Marketing 1 - Introduction

Question 1

Definition of a market?

Answer 1

A place where supply meets demand and prices are formed

Question 2

2 perspectives of markets?

Answer 2

Reference perspective

Objectives perspective

Question 3

Explain the Reference perspective of a market?

Answer 3

The market is defined by who’s playing - the customers, competitors, and other stakeholders

Question 4

Explain the Objectives perspective of a market?

Answer 4

The market is defined by the objectives of the companies - they strive to control behaviour of customers, potential customers, and competitors

Question 5

5 usual stakeholders in markets?

Answer 5

Companies (sellers)
Buyers
Sales partners (e.g. franchisers)
Lobbyists 
Public Institutions (e.g. government)

Question 6

Model used to represent customer needs that marketing targets?

Answer 6

Maslow’s Hierarchy of Needs

Question 7

How many + what are the levels to Maslow’s Hierarchy of Needs?

Answer 7

5

• Self-actualisation
• Self-belief
• Belonging
• Safety/security
• Physiological

Question 8

How does Maslow’s Hierarchy of Needs work and what’s the critique of it?

Answer 8

Subjects are more deeply satisfied the further up the hierarchy they are
Subjects can only move up a level once the level below has been satisfied

Critics argue that some levels should be switched around

Question 9

Usefulness of Maslow’s Hierarchy of Needs in marketing?

Answer 9

Use the Hierarchy to establish which level of needs a company/product is targeting and converge marketing strategy accordingly

Question 10

Criteria to CLASSIFY markets?

Answer 10

Types of goods sold (consumer goods? services?)
Degree of internationality (local? regional? international?)
Distribution of power (buyer’s market? seller’s market?)

Question 11

Ways to determine types of markets?

Answer 11

Companies in the market
Products being sold in the market
Buyers in the market
Needs being met in the market

Question 12

Definition of marketing?

Answer 12

Where markets enable exchanges between a buyer and a seller, marketing manages these exchanges

Question 13

4 P’s of marketing + their management types?

Answer 13

Product - product management
Pricing - price management
Promotion - communication management
Place - sales management

Question 14

3 other P’s?

Answer 14

Physical evidence (layout or what the sales env looks like)
People
Process(es)

Question 15

Shoes and money example of a market?

Include when the company and consumer receive value.

Answer 15

Company offers shoes and needs money.
Consumer offers money and needs shoes.
The exchange of money for shoes takes place in the market.

Company receives value if money received is > the costs of making the shoes.
Consumer receives value if the benefit of the shoes received > costs to buy those shoes.

Question 16

3/4 types of company in a market throughout history?

Brief explanation of each

Answer 16

Production or product oriented (trying to produce as much as possible to satisfy market demand)

Sales/selling oriented (supply increased so companies started try to sell to maintain advantage e.g. price war)

Market/consumer oriented (high supply and similar products now mean companies try to attract a buyer’s attention through providing value in new or unique ways)

Question 17

What does it mean to be “consumer/market oriented” as a company in a market?

Answer 17

The company exists to serve the needs of the consumer and/or market, rather than just produce a product.

Question 18

What is proactive customer orientation?

Answer 18

Identifying what the customer will need in the future (not necessarily what they want e.g. Henry Ford and cars)

Question 19

7 key parts of the marketing manager’s role?

Answer 19

• Product management (what do we offer)
• Attribute and image management (what will it look like)
• Brand management (what associations will our product/company have)
• Price management (how much will we price our offering for)
• Advertisement/communication management (how/where will we tell potential customers about our offering)
• Competition management (how will we respond if someone else starts doing something similar)
• Distribution management (how will we get our offering into our consumers’ hands)

Question 20

Examples of standard advertising routes?

Answer 20

Radio
TV
Digital

Question 21

What is geotargeting?

Answer 21

Tailoring ads to a consumer of a certain geographic area

Question 22

What is geofencing?

Answer 22

Direct-to-mobile advertising, serves ads to people based on their activities and where they are

Question 23

What’s useful about geotargeting and geofencing for marketing managers?

Answer 23

Allows you to get a message to the consumer at the point of their decision-making - efficient and powerful method of influencing potential customers

Question 24

Why is marketing important?

