LESSON 8

Question 1

TRUE OR FALSE?

Marketing is synonymous with advertising?

Answer 1

ANSWER: FALSE

A common misconception is that marketing is synonymous with advertising

Question 2

Marketing is a customer-driven concept encompassing several major business activities, INCLUDING:

[LIST 3 ACTIVITIES]

Answer 2

ANSWER:

• *Marketing as a whole is a customer-driven concept encompassing several major business activities. Marketing is about:
• identifying the customer;
• understanding the customer’s wants and needs; and
• developing a strategy to ensure that the product (whether a good or service) meets the customer’s needs**

Question 3

Developing a strategy to ensure that the product (whether a good or service) meets the customer’s needs, involves the following activities:
[LIST 2]

Answer 3

ANSWER:

• *Developing a strategy to ensure that the product (whether a good or service) meets the customer’s needs, involves the following activities:
• establishing the optimal marketing mix (the 4Ps); and
• allocating the firm’s resources to achieve the marketing mix.**

Question 4

Today’s marketing successes are customer-driven, and the first step in developing a marketing plan is to determine the customer.

It all starts with identifying and understanding the customer, and then building a viable (profitable) business around that customer.

This is known as the _ _ _ _ _ _ _ and is at the core of most major marketing decisions, including factors relating to the product, place and distribution, price, and promotional mix.

Answer 4

Today’s marketing successes are customer-driven, and the first step in developing a marketing plan is to determine the customer.

It all starts with identifying and understanding the customer, and then building a viable (profitable) business around that customer.

This is known as the MARKETING CONCEPT and is at the core of most major marketing decisions, including factors relating to the product, place and distribution, price, and promotional mix.

Question 5

**TRUE OR FALSE?

Brokerages cannot develop a marketing program that appeals to the total real estate market because buyers and sellers are too numerous, scattered, and varied in their needs.**

Answer 5

ANSWER: TRUE

Question 6

NOTE ONLY

SEGMENTING AND TARGET MARKETS

Marketing services to a total market is very dificult given that each firm has limited resources and is faced with different competitive situations. Brokerages cannot develop a marketing program that appeals to the total real estate market because buyers and sellers are too numerous, scattered, and varied in their needs.

To overcome this problem, enterprises often segment the market into distinct subsets, with each subset sharing a common need. The enterprise then selects a segment of the market, which is the target market, and develops the marketing strategy around this target market.

This offers the enterprise the opportunity to deliver a product that satisfies the selected target market’s specific needs.

Answer 6

NOTE ONLY

SEGMENTING AND TARGET MARKETS

Marketing services to a total market is very dificult given that each firm has limited resources and is faced with different competitive situations. Brokerages cannot develop a marketing program that appeals to the total real estate market because buyers and sellers are too numerous, scattered, and varied in their needs.

To overcome this problem, enterprises often segment the market into distinct subsets, with each subset sharing a common need. The enterprise then selects a segment of the market, which is the target market, and develops the marketing strategy around this target market.

This offers the enterprise the opportunity to deliver a product that satisfies the selected target market’s specific needs.

Question 7

List 3 ways in which a market may be segmented?

Answer 7

Markets can be segmented in many ways:

DEMOGRAPHIC: age, level of education, gender, income

GEOGRAPHIC: regional location, population density, climate

PSYCHOGRAPHIC: lifestyle, personality, interests, values

BENEFIT: benefits provided by the good or service

VOLUME: light use versus heavy

Question 8

DEFINE SEGMENTATION?

Answer 8

SEGMENTATION: Dividing a market into distinct groups according to their needs, or related characteristics and behaviours, for the purpose of developing separate marketing plans designed to provide the highest value for each chosen segment.

Question 9

What factors are considered in selecting a target market?

[LIST 3]

Answer 9

ANSWER:

In selecting a target market, consider the following factors:

• *- available resources;
• profit and growth potential;
• competition;
• afinity you have for that market;
• whether you can reach the market in a profitable manner; and**

- whether that market will be responsive to your efforts.

Question 10

When assessing the target market, it is necessary to estimate the _ _ _ _ _ _. This is the value of all the buyer-seller relationships participating in the market for the business in a year.

Answer 10

ANSWER: When assessing the target market, it is necessary to estimate the total available market (TAM). TAM is the value of all the buyer-seller relationships participating in the market for the business in a year.

Question 11

The_ _ _ _ _ _ _ _ is the portion of the TAM for which the business’s value proposition is STRONGEST. This is the segment that could conceivably buy the service or the product offered by the business; it will be narrower than the TAM.

Answer 11

ANSWER:

The serviceable available market (SAM) is the portion of the TAM for which the business’s value proposition is STRONGEST. This is the segment that could conceivably buy the service or the product offered by the business; it will be narrower than the TAM.

Question 12

The _ _ _ _ _ _ is the share of the market that the business plans to capture, based on the capacity of the business.

