics = product, place(distribution), price, promotion
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7
Q

break even formula?

A
  • FIXED COST/(SELLING PRICE PER UNIT-VARIABLE COST PER UNIT)
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8
Q

Ideal mission statement has?

A
  • states one or two broad/fundamental goals
  • Is consumer oriented; promises to satisfy basic consumer needs or wants
  • Should provide motivation to the organisation’s employees/members
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9
Q

SWOT analysis?

A
  1. SWOT
    - external = largely uncontrollable to the company e.g. covid, global warming
    - internal = things the company has reasonable control over e.g. 4 P’s
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10
Q

Internal and external factors examples?

A

Internal - market share, customer retention, product quality, cost of capital, flexible workforce etc.

External - marketing “environment” new tech, economic trends, size of potential market, change in channel used by customers

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11
Q

How to set objectives?

A

Set Objectives - Realistic, Measurable, Time-specific, Compared to a benchmark

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12
Q
  1. Choosing a strategy for competitive advantage
A

= cost is lower than competition
= focus is intensively on a smaller target market
= offering unique value beyond similar price

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13
Q

Ethics in marketing?

A

Deontology = morality of a human act depends on whether it fulfils a duty or not
= some actions are right or wrong in themselves
= it is our duty to do these right actions
= e.g. in court, people have the obligation to speak the truth, even if the truth has unfavourable consequences

Utilitarianism = greatest good for greatest number
= e.g. Robin Hood steals from the rich and gives it to the poor. From a Utilitarian perspective, his actions are morally good because they produce maximum benefits to the majority

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14
Q

4 stages of marketing strategy?

A
  1. defining the business - mission statement
  2. SWOT
  3. Set Objectives
  4. Choosing a strategy for competitive advantage
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15
Q

What is marketing environment?

A
  • largely uncontrollable factors, external to the organisation
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16
Q

Name environmental factors?

A
  • Demographics, social change, economics, political/legal, technology, competition
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17
Q

What is demographics?

A

changes in populations, income(Singapore has more old people now than 50 years ago, India has more young people now, 40% of US consumer spending, HENRYs = high earnings, not rich yet)

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18
Q

What is social change?

A

values, culture, lifestyles, etc.(SUSTAINABILITY, binge eating, binge watching, healthy lifestyle, gender, color, masks)

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19
Q

What is economic factor?

A

income trends, recessions, etc.(inflation)

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20
Q

What are political/legal factors?

A

regulations and laws(govt. subsidies)

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21
Q

What are tech factors?

A

new methods, materials, etc.(cultural lag = it takes time to catch up with technological innovations)

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22
Q

What is competition?

A

Direct and indirect?

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23
Q

Types of culture?

A

high power distance, low power distance, individualism, collectivism
- High power distance: high = India, Brazil, France, Hong Kong(high power distance = vertical hierarchy such as army, corporate etc. | every person has a defined place and role in a high power distance culture)
- Low power distance: US, Sweden, New Zealand (strong expectation of equality of power, decision making etc.)
- Individualism vs Collectivism(I or We)
- Individualism = preference for independence and self-reliance and obligation to family and you that’s it, no obligations to a larger community. Individualist cultures celebrate the accomplishments of a person, not a group. This person then may put more emphasis on advancing their own interests. For example, Australia, US, UK. In individual cultures, work relationship is a business relationship.
- Collectivism = group is of paramount importance. Individual is expected to be loyal to the group. Operating outside of the group is considered shameful. For example Japan. Workplace with collectivist cultures have relationships that are considered to be family like. Employer offers protection in exchange for loyalty. Weak employee will not be dismissed but instead moved to another position.

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24
Q

What are the social groups?

A
  • Direct = primary, secondary
  • Indirect = aspirational, non-aspirational
  • Direct primary reference group = people you directly interact with i.e. family, friends
    = e.g. teenagers clothes shopping, stage 1 = “reconnaissance(surveying)” shopping with close friends , stage 2 = purchasing clothing with Parents(socialisation process), socialisation = activity of mixing socially with others
  • Direct secondary reference group = people you need to interact with i.e. peers, colleagues
  • Indirect aspirational reference group = people you like/admire/want to be BUT people you don’t directly interact with i.e. celebrities
  • Indirect non-aspirational (aka dissociative) group = reference group that an individual wishes to detach him or herself from
25
Q

What are factors of individual pyschology?