Answer 24

• High product failure rates
• Functional product benefits/features have become increasingly similar
• Consumers have more options to choose from than ever before
• Consumers and their environment change over time so methods must evolve

Question 25

UK advertising watchdog cracking down on gender stereotyping in ads is an example of what stakeholder in the market and what does it mean for you as a marketing manager?

Answer 25

Example of a lobbyist

Can limit your power to market a product, just have to think more out of the box

Question 26

3 key things you can create with marketing?

Answer 26

USP (unique selling proposition)
Associations
Brand awareness/opinion

Question 27

What is Guerrilla marketing?

Answer 27

Using unconventional or surprise interactions to promote a product/service and expand brand awareness

Question 28

What is Viral marketing?

Answer 28

Marketing where consumers are encouraged to share information about a company’s goods/services via the internet - uses existing social networks to promote a product

Question 29

Reasons for brand/product failure?

Answer 29

Communication failure

Lack of adaptation to changes in the market (e.g. digitalisation, changes in customer needs/wants)

Question 30

What is Greenwashing?

Answer 30

Conveying a false impression or providing misleading information to make customers believe the company’s products are environmentally friendly/more so than competitors’ products

Question 31

Ways to deal with negative publicity?

Answer 31

Anti-campaigns
Redefining the marketing campaign
Recreate or rename the company
Modify or change the brand/culture
Ignore it (lol)

See the A&F case study

Question 32

Where do communication failures matter most and why?

Answer 32

International marketing

Messages can mean completely different things in other languages when translated directly, and different markets means new consumers with different needs to your current market - doing your due diligence with communication management means adapting to these consumers’ differences

Question 33

3 areas where digitalisation has strong effect on marketing?

Answer 33

Scale of communication - massively increased numbers of customers are reachable

Marketing products - you can increase the degree of personalisation of your activities

Extending the sales channels - allows you to cross-sell and upsell to create more value and capture more of a customer’s interest

Question 34

What is Cross-selling?

Answer 34

Recommending additional items and selling another product to a customer who buys your original product
- e.g. Apple selling airPods with iPhones, creating synergistic value between the two products for customer

Question 35

What is Upselling?

Answer 35

Selling consumers a higher price version of the same product with added value e.g. iPhone models with more storage, better cameras, stronger processors etc

Question 36

What are 2 difficulties experienced in marketing?

Answer 36

Customer retention

Multichannel marketing

Question 37

Why is it an issue that companies struggle with customer retention and how can you deal with it?

Answer 37

Recruiting new customers is 4x more expensive than retaining them

Use Framing techniques such as “get started” rather than “sign up” because it implies that there is more to do so the customer is more likely to come back in the future

Question 38

Why is multichannel marketing a difficulty and how can you do it effectively?

Answer 38

Customers use MULTIPLE sales channels to decide and ultimately buy the product e.g. see ad on youtube, research it on a comparison website etc

The key is making sure that the various channels are standardised and consistent to show the same information in the same way so customers don’t get confused.

Question 39

Why is product placement effective?

Answer 39

Availability heuristic - the high number of repetitions means the product info is brought to mind more often

Association of products with the way they’re portrayed, a.k.a. subliminal or unconscious advertising

Question 40

How are marketing and perception linked?

Answer 40

Using different colours or fronts to market a product/brand/service can alter the way customers perceive that thing, marketing is about altering a customer’s PERCEPTION of the value offered to them by the product

Question 41

Why is data-driven marketing on the rise?

Answer 41

The more data gathered about you by the company, the more specifically they can target your interests and needs

Question 42

Methods for collecting marketing information?

Answer 42

Loyalty programmes
Smartphone metrics
Connected cars (e.g. geotargeting)
Wearables (collect precise information about users e.g. health metrics for health insurance companies)

Question 43

What does it mean to companies and consumers that marketing is “all over the place”?

Answer 43

Companies need to find new ways to stand out and optimise their marketing campaigns or they’ll be lost in the crowd and miss out on customer attention.

Customers have such a vast amount of information being thrown at them and so many attempts to capture their interest that they become desensitised to fundamental marketing methods