Answer 12

The share of market (SOM, sometimes called serviceable obtainable market) is the share of the market that the business plans to capture, based on the capacity of the business.

Question 13

The _ _ _ _ _ _ _ model classifies products based on the amount of effort that a consumer is willing to go through to obtain the good or service in question.

This classification system is established based on how a majority view the particular product.

Answer 13

The SHOPPING BEHAVIOUR MODEL classifies products based on the amount of effort that a consumer is willing to go through to obtain the good or service in question.

This classification system is established based on how a majority view the particular product.

Question 14

LIST 4 TYPES OF GOODS ACCORDING TO THE SHOPPING BEHAVIOUR MODEL?

Answer 14

ANSWER:

Convenience Goods
Shopping Goods
Specialty Goods
Unsought Goods

Question 15

What are convienance goods?

Answer 15

ANSWER: Convenience Goods: goods and services that the consumer purchases frequently and uses immediately.

Question 16

WHAT ARE SHOPPING GOODS?

Answer 16

ANSWER: Shopping Goods: goods and services that the consumer purchases after having made comparisons of competing goods.

Question 17

WHAT ARE SPECIALTY GOODS?

Answer 17

ANSWER: Specialty Goods: goods and services with a unique characteristic, causing the consumer to want that particular product and no substitute.

Question 18

WHAT ARE UNSOUGHT GOODS?

Answer 18

Unsought Goods: goods and services that the consumer does not want or does not know about.

Question 19

TRUE OR FALSE? Professionals’ services can be perceived as a specialty good.

Answer 19

ANSWER: TRUE

Question 20

What are unsought goods? Give examples?

Answer 20

ANSWER:

Unsought Goods are goods that the consumer does not know about or does not normally think of buying, and the purchase of which arises due to danger or the fear of danger and lack of desire.

Examples are life insurance, funeral services, fire extinguishers and reference books.

Question 21

A marketing theory known as _ _ _ _ _ _ _ _helps to explain how consumers go about the purchase of shopping goods, including real estate services.

Answer 21

ANSWER:

A marketing theory known as the PROCESS MODEL OF BUYING BEHAVIOUR helps to explain how consumers go about the purchase of shopping goods, including real estate services.

Question 22

In real estate change in the family life cycle (e.g., starting a family, children leaving home, retirement, death in the family, divorce) may create a _____ need.

Answer 22

ANSWER: FELT NEED

Question 23

What are speciality goods?

Answer 23

Specialty goods possess some characteristic that causes the consumer to want that particular product or service.

The buyer is usually satisfied that he or she has enough information about the product or service prior to the purchase, and hence does not do any shopping. Specialty goods are generally high priced, complex, and unusual.

Question 24

A ____ need is the initial need or trigger that starts the buying process.

Answer 24

ANSWER:

A FELT need is the initial need or trigger that starts the buying process.

Question 25

COMPLETE THE SENTENCE

The credibility of the message source can have a profound impact on how the message is interpreted.

_______ sources, such as families, friends, and advisors, tend to have a great deal of credibility because they are considered to not have a vested interest.

Answer 25

ANSWER:

The credibility of the message source can have a profound impact on how the message is interpreted:

INFORMAL SOURCES, such as families, friends, and advisors, tend to have a great deal of credibility because they are considered to not have a vested interest.

Question 26

The _______ stage is the period during which the consumer is gathering information and becoming knowledgeable about the real estate service being sought.

Answer 26

ANSWER:

The PRE-PURCHASE ACTIVITY STAGE is the period during which the consumer is gathering information and becoming knowledgeable about the real estate service being sought.

Question 27

What are shopping goods? Give examples?

Answer 27

ANSWER: SHOPPING GOODS

Shopping goods are purchased by the consumer only after he or she has made comparisons of competing goods or services on the basis of price, quality, style, colour, and service quality.

Real estate services, homes, cars, and appliances are common examples of shopping goods.

Question 28

NOTE ONLY / PURCHASE ACTIVITY

Purchase Activity

The purchase activity stage is the stage during which the consumer makes the purchasing decision. For a real estate professional, this step occurs when the consumer oficially hires the service provider. Purchase activity involves the negotiation and signing of the listing agreement.

Once customers have passed through the pre-purchase stage and are ready to list, they make the decision on who they are going to engage to sell their home within a short period of time, typically no more than one week.

In the absence of strong referrals from friends or loyalty to a representative (two of the most common information sources), they tend to interview at least three representatives.

Answer 28

NOTE ONLY / PURCHASE ACTIVITY

Purchase Activity

The purchase activity stage is the stage during which the consumer makes the purchasing decision. For a real estate professional, this step occurs when the consumer oficially hires the service provider. Purchase activity involves the negotiation and signing of the listing agreement.

Once customers have passed through the pre-purchase stage and are ready to list, they make the decision on who they are going to engage to sell their home within a short period of time, typically no more than one week.