A

Attention, learning, memory

26
Q

What gets our attention?

A

Unexpected things, startbucks spelling your name wrong

27
Q

what are features of the stimulus?

A

colour, contrast, size. motion

28
Q

what are features of the perceiver?

A

expectations, prior knowledge, mood, involvement

29
Q

What are branding changes? packaging updates? principle of closure?

A

branding changes = coke slightly changing logo
packaging updates = cadbury updating its logo
principle of closure= filling in the gaps i.e. ingle ells not Jingle Bells

30
Q

What is key for many marketing communications?

A

Repetition

31
Q

What is motivation?

A

Maslow’s hierarchy of needs

self- actualisation(hobbies, travel)

esteem(car, furniture, credit cards)

love/belonging(grooming products, clubs, drinks)

safety(insurance, alarm systems)

physiological(medicines, staple items)

32
Q

what is the 5 step consumer decision process?

A
  1. Need Recognition
  2. Information Search
  3. Evaluation of Alternatives
  4. Purchase
  5. Post-purchase behaviour
33
Q

What is need recognition?

A

need to recognise the problem e.g. I’m thirsty

34
Q

what is information search?

A

looking for available information?

35
Q

what is intercept strategy?

A

= overwhelm consumers with too much information
= close the deal before competitor even come to the table
= e.g. Domino’s offers extensive options with many discounts so you end up choosing something to buy`

36
Q

What is evaluation of alternatives?

A

= Attribute = selecting a restaurant based on convenience and price i.e. relevant attributes to make decision
= Affect based = emotions are a big factor in making decision

= When healthy food market to the customers, marketers usually makepeople to consider the benefits and the nutrition over taste (experiencing attribute based evaluations).On the other hand, snacks and desserts, because of their lack in nutrition , usually adapted emotional appeal in marketing. From Coca Cola’s “open happiness” (now “Taste the feeling”) to Kit Kat’s “Have a break”, companies try to associate happiness and enjoyment with the product.

37
Q

Factors of purchase?

A

= when? What? From whom? How to pay?
= from whom? More than 50% of the purchases are unplanned, impulsive purchases
= how to pay? Pain of paying: Cash>debit card»credit card
= Debit Card: plastic is less tangible than cash, the depletion of resources(money) is less visible
= Credit Card: All of the above, and payment is deferred & misguided

38
Q

post-purchase behaviour?

A

satisfaction = loyalty vs churn

39
Q

continuum of decision making

A
  • high involvement approach = e.g. buying the right laptop with the right specifications
  • High involvement purchase require = extensive, informative promotion to target market
  • Low involvement approach = buying a burger
  • Low involvement purchase = rules of thumb and peripheral cues, low price guarantees, celebrity endorsers etc.
40
Q

what is the purpose of marketing research?

A
  • better decisions;
  • Tracking problems
  • Keep customers
  • Understanding the market
41
Q

What is secondary data?

A
  • Gathered for some purposes other than the questions on hand
  • Usually doesn’t have all the information you want
  • internal or external source = CRM database, Sales records
  • Internal sources = sales invoices, account receivable reports, exit interviews, customer letters etc.
42
Q

data analysis?

A
  • all models are wrong, some are useful = we are trying to find some useful information
  • We want to draw CASUAL INFERENCE(A->B)
  • However we can only find CORRELATION IN DATA
  • Correlation could imply causation(A->B) but not necessarily
43
Q
  • Correlation could imply causation(A->B) but not necessarily, explain
A
  • coincidence(fluke)
    • Reverse causality(B->A)
    • ENDOGENEITY(C->A & C->B)
  • Causation = supermarkets place chocolates and candies at checkout counters to promote impulse purchases. Probably causation there. But this may become less useful as customers can kill time with smartphones.
  • Traps in data analysis = FLUKE = Diaper-beer syndrome
  • Traps in data analysis = Endogeneity
    • If you analyse Grab’s data, you will find a positive correlation between price and customer.
    • You may incorrectly suggest them to hike the price to get more customers
    • But the truth is higher prices suggests rainy times
44
Q

what is primary data?

