l7

Question 1

what is marketing?

Answer 1

mgt process that identifies, anticipates & supplies customer needs efficiently and profitability

Question 2

what are the two purposes of market analysis?

Answer 2

• identify gaps in market where consumer needs not satisfied
• look for opps. to benefit from (sales, development of new p+s)

Question 3

state and explain the three methods of market research.

Answer 3

desk research (makes use of pre-existing info. gov stats, org stats. secondary data)

field research (asks random people their views on different products)

test marketing (campaign to test product in small, typical, stable population)

Question 4

state and explain the three elements used for customer analysis.

Answer 4

segmentation (trad & value-based. can market be segmented into groups requiring unique business strat?)

motivation (why do customers buy what they buy? elements they value most? customer objectives? selection & use of fav brands)

unmet needs (why some customers dissatisfied? looks at needs not being met)

Question 5

state and explain the two types of markets.

Answer 5

consumer markets B2C
industrial markets B2B

Question 6

what are fast moving consumer goods?

Answer 6

low value, high volume

Question 7

what are consumer durables?

Answer 7

high value, high volume

Question 8

what is market segmentation?

Answer 8

division of market into homogenous groups of potential customers who treated similarly for marketing purposes

Question 9

what is the marketing mix?

Answer 9

set of controllable marketing variables that firms blends to produce its wants in the target market

Question 10

state the four Ps of the marketing mix.

Answer 10

Product
Promotion
Place
Price (4 Cs)

Question 11

explain the product element of the marketing mix.

Answer 11

• brand
• quality
• usp

Question 12

explain the promotion element of the marketing mix.

Answer 12

• advertising
• sales promotions
• public relations
• personal selling

Question 13

explain the place element of the marketing mix.

Answer 13

direct :
retailer, mail order, online sales

indirect :
wholesaler, distributor, agent

Question 14

explain the price element of the marketing mix.

Answer 14

Costs (how much of markup on cost?)
Competitors (discount, parity, premium)
Corporate objectives (set low price to achieve market penetration)
Customers

Question 15

what is price and quality like in a cowboy brand?

Answer 15

high price
low quality

Question 16

what is price and quality like in a premium brand?

Answer 16

high price
high quality

Question 17

what is price and quality like in an economy brand?

Answer 17

low price
low quality

Question 18

what is price and quality like in a bargain brand?

Answer 18

low price
high quality

Question 19

what is price elasticity of demand?

Answer 19

measures how far demand for a product will change in response to a change in price

Question 20

what is price discrimination as a pricing strategy?

Answer 20

setting different prices for similar product in different parts of the market

Question 21

what is penetration pricing as a pricing strategy?

Answer 21

low prices in short term to gain market share

Question 22

what is price skimming as a price strategy?

Answer 22

charging a high price when product first launched

Question 23

what is going rate strategy as a pricing strategy?

Answer 23

taking existing market price as a guide (in established market)

Question 24

what is product line pricing as a pricing strategy?

Answer 24

setting different price points for various products in same product line. based on features or levels of quality

Question 25

what is dynamic pricing as a pricing strategy?

Answer 25

changing the price according to demand

Question 26

what are the extra 3Ps in the marketing mix?

Answer 26

People (relates to both staff & need to understand customer needs)
Processes (systems through which the service is delivered)
Physical evidence (testimonials regarding proposed service)

Question 27

state and explain the AIDA sequence.

Answer 27

Awareness
Interest
Desire
Action

primary aim to encourage customers to buy products by moving them along sequence