In the absence of strong referrals from friends or loyalty to a representative (two of the most common information sources), they tend to interview at least three representatives.

Question 29

Give examples of speciality goods?

Answer 29

ANSWER:

SPECIALITY GOODS: designer clothes, high-end cars, exotic perfumes, famous paintings, fancy foods, hi-fi components

Question 30

The ________ mix is essentially what promoting entails as well as how promoting is effectively done. It comprises personal selling, advertising, public relations, sales promotion, and direct marketing.

Answer 30

ANSWER:

The PROMOTION mix is essentially what promoting entails as well as how promoting is effectively done. It comprises personal selling, advertising, public relations, sales promotion, and direct marketing.

Question 31

Explain cost-plus pricing?

Answer 31

Take the cost of providing the product/service and add a desired profit margin in dollars.

Question 32

What are convienance goods? Give examples?

Answer 32

ANSWER: CONVIENANCE GOODS

Products that the consumer purchases frequently and needs immediately are called convenience goods. Milk, bread, newspapers, and groceries (often staple products) are all convenience goods.

Question 33

In communicating a marketing message explain rational appeal?

Answer 33

Rational appeal, where the message appeals to rational needs, such as the need for good value, economy, quality, savings in use, or security.

Question 34

Explain selective attention?

Answer 34

ANSWER:

Selective attention: seeking out information on topics of interest and ignoring messages that are not of interest.

Question 35

_______ refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.

Answer 35

ANSWER:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.

Question 36

What is penetration pricing?

Answer 36

ANSWER

Penetration Pricing: Deploy a low price during the early stages of production/servicing to gain market share.

Question 37

_ _ _ _ _ _ is face-to-face communication with a potential customer.

Answer 37

ANSWER: Personal selling is face-to-face communication with a potential customer.

Question 38

What is the major advantage of personal selling?

Answer 38

ANSWER:

The major advantage of personal selling is flexibility because a professional can react to quickly changing situations.

Question 39

Explain Prestige Pricing?

Answer 39

ANSWER:

Set high prices to send a message of uniqueness or premium quality. The image must be fullled in the long-term to sustain a premium price.

Question 40

Explain promotion pricing?

Answer 40

ANSWER: Offer coupons and promotions to stimulate demand.

Question 41

When is personal selling most appropriate?

Answer 41

ANSWER:

Personal selling is typically appropriate for complex or expensive products such as real estate property management services.

Question 42

Advertising reaches a large audience and is sometimes referred to as _ _ _ _ _ _ _.

Answer 42

ANSWER: Advertising reaches a large audience and is sometimes referred to as mass communication.

Question 43

Explain what segmentation is?

Answer 43

Dividing a market into distinct groups according to their needs, or related characteristics and behaviours, for the purpose of developing separate marketing plans designed to provide the highest value for each chosen segment.

Question 44

TRUE OR FALSE?

Businesses often report reduced operating costs from loyal customers.

Answer 44

ANSWER: TRUE!

Businesses often report reduced operating costs from loyal customers; since the customer is familiar with the process, there are fewer demands and mistakes made.

Question 45

TRUE OR FALSE?

Customers increase purchases and/or account balances as they grow larger and more affluent.

Answer 45

ANSWER: TRUE!

Customers increase purchases and/or account balances as they grow larger and more affluent, such as a client whose first purchase is a starter home, but who upgrades to larger and more expensive properties and he or she grows in his or her career.

Question 46

This involves stirring up some positive or negative emotions such as joy, happiness, pride, vanity, or fear.

Answer 46

ANSWER: EMOTIONAL APPEAL

Question 47

The steps involved in developing a communications message are as follows:

LIST 6

Answer 47

ANSWER:

1. Identify the target audience.
2. Decide on the desired response.
3. Choose the message.
4. Develop the message content.
5. Choose the media.
6. Develop a feedback system.

Question 48

COMPLETE THE SENTENCE:

_ _ _ _ _, can be through sales staff, experts, outside consultants, or word of mouth and are particularly effective for products or services that are complex and need explaining, such as real estate or mortgages.

Answer 48

ANSWER:

Personal communications, which can be through sales staff, experts, outside consultants, or word of mouth and are particularly effective for products or services that are complex and need explaining, such as real estate or mortgages.

Question 49

_ _ _ _ _ convey a message without direct contact between the sender and the receiver.

Answer 49

ANSWER: Non-personal communications, which convey the message without direct contact between the sender and the receiver.

Question 50

Explain what evidence marketing is?

Answer 50

ANSWER:

Evidence marketing recognizes that consumers are unsure of what they are buying when they are purchasing intangible products, such as legal services and real estate services, and so they seek “evidence of performance.” They talk to friends, observe, and make continual judgments as they try to decide on the value of the service or to help them choose between the competing real estate representatives.

Question 51

TRUE OR FALSE?

The heart of a direct mail system is the mail list. Lists often take considerable effort to put together and keep updated.

Answer 51

ANSWER: TRUE!