A
  • collecting new data to answer questions at hand
  • costs much more but also answers questions more accurately
  • Quite often impossible to gather
  • Examples = research participation, eye tracking, survey
45
Q

what is qualitative data?

A
  • Qualitative = depth interviews(interviewer speaks very little), focus groups(moderator leads discussion with group)
  • Qualitative = discovery of new ideas, preliminary understanding of key variables, deep understanding of motivations, open-ended, unstructured format, small representative samples, descriptive/interpretive analysis
46
Q

What is quantitative data?

A
  • Quantitative = surveys,(all surveys are wrong because of selection bias, use proper sampling methods like simple random, stratified sample), observational(in person vs mechanical), experiments(double blind study i.e. placebo group vs actual drug group), field experiments, natural experiments(Covid-19 and work from home), lab experiments(as long as participants know they are in a study, it’s a lab study. It doesn’t have to be in a lab.)
  • Quantitative = validation/confirmation of estimates, facts, key relationships, mostly structured format, large varied samples, statistical descriptive analysis
47
Q

how to do low cost market research?

A
  • Visit the competitor’s store
    • Become a customer
    • Invest in the competitor
    • Talk to your/their customers
    • Browse government records
48
Q

what is big data?

A
  • Too little information in too much data
    • Not necessarily about the size, but about the nature of the data
    • Traditional data analytic sees majority(80% approx.) of the whole picture at a relatively low cost
    • Big data analytics gain some more understanding(say 90%) of what’s really happening with a higher cost
    • Better computing equipment and better algorithms made it possible & cost efficient to do big data analytics
    • Big Data Methods: Decision tree, K neatest neighbours
49
Q

What is WTP?

A

willingness to pay = maximum amount an individual is willing to sacrifice to procure a good or avoid something undesirable

50
Q

What is consumer surplus?

A

difference between WTP and the actual price

51
Q

How does STP work?

A
  1. Market segmentation = dividing a market into subgroups based on common characteristics
  2. Targeting = deciding which segment is most worthwhile for investment of marketing efforts
  3. Positioning = gaining competitive advantage with features important to customers
  4. Create value through 4Ps
52
Q

Why segment the market?

A
  • Maximise profit
    • Better understanding of customer needs and wants
    • More accurate marketing objectives
    • Improved resource allocation
    • Better marketing communications
    • Sometimes customers on their own will segment
53
Q

How to segment?

A
  • Geographic
    - Region of the country or world
    - Market size
    - Market density
    - Climate
    • Demographics
      • INCOME
        • Determine consumer wants
        • Determine buying power
        • Retailers can appeal to
        • For e.g. low retailers = Walmart…high income = mandarin gallery
      • AGE
      • FAMILY LIFE CYCLE
    • Behavioural Segmentation
      • Usage rate: zoom subscription based on how much you need to use zoom
        • Airline segmentation based on how much you fly
      • Occasion
        • Disney land in Florida charges a much lower price for residents of Florida
        • Locals and PR of Singapore must purchase a valid entry levy to enter the Casino
54
Q

Criteria for choosing segment?

A
  1. Substantial = large enough to warrant a special marketing mix
    1. Identifiable and measurable = segments must be identifiable and their size measure able
    2. Accessible = members must be reachable with marketing mix
    3. Responsive = unless segments responds to a marketing mix differently, no separate treatment is needed
55
Q

Methods for segmentation?

A
  • Methods for Segmentation = loyalty program, coupons, discounts, time, CRM, IDs
56
Q

Undifferentiated target? pros and cons?

A
  1. Undifferentiated targeting
    • views the market as one big market with no individual segments and thus uses a single marketing mix
    • Pros = potential savings on production and marketing costs
    • Cons = unimaginative product offerings, company more susceptible to competition
57
Q

Centered targeting? pros and cons?

A
  • selects on most important segment of a market for targeting marketing efforts
    • Pros = concentration of resources, strong positioning, allows small firms to better compete against giants
    • Cons = segments too small or changing, large competitors may market to niche segment
58
Q

MultiSegment targeting? pros and cons?

A
  • strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
    • Pros = greater financial success, economies of scale
    • Cons = higher costs, cannibalisation
59
Q

What is positioning?

A
  • developing a specific marketing mix to influence potential customers’ overall perception or a brand, product line, or organisation in general
    • You position yourself in the eyes of consumers, and then you reposition when necessary

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